Message Regarding PPP Loan Forgiveness

We want to start by saying “Thank you” for allowing us to be a part of your financial solutions through this trying time. We wanted to take a few minutes and start talking about the forgiveness side of the Paycheck Protection Program (PPP). We recognize PPP loan forgiveness is important to you and your business and that you may have many questions.

For starters, it is important that you understand what will be expected of you through this process. The United States Small Business Administration (SBA), which oversees the PPP, will ask us to verify certain information so that we may attest that you have met the qualifications for forgiveness.

Recently, they issued the Application for Loan Forgiveness along with clarification on how to document and identify costs as well as provided flexibility to the definition of the 8-week covered period.

To document the expenses above, you will be expected to provide the following along with your Application for Loan Forgiveness:

  • Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation
    paid to employees.
  • Tax forms that overlap with the Covered Period or the Alternative Payroll Covered Period (payroll tax filings using IRS Form 941, and State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported).
  • Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to
    employee health insurance and retirement plans.
  • Documentation showing:
    • The average number of FTE employee on payroll per month between February 15, 2019 and June 30, 2019.
    • The average number of FTE employee on payroll per month between January 1, 2020 and February 29, 2020; or
    • If you are a seasonal employer, the average number of FTE employees on payroll per month between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or a consecutive twelve-week period between May 1 and September 15, 2019.
  • For business mortgage interest payments, a copy of your lender’s amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period.
  • For business rent or lease payments, a copy of your current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period.
  • For business utility payments, a copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.

We want to take every possible opportunity to make sure you are prepared for the next step in this process. We have prepared a loan forgiveness workbook for your use. The Excel based resource will help you organize your information and will expedite the
Bank’s review of your application for forgiveness. Please do not hesitate to contact your Lender who has been working with you
throughout this process with any questions.

Again, thank you for the opportunity to provide financial solutions during this most difficult time we are all going through. We
look forward to working with you for many more successful years to come!

Sincerely,

Robert A. McGurk
President & CEO