First Bank and Trust (FBT) appreciates the trust you have placed in us to process your Payment Protection Program (PPP) Loan. Since the enactment of the CARES Act on March 27, 2020, there have been numerous PPP rules and guidance changes issued by the Small Business Administration (SBA) as Congress and the U.S. Department of Treasury developed and modified program guidelines. We realize the constant change in the SBA’s PPP loan program has led to confusion and concern by customers.
This page serves to clarify the program’s current guidelines, timelines and process for applying for forgiveness of your PPP loan. We are adjusting our processes and online system to implement the latest program changes. As with your original application for the PPP Loan, your forgiveness application will be completely online, using the same website and login information you created when you applied for your PPP loan.
We expect to have the new SBA loan forgiveness applications available online within the next two weeks. If you applied for and received your PPP Loan through FBT, you will receive an email with a link to our online portal; it is not necessary to complete any SBA paper applications. Your loan officer will be available to assist you in completing your forgiveness application quickly, easily, and all online.
On June 5, the Paycheck Protection Program Flexibility Act of 2020 (PPPFA) was passed and amended several aspects of the CARES Act related to PPP loan forgiveness, payroll tax deferrals and loan maturity dates. These changes are responsive to the changing economic conditions brought about due to COVID-19 and are designed to provide more flexibility to borrowers.
The 60/40 Rule
Extension of “covered period” from 8 to 24 weeks.
Borrowers have the option to extend the 8-weeks to 24-weeks for payroll costs to retain and rehire employees. For businesses that are still closed or operating at less than their normal operating hours, this extended covered period is especially helpful. See SBA PPP FAQs, Question 20
Extends the re-hiring window.
The PPPFA extends the deadline to rehire and restore wages and salaries for employees from June 30 to December 31, 2020. The law also provides exemptions from the re-hiring requirements if borrowers can provide required documentation (see SBA PPP FAQs, Question 40).
Extends Loan Maturity Dates
Loans made prior to June 5 have a maturity of 2 years; loans made after June 5th have a maturity of 5 years. All loans have an interest rate of 1%. (See SBA PPP FAQs, Question 49).
Deferral of payroll taxes
Borrowers will be eligible for a 2 year deferral of the employer’s share of Social Security payroll taxes.
Two Loan Forgiveness Applications
There are now two versions of applications for forgiveness of your PPP loan. Both applications provide borrowers the option of using the original 8-week covered period or a new extended 24-week covered period. Both applications provide a step-by-step process for calculations you may need.
The links to the PPP Forgiveness Application instructions are provided below and are strictly informational. You do not need to complete any paper applications. The application process at FBT is all online and you will receive a link to our loan portal within the next two weeks.
PPP Loan Forgiveness Application Instructions for Borrowers
PPP EZ Loan Forgiveness Application Instructions for Borrowers
View our website for updates and information about any of our products and services at www.FBTonline.com. And, as always, please contact your local branch, your loan officer or call our Solution Center at (877) 426-2498 for any banking need.
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