The latest information regarding PPP Loans and forgiveness procedure
needs. To All Paycheck Protection Program (PPP) recipients under the CARES ACT:
The Small Business Administration and Treasury Department updated the Paycheck Protection Program FAQs on October 7, 2020 to address the deferral period extension granted by the PPP Flexibility Act of 2020. The extension allows borrowers to defer payments of principal, interest and fees on PPP loans for 10 months. Due to the time sensitivity of the rules and regulations, please check the SBA PPP Loan website (link below) for the latest updates.
October 7, 2020 PPP FAQs
Small Business Association Guidance & Loan Resources
What should you be doing?
At Hometown Bank, we believe the changes are designed to work towards your benefit. Having said this, it bears mentioning that if you believe you will be eligible for total forgiveness (or close) you would be well advised to apply for your forgiveness the sooner of once you have exhausted the funds lent for those qualifying expenses, or the expanded period of 24 weeks contained in the revised bill that has been sent to the president for his signature.
Hometown Bank is still awaiting word on proposed changes to the application that are designed to:
• Simplify the application.
• Establish a borrowing threshold below which applicants are given some flexibility for submission as it relates to documentation (e.g., how a business demonstrates a lease stream against property they rent from themselves).
Given this uncertainty, you may still elect to apply for forgiveness. Click here to go to the Treasury’s website that will provide you access to the application available now and its instructions.
Your accountant is a good source of information and should be helpful as you navigate the application or have additional questions about the program. You are also welcome to reach out to us with any questions you may not be able to answer yourselves. I have listed the names of our lending staff below for assistance:
John Ryan 330/677-6026 x217
Steve Deibel 330/221-7559
Jason Stewart 330/677-6026 x211
Mark Olesh 330-677-6026 x214
Matt Chechak 330/677-6026 x226
Brian Bialik 330/677-6026 x219