Georgia Primary Bank thanks you for trusting us to process your Paycheck Protection Program (PPP) loan. As a community bank our goal is to serve our community and we did just that! Our staff answered the call and was able to approve over 465 PPP loans totaling more than $53 million!
Now that your loan is approved, most of you are concerned and have questions about forgiveness. We hear you and that is the reason we created this PPP Resource Page.
In anticipation of additional legislative changes to the PPP Forgiveness process, and our desire to provide a simple and efficient process, the tentative date that Georgia Primary Bank will begin accepting PPP Forgiveness applications is Monday, September 14, 2020.
We are aware of SBAs start date of August 10th; however, revisions to the program could change the PPP Forgiveness application process for many of our borrowers. This could mean reduced paperwork and/or revised applications.
We also are continuing to improve our internal process to ensure we implement the best solution for our borrowers.
***The following information is based on current guidance from Treasury/SBA***
Paycheck Protection Program Flexibility Act
As of June 5, 2020, the Paycheck Flexibility Act (PPFA) is law. Click to read the entire Bill – Paycheck Protection Program Flexibility Act
Highlights from Paycheck Protection Program Flexibility Act
- The Act will extend maturity to 5 years for all loans made after June 5, 2020. Existing PPP loans may be modified at the agreement of both lender and borrower.
- Changes restrictions on Use of Proceeds from 75/25 to 60/40 for payroll and non-payroll expenses. Borrowers must use 60% of PPP loan funds for payroll costs. As of now, Forgiveness is dependent upon at least 60% being used for payroll costs.
- Extends the 8-week covered period to the earlier of 24 weeks or Dec. 31, 2020. Existing borrowers may not choose any other covered period; they must choose either 8 weeks or 24 weeks as their applicable covered period. Note: CARES Act restrictions apply throughout the 24-week covered period.
- Extends deferral period on principal and interest payments. No payment is due until forgiveness determination is granted by SBA. The Act outlines that the deferral period will end on the date that the lender receives forgiveness payment from SBA.
- The Act outlines rules for Forgiveness cutbacks. Borrowers are allowed to include in their FTE count employees terminated for cause or for whom an offer to rehire was made but refused. The Act also allows borrowers to avoid forgiveness cutback if they can document an inability to return to previous levels of business activity due to the need to comply with HHS, CDC, OSHA requirements or guidance.
- Allows payroll tax deferment for PPP recipients.
Paycheck Protection Program Loan Forgiveness Application
- On June 25, 2020, Treasury/SBA revised the PPP Loan Forgiveness Application Form 3508 and introduced the PPP Loan Forgiveness Application Form 3508EZ. We are reviewing the information and will share updates via email and on this page as received. You (the borrower) are required to complete the application in its entirety and submit all required supporting documents. Please refer to your PPP loan closing documents and the PPP Loan Forgiveness Application Form 3508 Instructions or the PPP Loan Forgiveness Application Form 3508EZ Instructions to complete parts of the applications.
- The following websites can be used to assist small business owners with the PPP Loan Forgiveness Application (SBA Form 3508). Both are free.
These websites are provided for information purposes only, as Georgia Primary Bank does not endorse either company.