PPP Loan Forgiveness Update from CNB Bank
Greetings from CNB Bank-

Thank you again for choosing CNB Bank for your Paycheck Protection Program (PPP) loan. 

Our May 22 nd communication provided you with the Loan Forgiveness application and an update that we were working on a solution to make the forgiveness process easier for you. We are pleased to announce we have purchased a cloud based application and it will be available to you, free of charge. This will provide you with the platform to complete your loan forgiveness application electronically and securely transmit the necessary supporting documentation. You asked for e-sign capabilities and we heard you! With this platform, you’ll be able to e-sign and submit. More information on this simplified process will be provided by CNB Bank in the coming weeks.

On June 5 th , the Paycheck Protection Program Flexibility Act of 2020 was signed into law. We encourage you to review the bill, but here are a few notable items from the legislation:

·           Extends the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
·          Lowers the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
·          Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements 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 worker or customer safety requirements related to COVID–19.
·          Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
·         Extends the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).

To say this process has been complex is an understatement. Please continue to visit the US Treasury and SBA websites and speak with your accountant and legal representative with any further inquiries. 

Please know we’re working through this quickly changing process together and have you in mind with every step. 



Mark D. Harrell

We’ll get through this, learn a great deal, and be better on the other side!

101 S. Washington Street | PO Box 130 | Berkeley Springs, WV 25411
20 W. Washington Street | Hagerstown, MD 21742  
304-258-7392 Office | 301-491-4543 Cell