07/28/2020 3:12:05 PM
Please see the following update regarding the PPP Forgiveness process from our friends at First Citizens Bank:
There continues to be legislative developments, and a preliminary agreement has been reached on the Phase IV/CARES Act 2.0 Coronavirus package. A few provisions – which are subject to change because negotiations are ongoing – are:
- The proposal includes a streamlined loan forgiveness process for small loans under $150,000 and an intermediate forgiveness process for loans under $1 million.
- Loan forgiveness will be expanded to include certain supplier costs, operating expenses, and damage caused by rioting.
- There will be a more generous PPP calculation for farmers and ranchers based on their 2019 gross income.
SBA Guidance on Forgiveness:
Procedures for Lender Submission of PPP Loan Forgiveness Decisions and SBA Forgiveness Loan Reviews were released Friday afternoon. We are currently reviewing these procedures to understand how they impact our process. The SBA’s PPP Forgiveness Platform is slated to go live and begin accepting Lender submissions on August 10, 2020. However, it was also noted in the guidance that based on the legislative developments above, if any new legislative amendments to the forgiveness process necessitate changes to their system, that this date would be subject to an extension.
As of now, August 10th is the earliest ‘target’ date for the SBA’s platform to go live however it is highly likely to get extended due to additional legislative changes. First Citizens is confident our submission system will be ready whenever the SBA platform does go live.
Several major news outlets have reported some discussions included in the Cares Act 2.0 package regarding the possibility of a second PPP loan for severely impacted businesses however nothing has been finalized as of yet so I don’t have any information on that program at this time.