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Paycheck Protection Program Update

posted on Friday, August 14, 2020 in Community News

PAYCHECK PROTECTION PROGRAM OVERVIEW

The Small Business Administration (SBA) and U.S. Department of the Treasury created The Paycheck Protection Program to provide customers relief to providing funding to help Americans employed by small businesses toward job retention and certain other expenses.

The Paycheck Protection Program (“PPP”) authorized up to $349 billion in forgivable loans to
small businesses to pay their employees during the COVID-19 crisis.  This program provided small business customers with funds to pay up to eight weeks of payroll costs including benefits as well as mortgage interest, rent and utilities. 

As of August 9, 2020 the SBA is no longer accepting applications for the Paycheck Protection Program.  For additional relief programs please visit the SBA website 

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PAYCHECK PROTECTION PROGRAM FORGIVENESS PROCESS

The SBA has provided information on the PPP loan forgiveness process. Northwest Bank has developed a step-by-step workflow for you to follow and complete your forgiveness application. The workflow will walk you through each step of the 3508EZ application process. 

For PPP borrowers with loans under $150,000 you have two options. The government is considering a shortened application process for PPP loans under $150,000. It is not guaranteed that they will pass this legislation however there is broad support for this provision of the new stimulus package.  

  • Option 1: Wait for new instructions from a possible fast track, forgiveness process. (You have until the maturity of your PPP loan to submit for forgiveness.) 
  • Option 2: Submit your PPP forgiveness application using the instructions listed below.    

For PPP borrowers with loans $150,000 or greater we recommend you complete the forgiveness process once you’ve reached the end of your Covered Period.  


3508EZ QUALIFYING FORM 

There are two possible forms to use when applying for forgiveness. Form 3508EZ will be used by most PPP borrowers.  Please complete the questionnaire to determine which form you will use. The regular form 3508 is a more complex document; for those borrowers who need to use it we suggest you seek professional assistance. The following process is for borrowers using the 3508EZ form.

COMPLETE THE 3508EZ FORM

PPP FORGIVENESS CHECKLIST

Below is a list of documents that each borrower must submit with its PPP Loan Forgiveness Application Form 3508EZ. Please complete and sign the necessary documents and submit to your Northwest Bank Business Banker.

FOR YOUR REFERENCE 

There are supporting documents that SBA requires that you maintain regarding your PPP loan. These documents are not sent to Northwest Bank but are retained by you for six years after the date of loan forgiveness. The SBA has reserved the right to review any PPP loan and if they select your loan you’ll be asked for your documentation.

SUBMIT YOUR DOCUMENTS

In this step you will send us your information.  We have created a secure method for you to submit it to us electronically. [Click here to submit your information electronically.] Your 3508EZ application and supporting documentation will be delivered to your lender securely. Alternatively, you can always drop off or mail us a copy of your complete forgiveness application packet. Remember, please do not email it directly to your lender as this is not the most secure method.

NEXT STEPS

We take the information and forms you’ve sent us and complete the process for you. We will review your application for accuracy and completeness then submit it to the SBA through the PPP Forgiveness Platform. We have 60 days to do this however we expect to get this done within days. Once we’ve submitted it, the SBA has 90 days to respond. When the SBA provides us with a status of your application we will let you know.


Our bankers are informed on the process and ready to answer your questions. Contact a Business Banker today for more details. 

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