The Farmers National Bank of Emlenton appreciates the opportunity to service your Paycheck Protection Program loan. As you may be aware, new legislation was passed into law last week regarding changes to the program.
The new legislation makes the following changes to the Paycheck Protection Program:
- Confirms that borrowers that use less than 60% of their PPP loan amount for payroll costs during the forgiveness covered period will still be eligible for partial loan forgiveness – in other terms, you may utilize up to 60% of the PPP Loan Funds for payroll related expenditures and 40% on mortgage interest expense, rent, and / or utilities
- Extends the end date of the “covered period” for a PPP loan from June 30, 2020 to Dec. 31, 2020
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender
- Extends the loan forgiveness period from 8 weeks to 24 weeks. (For loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks)
- Clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the date SBA remits the forgiven amount to the lender
- Reiterates that the last day a lender can obtain an SBA loan number for a PPP loan is June 30, 2020
We look forward to assisting you with the forgiveness phase of the Paycheck Protection Program.
Warm Regards,
Robert A. Vernick
Senior Vice President
Chief Lending & Bus. Dev. Officer
NMLS# 977437
