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PPP Loan Forgiveness

PPP Loan Forgiveness

You can carefully review the information provided by the Small Business Administration (SBA), the US Treasury:

FOR ALL BORROWERS $50,000 AND UNDER

We are pleased to share that the Small Business Administration just announced a simpler forgiveness process for PPP loans of $50,000 or less. We are working to implement the new application process into our online portal it and we will let you know more as soon as we can.

Over the coming weeks, we will email you with an invitation to submit your forgiveness requests. As part of this simplified process, you will certify that you received and used your loan funds according to the program requirements. Supporting documentation should still be included with an application, such as forgivable payroll and non-payroll expenses.

As a reminder, you will be able to request forgiveness up until your loan maturity date. However, to avoid having to start loan payments, you will want to apply for forgiveness within 10 months of the end of your covered period. That change was made to all PPP Loans with the Flexibility Act passed in June.

BORROWERS $50,000 TO $150,000

There is legislation that has been introduced in both the House and Senate that includes more provisions to simplify the forgiveness process. The Paycheck Protection Program Small Business Forgiveness Act seeks to simplify forgiveness of Paycheck Protection Program (PPP) loans under $150,000 with a one-page attestation form submitted to the lender by the borrower.

We are continuing to monitor the latest guidance and will email you when you can begin your request for forgiveness. If you should have any questions or concerns about our timeline for the forgiveness process, please let us know.

As a reminder, you will be able to request forgiveness up until your loan maturity date. However, to avoid having to start loan payments, you will want to apply for forgiveness within 10 months of the end of your covered period.  That change was made to all PPP Loans with the Flexibility Act passed in June.

BORROWERS $150,000 and over

You should have received an email in early September from Heritage Bank with information on how to start your PPP Forgiveness request and a link to your application.  If you did not receive an email or cannot find it, please contact James Miller at (320) 214-3940 or jmiller@heritagebankna.com.

 

Thanks again for choosing Heritage Bank as your trusted advisor for your Paycheck Protection Program loan.  We appreciate your business and look forward to ensuring an efficient forgiveness process.

For additional resources visit the SBA website.

The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic.

 

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