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PPP - Forgiveness

SBA PPP Program

SBA PPP Loans

For the most up to date information, please visit the SBA PPP website and the US Treasury Website.

Forgiveness
SBA Paycheck Protection Program

(Updated November 19, 2020)

  • SBA has issued updated versions of the PPP forgiveness applications (3508, 3508EZ, and 3508S) with a new expiration date of 11/30/2020. All new applications must use the most current version available. Links to the most current applications are available below and also on our page dedicated to loans $50K and under.
  • The Bank has 60 days after we receive a complete application and all the required documentation to decide on Loan Forgiveness
  • The SBA has 90 days to make a decision on forgiveness after the Bank has made its decision and uploaded the documentation.
  • The Bank will inform you if any additional documentation is required for a Forgiveness decision and prior to uploading to the SBA Portal.
  • It is critical that your Forgiveness Application is 100% complete and accurate. If dates, loan numbers, loan amounts, etc. are incorrect you will be asked to redo the application. The SBA Portal is requiring 100% accuracy.
  • The Bank may not assume or change anything on your Application. We are required to input the Application data as presented and required to upload your application at the time of forgiveness submission.
  • You may submit for Forgiveness once your funds are exhausted. See Forgiveness Application(s) and instruction(s) below for documentation needed to upload.

Loan Payment Information

  • No loan payments are required during the Forgiveness Process.
  • Per the SBA, you have ten months from the end of your Covered Period to apply for Forgiveness (“Forgiveness Period“).
  • Your first payment (if applicable) will be due as follows:
    • 30 days after your Forgiveness Period, if you have not submitted an application for forgiveness, or
    • 30 days after the Bank receives the SBA’s decision on forgiveness and funds if any if your loan has not been forgiven in whole.
  • If applicable, the Bank will notify you of your payment amount and when your first payment is due.

Change of Ownership within an entity that has received a PPP loan

  • SBA Approval may be required prior to a change of ownership for an entity that has received a PPP loan if your PPP Note is not fully satisfied.
  • If SBA Approval is required, SBA will review and provide a determination within 60 calendar days of receipt of a complete request.
  • If you are considering a change of ownership and have an outstanding PPP loan please contact the Bank as early in the process as possible at SBAServicing@FresnoFirstBank.com so that we may work with you to determine if SBA Approval is required.
  • Please refer to the SBA Notice for additional details outlined by the SBA.

$50K and Under Loans

Getting Started

  1. Complete your application and organize your relevant supporting documentation
  2. If you have not yet accessed the SECURE email the Bank sent providing you with your loan numbers required to complete your application, please email SBAPPP@FresnoFirstBank.com. 
  3. Upload your application and required supporting documentation to our online portal via DocFox as per your application instructions. If you are unable to locate the invite to our online portal, please check your junk/spam folder before contacting us at SBAPPP@FresnoFirstBank.com. If your link is expired please contact us at the same email address mentioned above. The bank will not be emailing you to provide you with a list of documentation to upload.
  4. Fresno First Bank will review your application and documentation. We will contact you if there is any missing documentation to complete your application for Forgiveness.
  5. Once our review is complete you will be notified of the Bank’s decision on Forgiveness, at which time Fresno First Bank will submit the Forgiveness Application to SBA.

If you have received an invitation to the portal or are preparing for forgiveness where do you start?

  • First, you must decide which application is applicable for your loan forgiveness request.
  • To qualify for the 3508EZ application you must be able to answer “yes” to at least one of the following:

The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).

The Borrower did not reduce the annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020, and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020, and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020, if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020. Also, ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused. See 85 FR 33004, 33007 (June 1, 2020) for more details.

 

The Borrower did not reduce the annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020, and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020, and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

If you can answer “yes” to at least one of the three statements above, complete SBA Form 3508EZ in accordance with the instructions below.

SBA FORM 3508 EZ
Document

 

Otherwise please complete SBA Form 3508.

 

SBA FORM 3508 Application
Document

Docfox

Docfox FAQ’s

  • You cannot upload more than one document to each category in DocFox – Please scan/merge relevant documents together or upload documents in the “Additional Document” categories.
  • Due to the system’s security features, you cannot view documents once they are uploaded.
  • After you successfully upload a document you will see the message “Being Reviewed”. You will not receive a confirmation email saying you submitted documents.

What Happens After you Submit your Application

  • Your documentation is checked. If errors are noted or questions arise when reviewing the Forgiveness documentation provided, Fresno First Bank  will contact you.
  • You will receive a notification from the Bank within 60 days after receipt of your COMPLETED package. This notification will indicate the status of your application as either approved in whole, approved in part or denied.
  • Once a decision has been reached, the request will be submitted to the SBA. SBA is then allotted 90 days to review the request and send the forgiven amount to the Lender to settle the loan balance.
  • The SBA and US Treasury reserves the right to audit any SBA PPP Loan application. If your loan is being audited by the SBA you will be informed by the Lender and additional information will be requested at that time. If your loan is being audited, a decision on forgiveness will be delayed.
  • Please be advised that you are required to retain all PPP Loan records for up to 6 years after the loan is forgiven or paid in full.

Application FAQs

Q. How do I calculate my covered period date ranges?

A. Covered period dates must start from

    • the date of disbursement (date you received the PPP funds).
    • The covered period is either 24 weeks (168 days) or 8 weeks (56 days).
    • Your covered period will never start and end on the same day of the week.
    • Please note that even if you do not need the full 8 or 24 weeks to exhaust your funds your application should still include a covered period date range of either 8 or 24 weeks.

Q. If I use an alternative covered period do I still need to input the Covered Period date range?

A. Yes – if you use an alternative covered period for payroll calculations you must still include the covered period date range. Both the covered period and the alternative period must be the same time period, either 8 weeks or 24 weeks.

Q. I cannot locate my Bank and SBA loan numbers for the application. What do I do?

A. Your Application must include both your Bank and SBA Loan numbers. Secure emails were sent to you with this information. If you are unable to locate this information, please contact us at SBAPPP@FresnoFirstBank.com.

Q. How do I substantiate the payroll amount on my application?

A. Payroll calculation must be substantiated with payroll reports. If you state your payroll is $100,000, we are looking for $100,000 in payroll support. If payroll is made up of several items please provide us a summary so we know how it was calculated.

Q. For what time periods do I provide documentation of my payroll and non-payroll amounts?

A. Please keep documentation to only eligible costs for forgiveness during your covered period. Some non-payroll items may require invoices from Feb 2020 or invoices through one month after the end of your covered period (or use of funds). Please refer to the documentation requirements for each particular application.