PPP Loan Forgiveness
Starting on March 8, 2021, P1FCU will begin sending out emails to all PPP Borrowers with a PPP Loan of $150,000.00 or less to initiate the forgiveness process. We will send the email to the corresponding email address provided to P1FCU on the original PPP Application. This email will prompt the Borrower to verify three security questions:
- The email address provided on the original PPP Application
- The Business TIN (or SSN)
- The PPP SBA Loan Number on the Note
Once the security questions are verified, the Borrower may begin completing the Forgiveness Questionnaire and submit it for approval. If you are a Borrower with a PPP Loan of $150,000.00 or less and do not receive an email from P1FCU by March 15, 2021, to start the Forgiveness process, please contact a P1FCU Team Member at email@example.com.
The SBA released updated forgiveness forms on January 20th to meet its Economic Aid Act requirements. This includes the new PPP Forgiveness Form 3508S for loans $150,000 or less. However, the SBA has not yet updated its PPP Forgiveness software platform to accept the new data fields. The SBA announced it will make these platform modifications no earlier than Friday, March 5, 2021.
To ensure submissions to the SBA will be accepted by the SBA without errors, we are timing the submission of forgiveness forms by P1FCU for loans $150,000 or less to match the SBA’s update to their Forgiveness Platform.
“The Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) extended the deferral period for borrower payments of principal, interest, and fees on all 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 forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).” This extension of the deferral period automatically applies to all PPP loans and a formal modification to the promissory note is not required.
PPP Loan Forgiveness
August 10th was the first day that the SBA began accepting PPP Loan Forgiveness Applications. If you would like to start the PPP Loan forgiveness application, please reach out to P1FCU Business Services Team.