PPP Forgiveness Information from Tennessee State Bank:
Thank you for choosing Tennessee State Bank (TSB) as your lender for the Paycheck Protection Program (SBA PPP). Earlier in May we provided you the original SBA PPP Loan Forgiveness Application. The U.S. Small Business Administration, in consultation with the U.S. Department of the Treasury, issued new and revised guidance for the Paycheck Protection Program (PPP). This guidance implements the Paycheck Protection Program Flexibility Act (PPPFA), signed into law by President Trump on June 5, 2020.
To implement the PPPFA, SBA revised its first PPP interim final rule, which was posted on April 2, 2020. The new rule updates provisions relating to the reduction of the payroll requirement (from 75% to 60%), extending the covered period from 8 weeks to 24 weeks, loan maturity, deferral of loan payments, and other forgiveness provisions. As such, SBA has issued revised PPP applications and Loan Forgiveness Application, including a new EZ application form. The new EZ version of the forgiveness application (Form 3508EZ) applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
Both of these Forgiveness applications give you the option of using the original 8-week covered period (if your loan was made before June 5, 2020) or an extended 24-week covered period. As your lender, we want you to be informed and ready for this process. Below are the two most recent Forgiveness application forms. You may complete and return to your Lender or complete online. Please ensure to provide any required supporting documentation as outlined in the applicable application’s instructions.
For additional information, you may access the U.S. Department of the Treasury for the various resources in regard to the Small Business Paycheck Protection Program. For any additional inquiries or assistance on compiling your documentation for forgiveness, please contact your tax preparer and/or attorney.
Coronavirus Emergency Loans for Small Businesses:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed and the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Please see this resource for Recommendations on Keeping Records to Qualify for SBA PPP Loan Forgiveness. If you need any additional information, the U.S. Department of the Treasury has additional resources in regard to the Small Business Paycheck Protection Program. For any additional inquires, it is recommended that guidance is sought from a tax preparer and/or attorney representing the borrower.
If you have any questions or need information on the Paycheck Protection Program, please contact our Credit Department at (865) 908-5839.