Important Information Regarding PPP Forgiveness Application
Letter to Clients; RE: PPP Forgiveness 6.2.2020
To our clients:
Atlantic Capital is closely monitoring the SBA and Treasury guidance around the Forgiveness Application calculations and process. Here is some general information that we have learned thus far from the SBA.
- As originally written, Borrowers can apply for forgiveness as soon as eight weeks after their PPP loan was funded. However, (i) the SBA has not yet indicated when they will be ready to start processing applications, (ii) there is not a specific deadline for when the Forgiveness Application must be made (recall there are no payments due on PPP loans for the first six months), and (iii) there is legislation being considered in Congress that among other changes would extend this eight week “covered period” during which PPP proceeds may be used for authorized purposes in order to qualify for forgiveness.
- Once a Borrower applies for forgiveness and submits all required documentation, Lenders are required to review certain aspects of the application within 60 days and submit the application to the SBA. The SBA then has 90 days to review and approve the application.
- Similar to the original application process, Borrowers will be required to make certain certifications. Borrowers will be responsible for the accuracy of all calculations and statements made in the Forgiveness Application.
- The best way to start preparing for this process is to review the Forgiveness Application posted recently on treasury.gov and start gathering the documentation described in the application. Unless changed by legislation or further guidance, that documentation will need to be submitted by Borrowers to their Lenders.
- If your business uses a payroll service provider, you may want to contact that firm as many payroll providers are developing reports which could help with the payroll piece of the Forgiveness Application.
We will communicate further about our forgiveness process and any legislative changes. We will ensure our processes and documents include all final rules and guidance to provide you with accurate and timely information.
President and CEO
Atlantic Capital Bank