SBA PPP Loans and Forgiveness Update May 12, 2021
The PPP Funds most recently authorized on 12/27/2020 under H.R. 133: Consolidated Appropriations Act, 2021 [Including Coronavirus Stimulus & Relief] are now exhausted for most SBA preferred lenders. As of May 10, 2021, Liberty Bank is no longer accepting PPP applications.
- The SBA will continue to accept applications from participating Community Financial Institutions, which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries through May 31, 2021 or until funds are exhausted.
- The SBA reported as of May 21st, that there is approximately $2.5 billion in funds available for PPP qualifying through these entities.
To seek forgiveness, a PPP loan borrower may complete and submit on of the three SBA forgiveness forms:
- Form 3508 PPP Loan Forgiveness Application (Standard Application);
- The simpler Form 3508EZ PPP Loan Forgiveness Application (EZ Application);
- For 3508S PPP Loan Forgiveness Application (3508S) for loans of $150,000 or less.
Should you have questions regarding your PPP loan forgiveness, or to obtain a link to submit your forgiveness application on the forms discussed above, please contact your Relationship Manager directly.
SBA PPP Loan Forgiveness FAQs https://www.sba.gov/document/support-faq-about-ppp-loan-forgiveness
SBA PPP Forgiveness Factsheet https://www.sba.gov/sites/default/files/2020-10/PPP%20Forgiveness%20Factsheet-508_r1.pdf
Updated January 14, 2021
The Small Business Administration has just released guidance that the portal for new 1st and 2nd draw Paycheck Protection Program (PPP) loans will open for banks with total assets under $1 billion on Friday, Jan. 15. Liberty Bank will therefore begin submitting our queue of applications on Friday! The portal will open for larger banks on Jan. 19, 2021.
We invite you to apply through our streamlined loan process. For assistance please reach out to your relationship manager as soon as possible, or simply contact us on our main phone lines below. We look forward to helping you through these challenging times.
Poulsbo contact line: 360-779-4567
Bellevue contact line: 425-436-5705
Updated December 31, 2020
As you may have read in the news, Congress recently passed a roughly $900 billion emergency COVID-19 relief package, which includes an additional allocation of funding to the Small Business Administration (SBA) for a new round of the Paycheck Protection Program (PPP) loans, as well as money for other critical needs.
Here is a sample of what is included in this bipartisan legislation to support small businesses:
- $284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers.
- The maximum “second-draw” PPP loan amount is 2.5 times the average monthly payroll, capped at $2 million, and limited to small businesses with 300 or fewer employees that have sustained a 25 percent revenue loss in any quarter of 2020.
- Entities in industries associated with “accommodations and food services” may receive PPP loans of up to 3.5 times average monthly payroll costs.
- A process for borrowers to request an increased loan amount if regulations were updated, even if the loan has already been fully disbursed.
- Expanded forgivable PPP expenses, which include covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances not covered by insurance that occurred during 2020, etc.
- A simplified loan forgiveness process for borrowers with PPP loans of $150,000 or less.
Now that the COVID-19 relief package has been approved by congress and signed by the President, it likely will take the SBA a few weeks to implement the guidelines and procedures.
We understand how important these developments are to you and your business. Liberty Bank’s track record with the original rounds of PPP funding during 2020 was very good, if not the very best in the industry. You can count on us to be ready to receive applications from qualified and eligible borrowers as soon as the SBA is ready to accept them.
Please log in to our website at www.libertybanknw.com or follow us on LinkedIn for the latest updates. If we can assist you in the meantime, please do not hesitate to reach out to your relationship manager or call us at 425-436-5705 for Bellevue, or 360-779-4567 for Poulsbo.