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Paycheck Protection Program

SBA Paycheck Protection Program

Last updated on August 27, 2020 by your Central Bank & Trust SBA experts.

The Paycheck Protection Program is an SBA program that is part of the CARES Act which was signed into law on Friday, March 27, 2020. Below are the details of the program.

PPP Forgiveness Update

When Congress recently adjourned with no resolution on additional stimulus, all proposed changes to PPP Forgiveness were tabled until they resume those discussions.  There are multiple PPP Forgiveness modifications proposed in the various iterations of a new stimulus package.  They are meaningful changes and warrant waiting for Congress to reconvene and come to some conclusions.

One of the key proposals in Congress would remove the forgiveness application requirement for small businesses and nonprofits with loans under $150,000.  Instead, borrowers would “attest” to their good-faith effort to comply with the loan rules, notably using at least 60% of the money for payroll expenses.  This is a substantial change and benefit to most PPP borrowers.

A separate proposal would significantly reduce the forgiveness application requirements for loans from $150,000 to $2 million, and those borrowers would no longer have to submit payroll support and other documents showing how the money was spent but simply certify that the records exist and keep them for three years.

Both of those proposals appear to have bipartisan support but are tied up in the larger stimulus debate.

CB&T continues to monitor the progress in Congress and throughout the industry, and once some definitive answers are in place we will formalize and share a process for submitting for Forgiveness.

We appreciate your continued patience as the Forgiveness process evolves into what appears could be a much more favorable process for Small Businesses. Should you have any questions, please don’t hesitate to reach out to your Banker or Relationship Manager.

As we wait for the updated PPP Forgiveness Application from the SBA, we encourage you to use the expense tracking log to help keep all expenses tracked and summarized in one spreadsheet. Please note that the default dates are set for the 8-week period, please adjust this to fit your chosen time period. Scroll down to download the spreadsheet.

Download the PPP Expense Tracking Worksheet

Download

Clearly, there are a lot of questions to be answered about PPP forgiveness.  As your bank, we want to make sure that you are armed with the best guidance we can find.  We will continue to share any information or direction we receive from the SBA.