Important Dates and Deadlines Related to PPP Loan Forgiveness & PPP Loan Repayment

Many first round PPP loans are set to begin amortizing as of August 2021.  We want to make sure that our PPP borrowers are aware of important dates and deadlines related to your PPP loan, so that you can plan for either moving forward with requesting PPP loan forgiveness, or alternatively, establishing a plan to repay the loan according to the amortization indicated in your loan documents.

If you wish to avoid repaying your PPP loan, we encourage you to prepare a forgiveness application as soon as possible, allowing ample time before the scheduled amortization of your PPP loan begins.  It is important to note that the SBA has stated that the forgiveness amount will be no larger than the actual outstanding principal and interest balance on the loan at the time of forgiveness. 

CBC is ready to help! 

This page includes detailed instructions and tools to assist with the PPP Loan Forgiveness process for both 1st draw and 2nd draw PPP loans.

A few details regarding loan forgiveness and repayment:

  • Borrowers are able to elect a Covered Period of no more than 24 weeks on the forgiveness application, representing the time allowed to use the PPP funds after the PPP loan has been established.
  • The required repayment period for the PPP loan begins 10 months after the Covered Period ends.

A Borrower Example:

  • Borrower received a PPP loan on April 16, 2020
  • Assuming election of the maximum Covered Period of 24 weeks (minimum of 8 weeks), the Borrower’s Covered Period would end no later than September 30, 2020
  • If the loan is not forgiven in the interim, repayment would need to begin on August 1, 2021 (10 months after the end of the Covered Period)

PPP Loan Forgiveness Starts Here! 

If you are ready to move forward with requesting PPP loan forgiveness for either a First Draw or Second Draw PPP loan, please see the below step-by-step instructions (note: there are separate instructions provided for loans of $150,000 or less, and for those greater than $150,000).  In addition, further down this page you will find additional forgiveness tools, including our searchable FAQ library, PPP webinar recordings and presentation slides.

For loans of $150,000 or less, the 3508-S application form is for you…

This is a straightforward form. You do not even need to submit any supporting documentation! Simply follow 3 steps listed below:

Step 1: Download the 3508S calculation model – you only need to complete the Summary tab (cells highlighted in yellow); the other tabs are for your use to keep detailed records should you desire.  Note: Under the same section, the corresponding “PPP Loan Forgiveness Documentation Checklist 3508S” is also available for download.

Step 2: Once the model has been completed, please contact your Relationship Manager or Banking Services Officer to receive a secure link for uploading the document. 

Step 3: We will review your model and send you a ready-to-file forgiveness application. Just initial the certifications, sign and return.

Congratulations – you’re done! We will submit to the SBA and coordinate from there.

For loans above $150,000, there are new 3508 and 3508-EZ application forms and recently updated models.   The 3508 and 3508-EZ have similar requirements as before, but with some minor changes and allow for certain additional non-payroll expenses. Please follow the steps below:

Step 1: Download and complete the 3508 or 3508-EZ calculation models – To assist with completion of the model, we recommend that you utilize the corresponding resources available on the website, including the PPP Loan Forgiveness Documentation Checklist, the User Guide and the How to Video.

Step 2: Once the model is completed, please contact your Relationship Manager or Banking Services Officer to receive a secure link for uploading the model and any required documentation. 

Step 3: We will review your model and send you a ready-to-file forgiveness application. Just initial the certifications, sign and return.

Congratulations – you’re done! We will submit to the SBA and coordinate from there.

Our goal is to make this process as straightforward and simple as possible for you, therefore have created a Quick Calculation Model for the the new 3508S form, as well as a documentation checklist to guide you through the application process. 

Here, you will find links to download the Loan Forgiveness Calculation Model, a How-To Video that walks you through the model, and a detailed User Guide that carefully explains each part of the model. PLEASE WATCH THE VIDEO AND READ THE USER GUIDE before beginning to enter data into your model. Doing so will save you considerable time and effort and help to avoid any unnecessary rework.

CBC Forgiveness Documentation Checklist (updated 02.23.21) – click here.

Calculation Model User Guide – click here

How-To instructional video – click here.

Loan Forgiveness Calculation Models (updated 03.26.21) – click links below to download. 

We will provide an updated FAQ Library weekly. Questions deemed specific to individual businesses will receive a direct response each week. Due to the significant volume of questions and answers to date in the FAQ Library, an updated searchable format was created and is linked below. 

FAQ Searchable Library (updated as of 01/27/21) click here.

 

For your convenience, below are links to downloadable copies of our webinar presentation slides.

The Guide and Video in the tab above cover a wide array of topics and provide answers to most common questions. However, if after viewing the video and reading the guide you are in need of additional clarification, you can forward inquiries to  CBCModel@armaninollp.com. 

Note: This email is for inquiries only. Please do not send confidential information to this address. If referencing your specific loan number, please submit with only the last five digits.

 

 

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