S M A L L B U S I N E S S R E S O U R C E S
(Updated Monday, July 3, 2020)
PPP Flexibility Act gives borrowers more loan forgiveness options
Though the SBA has released two new PPP Forgiveness Applications (an EZ and Full version) and has extended the dates for which new PPP applications may be submitted, as of today, the SBA has not yet provided a portal or method to accept applications for forgiveness. Guidance on the process is also currently pending.
To download the new PPP Forgiveness Applications:
A current version of the Interim Final Rule -- that aligns prior SBA guidance with the recently enacted PPP Flexibility Act -- is also available.
The new "EZ" application (released June 17, 2020) reduces the number of calculations required to apply for forgiveness. To use the new form, you must meet at least one of three criteria based on business type, level of employment, and impacts to business activity during the covered period.
Other important details include:
- Many of the documentation requirements from earlier guidance are still in effect, and the calculation is relatively unchanged.
- The new EZ form requires you to make new certifications related to your employment levels and impacts to your business activity during the covered period.
- Both applications have been updated to reflect the new requirements that employers use at least 60% (down from 75%) of the forgiveness amount for payroll.
- Both the EZ and Full application give you the option of using the original 8-week covered period (if your loan was made before June 5, 2020) or an extended 24-week covered period.
- As part of an online forgiveness process, we anticipate questions related to payroll calculations made using the "Schedule A Worksheet." Be sure to maintain a copy for your records in the event it is needed for review by us or the SBA.
While we encourage you to gather the necessary documentation in anticipation of submitting your application for forgiveness, please be aware the SBA has not yet provided guidance on the complete process and is not yet accepting the forgiveness applications.
We will provide updates to all PPP clients as the information becomes available.
When can I apply for PPP Loan Forgiveness?
Though the eight weeks have passed for many PPP borrowers, and you now have access to the new Forgiveness Applications and documentation, please be aware we do not yet have guidance from the SBA nor has the SBA provided a method to accept the forgiveness application.
Our recommendation is to hold onto your documentation and application until we notify you.
Will Prime Meridian Bank notify me by email when it's time for me to start the forgiveness process?
Yes. Once the SBA provides additional guidance, and a method for submitting the forgiveness applications, you will receive an email inviting you to begin the process.
Reminder, this process is pending action from the SBA.
Will I be returning the completed Application to Prime Meridian Bank?
Yes. When it is time you will submit your PPP Loan Forgiveness Application and documentation to Prime Meridian Bank. You will receive an email from us when the process is ready to begin.
Will Prime Meridian Bank offer guidance on completing the application?
Absolutely. The online forgiveness application process will be both convenient and efficient for you. Our team is staying up-to-date with changes that may impact the process and we will share resources as they become available.
How important is documentation?
Extremely important. Keeping good records during the process (ie: payroll, employee benefits, etc.) is essential to forgiveness of the loan.
Will Prime Meridian Bank establish an online process to apply?
Yes. An online process will make applying for forgiveness as convenient and efficient as possible. Additional information will be emailed to you when ready.
Will I need help completing the application?
Every situation is different. As the one certifying the data being submitted, it will be very important that the information and records you provide be as clear and accurate as possible. In some cases we recommend you enlist the assistance of an accountant or record-keeping professional to assist in gathering these records.
Our team will help with the process though we are not able to offer legal or accounting advice.
An evolving process
As this process continues to evolve your patience and grace is greatly appreciated.
More About the Paycheck Protection Program
Released by the US Treasury and the Small Business Administration (SBA.gov) the link below is a summary of the Paycheck Protection Program (PPP) for small businesses and other eligible organizations.
Scroll to the middle of the page to the section “Assistance for Small Businesses.” Here you will find an overview of the program as well as when to apply plus the borrower application to complete and provide to a participating lender.
Current and accurate financial records will be key to moving the process along in an efficient manner.
Disaster Loan Programs (State and Federal)
Representatives from the Small Business Development Center (SBDC) encourage small business owners to fill out the damage assessment survey at: https://floridadisaster.biz/BusinessDamageAssessments .
It is also important to note the order in which owners are encouraged to request assistance.
- The Emergency Bridge Loan Program
- The SBA’s Disaster Loan Program
Download the COVID-19: Assistance for Small Business guide which will walk you through both processes:
State of Florida Funds: short-term, interest-free loans (for the duration of the loan) are being made available to small businesses that have experienced injury from COVID-19. This allows small businesses to receive cash immediately to lessen the impacts and helps “bridge the gap” until other resources (insurance claims, etc.) become available. For eligibility and to apply online visit http://www.floridadisasterloan.org/ or call 866-737-7232.
SBA Disaster Assistance - The U.S. Small Business Administration (SBA) provides low-interest disaster loans to help businesses and homeowners recover from declared disasters. Businesses can apply for loans online through a 3-step loan process. https://.www.sba.gov/funding-programs/disaster-assistance
Tips from Our Treasury Management Team
While there are no changes to the processing of ACH files, Remote and Mobile Deposits at this time, clients that are operating their business or organization remotely should consider the following:
- If you and your employees are working remotely, provide us with alternative phone numbers where we may reach you.
- If your remote scanner is being moved off site, you may need help downloading and installing new drivers. Contact our Treasury Team at (850) 907-2300 for help.
- Confirm access to Online Banking. Be sure you have access to your credentials and are able to login successfully. Store sensitive information securely.
- Download our Mobile App
- Plan for remote transmission of ACH files. Print extra blank copies of our ACH Transmittal Form so you can submit from outside the office. Call (850) 907-2300 for assistance if needed.
- Ensure access to secure tokens. If you use a secure physical token/fob to log in to Online Banking, ensure that you and your employees have access to the token(s) or contact us for assistance setting up a Virtual Secure Token.
S T I M U L U S U P D A T E
Stimulus Payments FAQs
Click here for a guide to COVID-19 economic stimulus relief.
Get My Payment Tool
The Internal Revenue Service (IRS) has established a way for taxpayers to check the status of their stimulus payments under the CARES Act. The tracking tool, called Get My Payment, is available on the IRS website. https://www.irs.gov/coronavirus/get-my-payment
To check for your refund, go to the website and click the “Get My Payment” button. You’ll need your social security number, date of birth and address. In some cases you will need a copy of your most recent tax return(s) so be sure to have those available.
In addition to checking your payment status, you’ll be able to:
- Confirm how you want to receive your payment (direct deposit or check)
- Enter or update your bank account information for direct deposit (if the IRS doesn’t already have it)
- Update your mailing address if needed