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.
Georgia Primary Bank began accepting PPP Forgiveness applications on Thursday, October 1st. PPP borrowers should have received an email with instructions on how to start the PPP Forgiveness application process. Each email contained a secure link that gives you access to our platform, your PPP loan information and instructions on how to complete the SBA Forgiveness applications.
On Oct. 8th, SBA released the PPP Forgiveness Form 3508S. This form is for use on PPP loans with a total loan amount of $50,000 or less. Georgia Primary Bank will begin accepting and processing SBA Form 3508S on Tuesday, November 17th. Please use the secure link we provided to access our Forgiveness platform and select the preferred Forgiveness application.
Which Forgiveness form should you use?
- SBA Form 3508S – for use on PPP loans with a total loan amount of $50,000 or less, except for those borrowers that together with their affiliates received loans totaling $2 million or greater.
- SBA Form 3508EZ – for self employed, sole proprietor, or independent contractors. Also for borrowers that did not reduce the salaries or wages of their employees by more than 25% and did not reduce the number of hours of their employees.
- SBA From 3508 – to be used by any PPP borrower who does not meet the criteria for forms 3508S or 3508EZ.
Once completed and submitted back to Georgia Primary Bank, please allow 3-7 business days for review and processing. Your PPP lender will contact you with any questions or to request additional information.
If you have questions regarding your PPP application please contact your PPP Lender directly. Your lender will be able to answer Treasury/SBA policy questions, however we are unable to provide any tax or accounting advice outside of written Treasury/SBA guidelines. We encourage our borrowers to contact their CPA, Bookkeeper or the local Small Business Development Center for help with technical questions.
We continue to monitor all program changes and will notify you with pertinent information.
***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 October 8, 2020, Treasury/SBA released the PPP Loan Forgiveness Application Form 3508S. 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 3508S Instructions to complete parts of the applications.
- 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.