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Paycheck Protection Program

Second Draw PPP Loans

 February 23, 2021

 
The purpose of this update is to answer a couple questions that many of you have recently asked the bank regarding the forgiveness process, specifically how long you have to apply and when the expedited form for loans below $150,000 will be available.
 
First, regarding how long you have to apply for forgiveness, the law allows you 10 MONTHS from the end of your usage time frame to apply for forgiveness. If you choose the 24 week period, this means you have almost 16 months from when you received the loan to apply for forgiveness. If you choose the eight week period then you have about 12 months from when you received the loan to apply, so please plan accordingly.
 
Second, with regards to availability of the expedited form, the SBA Portal’s ability to accept the updated 3508 forms will not be ready until March 5 (we assume the delay is because the SBA is busy with PPP 2 applications). We expect our online application to be ready shortly thereafter; we will send an e-mail with further information when it’s ready. As a reminder, the bank will only accept forgiveness applications via the bank’s online application. If you want to apply for forgiveness now, please contact your loan officer who will forward the link to you.
 
As always if you have any questions please contact your loan officer.

 

 January 19, 2021


The bank is now processing PPP 2 applications for customers who received PPP 1 loans from the bank and are customers of the bank. If you are interested please contact your loan officer who will send you a link for the application. As the bank has indicated in prior emails, this round will require more documentation and more work than the first round required.

The bank would like you to be aware the SBA will review these requests more thoroughly than round one applications. Most importantly, any applicant will have to attest that they are currently still affected by COVID-19 and need the funds. The following language is included in the SBA application: “The current economic uncertainty makes the loan request necessary to support the ongoing operations of the applicant”. Given the amount of fraud discovered in the first round and the resulting negative publicity, you can understand why the SBA will increase their scrutiny this time around. Also, when it comes time to forgive these loans the SBA has not provided what information will be required to prove the money was needed, so please bear these factors in mind when deciding on whether or not to request another loan.

For those of you who do apply,  please review the  FAQ link below which indicates the information required to support your request; the biggest change from the first round is the proof of a 25% decline in business.

As always if you have any questions please contact your loan officer.
Stay safe,
Norwood Bank


  To learn more about the Paycheck Protection Program, access tools and FAQ's visit the U.S. Treasury.