PPP LOAN FORGIVESS UPDATE
We are aware that Congress is debating changes to the PPP, including forgiveness, but wanted you to begin preparing with the information we have received to date!
Dear Valued Customer,
Thank you, first, for placing your trust in Roundbank to secure a loan under the Paycheck Protection Program (“PPP”). It is our honor to serve you and your business through this challenging time. We are writing you to provide you with an update on the forgiveness process of your PPP loan. The Small Business Administration (the “SBA”) has released the forgiveness application and related instructions (collectively, the “Forgiveness Application”), which can be found here.
As you know, all PPP borrowers are eligible to have all or some of their PPP loan forgiven if the funds are used appropriately and the borrower files a Forgiveness Application. In order to have your PPP loan forgiven, you are required to submit the Loan Forgiveness Calculation Form and Schedule A to us (as well as supporting documentation described below).
As outlined in the Forgiveness Application, borrowers are expected to gather substantial documentation to support their request for forgiveness of their PPP loan. Enclosed is a list of documentation you will have to submit to support payroll expenses, calculations of full-time equivalency (FTE) employees, and non-payroll expenses for the relevant eight-week period.
We also want to make you aware of the specific certifications that you will have to make when you submit the Forgiveness Application. In addition to the certifications required by the SBA, we will ask you to make additional certifications at the time you submit your application due to the volume of Forgiveness Applications that we will be processing. These certifications will include, among other items, that you understand you are solely responsible for verifying the accuracy of the contents of your Forgiveness Application and the adequacy of your supporting documents. While we are trying to help our customers by providing as much information as possible, we are not responsible for verifying the information contained in the Forgiveness Application or supporting documentation.
We expect that the SBA will supplement the Forgiveness Application with new rules and FAQs. We hope that additional information will be released soon, and we will try to provide that information to our borrowers as soon as it is available. In the meantime, the Forgiveness Application provides borrowers with a better understanding of the documents required to be submitted and the process for receiving forgiveness.
We encourage all customers to review the Forgiveness Application and to begin gathering the required documents necessary to seek forgiveness. We also encourage you to confirm your eligibility status for the PPP, as the SBA may direct our bank to disapprove your Forgiveness Application if the SBA determines that you were ineligible for the PPP loan. We will be able to accept your Forgiveness Applications after your Covered Period ends, as noted in the instructions in the Forgiveness Application.
We recognize that this Forgiveness Application is complicated, and you may require additional assistance from a third party in completing it. If you seek assistance from an accountant, legal counsel, or other specialist, their services will be at your expense and they will not be considered an agent under the PPP unless identified to us at the time you submitted your PPP loan application.
For a list of FAQ’s regarding PPP Loan Forgiveness, CLICK HERE
Please let us know if you have any questions or if there is anything else we can do for you at this time.