PPP LOAN FORGIVENESS
Funds covering qualified costs may be forgiven if at least 75% of the loan is used toward qualifying payroll costs. Any funds used for non-covered expenses WILL NOT be forgiven.
WHAT COSTS DO NOT MEET PPP LOAN FORGIVENESS REQUIREMENTS?
- Employee compensation for workers whose main residence is outside of the U.S.
- Cash compensation for any individual employee in excess of an annual salary of $100,000 (prorated as necessary)
- Compensation for workers who receive 1099s instead of W-2s
- Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020 — this includes the employee’s and employer’s share of FICA and Railroad Retirement taxes and income taxes withheld from workers
- Qualified sick and family leave costs for which credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act
HOW TO APPLY FOR LOAN FORGIVENESS
The SBA recently released the PPP Loan Forgiveness Application, which includes further information and resources to help make sure you qualify. In a nutshell, forgiveness is based on maintaining, or quickly rehiring, employees and salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
The loan forgiveness form and instructions feature several measures to reduce compliance burdens and simplify the forgiveness application process, including:
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- Options for calculating payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles, such as a biweekly or more frequent payroll period (if utilizing an alternative payroll covered period, no supplement payrolls are necessary)
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving the PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
As more details continue to become available, we will update the information here.
PPP LOAN FORGIVENESS APPLICATION
The SBA recently published a new EZ version (Form 3508EZ) of the forgiveness application requiring less documentation and fewer calculations than previously required.
Form 3508EZ applies to borrowers who meet any one of these three criteria:
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- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form.
If you have already submitted a forgiveness application with the original application you do not need to submit a new application on the revised form.
PPP LOAN FORGIVENESS EZ APPLICATION
WHEN SHOULD I SUBMIT MY PPP LOAN FORGIVENESS APPLICATION?
Within a reasonable time following the end of the optional 8 or 24 week time period from your PPP loan origination date.
WHERE CAN I LOCATE MY LENDER PPP LOAN NUMBER AND OTHER LOAN INFORMATION REQUIRED FOR THE FORGIVENESS APPLICATION?
The loan number, date, amount and other information are on the Promissory Note document signed at the PPP loan closing, and in most cases emailed to you after the loan closing. If needed, you may request a copy of your loan documents by emailing PPP@citizenswv.com.
WHERE CAN I LOCATE MY SBA PPP LOAN NUMBER?
Citizens Bank will provide you will your SBA PPP number. Please email PPP@citizenswv.com to obtain your loan number.
HOW DO I SUBMIT MY PPP LOAN FORGIVENESS APPLICATION?
- Upload your documents securely below.
- Securely email your documents to PPP@citizenswv.com.
- In person at Citizens Bank of West Virginia’s Elkins or Buckhannon offices.
- Mail to: Citizens Bank of West Virginia; Attn: PPP Loans/Commercial Loans; PO Box 1519, Elkins, WV 26241
WHEN WILL I KNOW IF MY PPP LOAN IS FORGIVEN?
Completed PPP Forgiveness Loan applications and supporting documentations are submitted to the SBA for processing within sixty days. Applicants will be notified via email regarding the approval status once we have received a response from the SBA.
WHAT IF I NEED ASSISTANCE COMPLETING MY PPP FORGIVENESS APPLICATION?
Please direct your questions to PPP@citizenswv.com and we will be happy to assist you with your application process.
SUPPORTING DOCUMENTS
SBA PPP DOCUMENT UPLOAD
