Based on the most recent release of guidance from the SBA, we have been notified that it is their intention to open an online portal to accept PPP forgiveness applications on or about August 10, 2020. The Bank has therefore targeted the same date to initiate acceptance of forgiveness applications notwithstanding any delays from the SBA.
As mentioned in our last update to borrowers, the Federal Government is reviewing proposed legislation that would establish a streamlined forgiveness process for PPP loans under a certain dollar amount. This legislation remains under consideration and may delay the rollout of the forgiveness process.
We would like to take this opportunity to provide a general overview of what you, the borrower, can expect during the forgiveness phase:
- Farmers National Bank has an established online portal for forgiveness applications to be completed and corresponding documents uploaded
- Borrowers will be invited to the portal based on the date of your PPP loan closing
- An informational package will be emailed to borrowers during the invitation process to assist with application completion
- A Farmers National Bank Commercial Loan Officer will reach out directly to borrowers to assist with questions regarding forgiveness
- Once the borrower has completed the application and uploaded required documents in the portal, all information will be submitted to the Bank
- The Bank will review the contents of the submission and request additional information from the borrower as needed
- The Bank will render a decision regarding the application, communicate the same to you, and, upon your concurrence will submit the forgiveness request to the SBA for approval
- Borrowers will be notified of approval decisions (Please note, should a portion of the PPP loan be determined as unforgiven, borrowers may contest the approval decision, a process is in place to assist you should this occur)
During the process should any variance or discrepancies arise, bank representatives will work closely with borrowers to maximize forgiveness amounts. It is our intention to process all forgiveness applications as efficiently as possible to obtain decisions from the SBA on or before December 31, 2020.
If you have any questions regarding whether it is more beneficial to remain in the eight week covered period or modify your loan and move to the twenty-four week covered period, please contact the commercial loan officer assigned to your County, they stand ready to assist you.
Please monitor your email for additional updates in the coming weeks. We appreciate your patience throughout this process and look forward to assisting you with obtaining loan forgiveness.
Robert A. Vernick
Senior Vice President
Chief Lending & Bus. Dev. Officer