SBA's Payroll Protection Program - Now Open
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Updated: 12.23.2020
As of December 21st, Congress passed a new piece of financial assistance legislation that includes another round of the Payroll Protection Program (PPP). However, the legislation is still unsigned by the President and may not become law.
If or when the legislation is signed, it will take time before the program is fully defined. The SBA has not issued any guidance as to amounts, terms, or qualifying conditions. Once the new program's parameters are defined, we will send another email to inform you of its details.
Additionally, the legislation instructs the SBA to create a simplified PPP forgiveness application for small businesses whose PPP loans were less than $150,000. The SBA may or may not use the existing 3508S form that is currently being used for PPP loans less than $50,000. That has yet to be determined and we will inform you on this matter as well.
We understand that there are questions about another round of PPP and changes to the forgiveness application. Until further information is available, we are not able to answer questions about the new program and we cannot reserve funds or an application spot. Please continue to check your email for our next communication.
Middlefield Bank’s PPP Loan Forgiveness will continue with our staggered rollout. If you have yet to receive an email invitation to apply for forgiveness, you will over the next few months.
Updated: 12.1.2020
Middlefield Bank will have a staggered rollout for PPP Forgiveness Applications based on loan amounts and by loan dates to allow for processing speed and to have team members available to address and assist customers with any questions.
We understand that businesses are anxious to apply and there are a few common questions.
1. When is the deadline to apply for forgiveness?
The SBA updated their PPP Loan Forgiveness FAQs on 10/13 in response to the question about forgiveness application deadline they stated in questions 3 and 4: Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement. Loan payments are deferred for 10 months after the last day of each borrower’s loan forgiveness covered period.
Source: https://www.sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness
2. What about year-end tax filings?
The U.S. Treasury Department and Internal Revenue Service (IRS) on 11/18 released guidance clarifying the tax treatment of expenses where a Paycheck Protection Program (PPP) loan has not been forgiven by the end of the year the loan was received. Middlefield Bank is advising our borrowers to please speak to their tax accountant with any questions about year-end filings.
Source: https://home.treasury.gov/news/press-releases/sm1187.
3. What is needed to complete the application for those with PPP loans over $50,000?
Middlefield Bank will be using a secure online portal that you will use to enter your information it has the same fields and instructions that are used in the SBA PDF Forms.
Here are the links – Please review the first link below on Page 1 for the questions to help determine if you will use 3508EZ or just the 3508 Form:
SBA 3508EZ Form Instructions: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%20EZ%20Instructions%20%28Revised%2006.16.2020%29-508_0.pdf
SBA 3508EZ Form: https://www.sba.gov/sites/default/files/2020-10/PPP%20Forgiveness%20Application%203508EZ%20%28%20Revised%2006.16.2020%29%20Fillable-508_0.pdf
OR
SBA 3508 Form Instructions: https://www.sba.gov/sites/default/files/2020-10/3508-Instructions-PPP%20Loan%20Forgiveness%20Application%20Instructions%20%28Revised%206.16.2020%29-508_1.pdf
SBA 3508 Form: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20%28Revised%206.16.2020%29-fillable_0-508_0.pdf
4. What is needed to complete the application for those with PPP loans under $50,000?
Middlefield Bank will be using a secure online portal that you will use to enter your information it has the same fields and instructions that are used in the SBA PDF Forms.
For loans under $50,000, please review the 3508S form also referred to as the Simple Form, and the instruction sheet below:
SBA 3508S Form: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S-508_0.pdf
SBA 3508S Form Instructions: https://www.sba.gov/sites/default/files/2020-10/PPP%20Loan%20Forgiveness%20Application%20Form%203508S%20Instructions-508_0.pdf
Additional Resources for Payroll Protection Program:
