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.
We will use this page to share information with our customers and friends. For additional PPP information and updates, you may also visit www.Treasury.gov and www.SBA.gov.
***The following information is based on current guidance from Treasury/SBA***
Small Business Forgiveness Guidelines:
- The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent and utilities. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness may be reduced if full-time headcount declines, or if salaries and wages decrease.
- This loan has a maturity of 2 years and an interest rate of 1%.
Paycheck Protection Program Loan Forgiveness Application
- Treasury/SBA released the PPP Loan Forgiveness Application on Friday May 15th. 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. You will need to refer to your PPP loan closing documents to complete parts of the application.
Sole Proprietorship & Independent Contractors Forgiveness Guidelines:
- As of now, in order to have your loan forgiven, you must spend at least 75% of the loan funds on payroll costs, which include an amount for owner compensation based upon 2019 net earnings. The remaining amount, which cannot exceed 25% of the loan proceeds, must be spent on interest on a mortgage, a loan secured by personal property used in the business, rent, and utilities. To the extent that these expenses are incurred in connection with a home office, only the tax-deductible portion will apply. Additionally, these expenditures must take place within the 8 weeks following receipt of the loan proceeds.