PPP Forgiveness Information
ANB Bank is excited to announce that we will begin accepting Paycheck Protection Program (PPP) Loan Forgiveness Applications on Monday, November 23, 2020. Due to the large number of forgiveness applications and the time required to process each application, we will be inviting borrowers to apply in stages over the next few months based on the origination date of your PPP loan. This staged approach will allow us to provide a higher level of service and more timely processing of applications.
When you are eligible to apply, you will receive an email containing a secure link to our online portal to complete your application. Finally, before you apply we would encourage you to consult your tax advisor regarding the potential tax implications related to loan forgiveness. Each situation is unique which is why we would recommend you consult with your CPA, tax advisor, or attorney for tax guidance related to your specific circumstances.
ANB Bank will continue to provide updates on the Paycheck Protection Program (PPP) as they become available.
Thank you for choosing ANB Bank for your Paycheck Protection Program (PPP) Loan. We appreciated the opportunity to assist you with your PPP Loan initially and are committed to working with you through the forgiveness process.
As you may know, the Small Business Administration (SBA) began accepting applications for forgiveness in mid-August. Since that time, SBA and Treasury have continued to make changes to their systems as well as the rules and regulations governing forgiveness. In addition, Congress continues to discuss legislative proposals that would further streamline the process and address significant problems with the forgiveness, including automatic forgiveness below a certain dollar amount, as well as the deduction of Economic Injury Disaster Loan (EIDL) advances from the amount of PPP forgiveness.
Over the past couple of months, ANB has been working within this changing environment to develop a process for accepting applications for forgiveness. In the coming weeks, we will begin inviting customers to apply for forgiveness through our digital application. We have a large number of forgiveness applications and each application requires significant time to process. Consequently, we will not be accepting applications from all customers at once. Instead, we will invite smaller groups of customers to apply each week for the next few months. This staged approach will allow us to provide a higher level of service and more timely processing of applications.
As you prepare to apply for forgiveness, please consider the following:
- Application Timing – It may make sense to wait for legislative action and/or further guidance from SBA before applying, depending on your situation. For example, borrowers that received an EIDL advance will have their forgiveness amount reduced by the amount of the advance. There are proposed bills in Congress that would change this so it may be to your benefit to wait for a potential legislative solution. There may be other scenarios where it would make sense to wait to apply as well. Keep in mind that you have until 10 months following the end of your chosen covered period (8 weeks or 24 weeks from the date your PPP loan disbursed) to submit your application. During that time, no interest accrues and no payment is due.
- Application Type and Required Information – SBA has three different applications depending on loan amount and borrower circumstances. ANB will provide an application portal to input your application and upload supporting documentation. However, it would be beneficial to determine which application you qualify to use and review the required information and documentation. We recommend you visit the Treasury Department’s website to review the applications, forgiveness instructions and Frequently Asked Questions.
- Payroll Expenses – Many customers, particularly those who chose the 24-week covered period, will be able to document that all of their PPP funds were spent on payroll. If that is the case, you do not need to complete information or provide documentation for other qualifying expenses. Limiting the amount of documentation provided will be easier for you and will reduce the processing time of your application.
- Payroll Documentation – If you use a third-party payroll service, they will likely provide reports that meet SBA’s requirements to document employees, eligible compensation, and total payroll costs for your covered period. Now would be a good time to reach out to them to obtain that documentation.
Please reach out to your ANB Lender for more information.
You are responsible for the accuracy of all information and certifications submitted with your application and used to determine your loan amount and eligibility. In addition, it is your obligation to understand the SBA’s PPP rules and whether your PPP loan qualifies for forgiveness. ANB is not responsible for the SBA’s decision regarding whether any PPP loan qualifies for full or partial forgiveness.
ANB Bank makes no representations or warranties of any kind, express or implied, with respect to the nature, accuracy or otherwise of the information provided on this webpage or with respect to the suitably of the information to your particular circumstances. All content on this webpage is for informational purposes only and is not intended to be a substitute for legal or other advice. You should seek legal and any other counsel you deem appropriate and refer to the SBA website for any information regarding the Paycheck Protection Program.