The latest information regarding PPP Loans and forgiveness procedure
needs.To All Paycheck Protection Program (PPP) recipients under the CARES ACT:
Not unlike the beginning of the rollout of the PPP, the forgiveness leg of this is equally fraught with indecision as congress attempts to finalize and clarify the process and procedure for applying for loan forgiveness. On Wednesday, June 3rd, the House and Senate both passed legislation that would modify the terms of the PPP since your application and funding for the same. All that is required now is for the president to sign this bill – which we expect. Due to the time sensitivity of the rules and regulations, please check the SBA PPP Loan website (link below) for the latest updates.
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