PPP Loan Forgiveness

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Paycheck Protection Program (PPP) Loan Forgiveness 

as of October 4, 2021

For 2020 PPP Loan Customers: Payment notices for PPP Loan customers with 2020 PPP notes that have yet to be forgiven by the Small Business Administration (SBA) will be sent soon. By applying for loan forgiveness, PPP Loan customers may avoid future payments. Please find detailed instructions for the Loan Forgiveness process below. 

For 2021 PPP Loan Customers: If you received a PPP loan(s) in 2021, please feel free to submit your forgiveness application and supporting documentation at the conclusion of your “covered period” (8 to 24 weeks from the origination date of your loan).  

PLEASE NOTE: If you are submitting via email, please be sure to send your applications and supporting documentation SECURELY to pppforgiveness@armstrongbank.com.  If you have any questions about sending files securely, please let us know. We will need to send you an initial secure email for use in replying back to us before submitting any sensitive business information. Your security is our top priority!

Borrowers with PPP Loans totaling $150,000 or less:

Good news! On August 4, 2021, the SBA will launch a new, streamlined application portal called "Direct Forgiveness" to allow borrowers with PPP Loans $150,000 or less through participating lenders to apply electronically directly through the SBA. Armstrong Bank is a participating lender and has opted in to this simpler application portal process (as of 08/04/21).

1. Access the SBA's Direct Forgiveness Portal and click "Register to Start Your Application." 

2. Make sure to utilize the SBA's Direct Forgiveness Guide, which will walk you through the online portal process. Also, please review the SBA's Direct Forgiveness FAQ as an additional resource. 

3. Please be aware, if you choose to utilize the SBA's Direct Forgiveness Portal, all questions on this process will be directed to the SBA Direct Forgiveness Hotline number: 1 (877) 552-2692. 

OR
You can submit your completed 3508S application to your local Armstrong Banker in person, or email your application SECURELY to pppforgiveness@armstrongbank.com. If you have questions about how to send files securely, please let us know!
 

Borrowers with PPP Loans totaling more than $150,000, please follow the steps below to help you navigate your loan forgiveness process: 


Step One.


Determine your application form: 3508EZ OR 3508  

Each borrower must complete the appropriate application form (3508EZ or 3508) along with submitting all supporting documentation.

3508EZ Application Form

Businesses that meet the following guidelines may complete the 3508EZ form:
  • Self-employed and have no employees; OR
  • Did not reduce the salaries or wages of their employees by more than 25% and did not reduce the  number or hours of their employees; OR
  • Experienced reductions in business activity as a result of health directives from CDC related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%. 
Businesses that DO NOT meet the guidelines outlined above for the 3508S or 3508EZ forms must complete the 3508 full form:
 

 

Step Two.

Gather all required documentation & complete application

This will require certain payroll and expense documentation and proof of expense.  Without ALL of the required information, the application may be considered incomplete.  

What supporting documentation should be included?

  • Specific payroll document requirements that are detailed in 3508S, 3508EZ, or 3508 instructions.
  • Full-time equivalent (FTE) supporting information indicating the average number of FTE employees on your business payroll per month. 
  • Payroll tax filings (IRS form 941) for the coverage period chosen (8 weeks OR 24 weeks).  
    • Please do not submit your PPP Forgiveness application before your selected coverage period ends.  Applications submitted before this will be considered withdrawn and will need to be resubmitted at a later date.
  • Non-payroll document requirements that are detailed in 3508S, 3508EZ, or 3508 instructions (eligible payments from the 8- or 24-week loan covered period).  

Step Three.

Submit your application & documentation

Once you have compiled the necessary information and completed the appropriate application, you may submit your information to Armstrong Bank. Please respond to the previously received secure email from pppforgiveness@armstrongbank.com to ensure you are sending a SECURE EMAIL to Armstrong Bank. Please follow the instructions in the email that you receive. 

If you did not receive the previously sent secure email, please email pppforgiveness@armstrongbank.com requesting your initial secure email, and it will be sent to you as quickly as possible. 

Step Four.

Application processing

Once you have provided the completed application along with the necessary documentation, Armstrong Bank’s PPP Forgiveness Team will review, contact you for additional information if necessary, and upload your request to the SBA.  The SBA has been quite clear that they will require ALL of the supporting documentation in order to evaluate PPP Forgiveness.

Step Five.

SBA review

The SBA has 90 days from the date Armstrong Bank forwards your file to determine forgiveness. This is the reason that it is important to fully and accurately complete the appropriate application and provide ALL requested supporting documentation.

Step Six.

SBA decision

Armstrong Bank will notify you with the SBA's decision on the amount of forgiveness once we are advised.

How long does the process take?

Once your application is submitted to us, the forgiveness process may take up to 150 days: a maximum of 60 days for Armstrong Bank to review, followed by up to 90 days for the SBA to review. We will be in touch should further information be required. 

 

Questions?

Above are links to the applications (3508S, 3508EZ, and 3508) and their instructions.  Below are links to helpful resources including the SBA's FAQ's.

If necessary, it may be appropriate to also consult your CPA or accountant to navigate the process.  

 

RESOURCES & LINKS: 

 
PPP Loan Forgiveness FAQ (as of 10/7/20)
 
Armstrong Bank wants to provide you the most appropriate information to allow you to complete this important loan forgiveness process.  Nevertheless, please know that Armstrong Bankers cannot provide advice on interpretation of the SBA’s rules or guidance for loan forgiveness or how these rules may apply to the particular circumstances of your business. Please seek the advice from your legal and/or accounting professional(s) if you are unsure about the specifics of your application. Please note that the information provided here is generally taken directly from the SBA and/or the SBA Paycheck Protection Program Loan Forgiveness Application and is posted solely for your use. It is not intended to be comprehensive or all-encompassing. Please consult the Small Business Administration and/or U.S. Department of Treasury  PPP websites for information related to loan forgiveness and the PPP program. Guidance and rules directly from the SBA and/or the U.S. Treasury will supersede any information contained in this website or in anything that may conflict with the direct guidance mentioned.