Here’s important information about your Payroll Protection Plan (PPP) loan at Oxford Bank & Trust -
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PPP borrowers should begin requesting loan forgiveness by mid-August; Oxford Bank is ready to provide assistance

News about PPP loan forgiveness

The Small Business Administration (SBA) has been working to reduce the burden of filing for forgiveness of PPP loans.  They have prepared a three-page “EZ” PPP loan forgiveness application that requires less documentation and calculations.

The PPP Flexibility Act was recently passed by Congress.  This act is intended to help borrowers with program forgiveness.  There are several beneficial changes including

  • Permitting borrowers that use less than 60 percent of their PPP loan amount for payroll costs during the forgiveness-covered period to still be eligible for partial loan forgiveness;
  • Extending the end date of the “covered period” for a PPP loan from June 30, 2020 to Dec. 31, 2020
  • Extending the loan forgiveness period from eight weeks to 24 weeks
  • Clarifying that if a borrower submits its forgiveness application within 10 months of the end of the loan agreement period, the borrower will not have to make any payments on the loan before the date the SBA remits the forgiven amount to the lender
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What this means to PPP borrowers

These changes will assist PPP recipients to more easily obtain loan forgiveness.

What is the next step?

Because the rules are changing on a frequent basis customers should start requesting forgiveness starting in mid-July.  By that time the SBA should have put their program rules in order.

   

   

Here’s how to get started

Become familiar with the updated SBA forgiveness application form available on the SBA’s website.

You won’t need to complete the form.  Oxford Bank will help you with that.  However, use the form as a guide to organize documents you will need including

  • Verification of the number of employees on your payroll
  • Employees’ rates of pay
  • Payroll documentation i.e. cancelled checks, payment receipts, documentation of accounts
  • Documentation of mortgage, lease and utility payments

How Oxford Bank will help

Oxford’s lenders stand ready to assist you in completing the required form and to advise you on the documentation you’ll need to obtain the greatest amount of loan forgiveness.  Once the program rules have been set and Oxford Bank is ready to accept applications for forgiveness, we will contact you directly through our forgiveness platform.  When you receive the email, contact your lender should you have any questions. 




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