News Blog

June 22, 2020 – We have recently received the following updates for borrowers regarding the PPP Forgiveness Application:

  • The Treasury reduced the requirement for payroll expenses from 75% to 60%.
  • They are offering a 24 week covered period to maximize your loan forgiveness.
    • Loans made prior to June 5th may elect to use the 8 week covered period or the 24 week covered period.
  • You have ten months from the end of your covered period to submit the application.
  • They provided an EZ application for those:
    • Who are sole proprietors or contractors, or
    • Employers who did not reduce wages or headcount during the covered period, or
    • Were unable to operate during the covered period at the same level of business activity as before February 15th, 2020, due to COVID-19 safety restrictions and did not reduce salaries or wages.

To read more about this, visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program. Revised applications and instructions can be found under the heading, “Loan Details and Forgiveness”.

Please note, we cannot accept applications at this time, as there is no avenue for the banks to submit the application to the SBA. We will notify you when this changes. In the meantime, please continue to keep good records of payroll and non-payroll expenses and check our website for further updates.

Bottom line: Wait, be patient, more to come. There is plenty of time.

Ben Grimstad
Bank CEO and President

 

 

Posted in COVID-19 by Decorah Bank on June 22, 2020.

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