Skip to main content
I'M HERE FOR

Paycheck Protection Program (PPP) Loan Forgiveness

October 9, 2020
Update

We would like to provide you with another update regarding the PPP Forgiveness program. We are in the process of finalizing our Online Portal to accept forgiveness applications. This portal will enable our customers to complete and sign their application electronically and they will also be able to upload all supporting documentation. The portal is anticipated to be active within the next few weeks. Once the portal is active, the bank will begin to contact each of our PPP clients via email to invite them to submit their forgiveness application.

Additionally, we received some good news today. There has been a change to the program which will make the forgiveness process significantly easier for PPP loan amounts of $50,000 and less. This new two-page application (Form 3508S) was made available today from the SBA along with three pages of instructions.

If your loan amount is $50,000 or less and you are using the new 3508S form, you are exempt from any reductions in loan forgiveness based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages that would otherwise apply.

Please continue to watch your email and check our website for further updates. We thank you for your patience as we navigate through this new and ever-evolving PPP program.

You can also check the following resource for the most up-to-date information:

icba.org/news/Crisis-Preparedness/coronavirus-response/ppp-and-lending
sba.gov

home.treasury.gov  

In the meantime, if you have any questions or concerns, please send an email to:  [email protected].

June 22, 2020
Update

On June 16, the U.S. Small Business Administration (SBA) and Treasury Department released updated Paycheck Protection Program loan-forgiveness applications implementing PPP Flexibility Act reforms and additional guidance on the Paycheck Protection Program (PPP). However, the ICBA (Independent Community Bankers of America) continues pressuring the agencies to simplify loan forgiveness.

The agencies issued a revised full forgiveness form and new EZ application form requiring less calculation and documentation as well as updated instructions for the regular Form 3508 and Form 3508EZ.

 The new EZ form applies to borrowers that:

  • Are self-employed and have no employees, or
  • Did not reduce their employees' salaries or wages by more than 25 percent and did not reduce their employees' number or hours, or
  • Experienced reductions in business activity due to health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25 percent.

The SBA also issued a new interim final rule implementing PPP Flexibility Act reforms, including updates to the forgiveness covered period. Both applications allow borrowers to use the original eight-week covered period (for loans made before June 5) or an extended 24-week covered period authorized by the PPPFA. 

Meanwhile, the Independent Community Bankers Association continues to urge community bankers and small business owners to encourage the Treasury and SBA to enact additional reforms to simplify the PPP loan forgiveness process further.

However, please note that Itasca Bank is still not in a position to receive and approve applications for loan forgiveness as we await final guidance from the SBA and the Treasury.

At the appropriate time, you will submit all forms and supporting documentation to request forgiveness of the loan to us at Itasca Bank & Trust Co. The PPP Loan Forgiveness Application (see below) provides a detailed list of what must be submitted, including all forms and supporting documentation. The preferred method to submit all documentation will be via e-mail. Send to [email protected]. We will review and verify it, then send it on to the SBA on your behalf.

Continue to check this page regularly for updates. Make sure to also check the following resource for the most up-to-date information:

icba.org/news/Crisis-Preparedness/coronavirus-response/ppp-and-lending

sba.gov
home.treasury.gov  

In the meantime, if you have any questions or concerns, please send an email to:  [email protected].

Sincerely,

John J. Hunt
Senior Vice President & Chief Loan Officer

ASK US A QUESTION

Have a question about ? Send us a quick message and we can get back to you.

* Indicates Required

chat

We Speak Polish

Mówimy po polsku

chat

We Speak Spanish

Se Habla Español