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

We want to make sure that our PPP borrowers are aware of some important dates and deadlines related to PPP loan forgiveness and repayment 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.

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)

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 a loan at the time of forgiveness. 

CBC is ready to help! 

Our PPP Forgiveness Resources can be accessed on our website:

https://www.californiabankofcommerce.com/ppp-loan-resources/

The website contains detailed instructions and tools to assist with the PPP Loan Forgiveness process.  

A few tips:

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 CLICK this link to visit our website, then 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. CLICK this link to visit our website, then 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.

2021 PPP Round Two Resources (click below)

Updated 4.01.21 > With President Biden’s signing of the PPP Extension Act of 2021, the application deadline for 2021 PPP Round Two has been extended to May 31, 2021 (from March 31, 2021), with an additional 30-day period for the SBA to process applications that are still pending.

2021 PPP ROUND TWO RESOURCES > Click Here for more information regarding 1st Draw and 2nd Draw applications, checklists and calculation models.

PPP Loan Forgiveness Resources

If your forgiveness application is ready, including completion of the Loan Forgiveness Calculation Model as well as availability of all required supporting documentation, please contact your Relationship Manager or Banking Services Officer for further instruction on next steps.

  • Please do not forward confidential information or forgiveness application documents by email.
  • Applications will be accepted only through a specific secure upload link that will be provided to you by your Relationship Manager or Banking Services Officer.

 

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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