CARES Act Paycheck Protection Program
Update Fall 2020
If You Have Already Applied For Forgiveness:
- In early October, the SBA began making forgiveness payments to banks and lenders for PPP Loans.
- We are unsure of the prioritization process the SBA is using to make decisions, however we expect the process to occur in waves over the next several months.
- As Osgood receives forgiveness decisions and proceeds from the SBA, you'll receive email confirmation from your Loan Officer.
- A payoff letter will be mailed to you shortly thereafter if full forgiveness is granted.
- If full forgiveness is not granted we will work with you to determine why and next steps. Please remember the SBA makes this determination, not the bank.
- There is no need to contact us for an update on the process unless you have specific questions related to your relationship.
If You Have Yet To Apply For Forgiveness:
- The SBA also recently updated their process to streamline forgiveness requests of $50,000 or less. Both the SBA and our software provider are both working to update their portals with the new form. If you meet this criteria and wish to submit this streamlined application sooner, please complete the Form 3508S and return it to your lender.
- For requests of $50,000 or more, you should have received an email from your Loan Officer this summer that is unique to your loan including detailed instructions on the requirements for forgiveness submission through our portal. If you need us to re-send these instructions for any reason, email us at email@example.com and we will get back to you promptly.
For your awareness, these updates were made by the SBA to the program since inception:
The forgiveness period was extended up to 24 weeks from loan origination, but no later than December 31, 2020. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, loan forgiveness.
60% (originally 75%) of forgiven loan amounts are required to come from payroll expenses.
Should borrowers have a residual balance after the forgiveness process is complete, and their PPP loan cannot be repaid by the maturity date, the borrower can extend the term up to an additional 5 years.
Thank you for banking with Osgood Bank. We appreciate you.