We want to thank you for giving First Fidelity Bank the opportunity to assist you with your SBA Paycheck Protection Program loan. We are proud to have helped in qualifying 1,847 loans that put $36.8 million into our local communities. These much-needed funds have given everyone that extra boost to make it through these trying past months.
Your next step in this process is applying for the forgiveness of your loan. We are here to help you through this step to ensure your loan is forgiven. If you do not follow through with the forgiveness process, your loan will become due on December 15, 2021.
To receive loan forgiveness, you must:
- Spend the forgivable portion within the covered 8-week or 24-week period. The period generally begins the first day you received your money for the loan.
- Spend 60% of the total loan amount on regular payroll, healthcare, and retirement costs.
- Spend the remaining 40% on other permissible costs:
- mortgage interest payments;
- rent payments; and
- utility payments.
- For some self-employed loan recipients, you are even more restricted in what you can spend your loan dollars on:
- owner compensation replacement;
- employee payroll costs; and
- interest payments on certain debts.
- You will be required to provide certain documentation for the covered period to apply for forgiveness, including:
- proof of payroll costs and benefits that were paid out;
- evidence of business rent paid;
- evidence of mortgage interest payments paid; and
- evidence of business utility payments paid.
You can access the 2-page PPP Form 3508S here. To qualify to use this simplified form, you must fall under one of the following three categories: 1. You applied as self-employed, an independent contractor, or a sole proprietor with no employees; or 2. You did not reduce salary or wages of your employees by more than 25% and you did not reduce the number or hours of employees; or 3. You did not reduce salary or wages for any employee by more than 25% and you experienced reduced business activity as a result of COVID-19. If you do not fall into one of these three categories, it doesn’t mean that you aren’t eligible for forgiveness – just that you must fill out a slightly longer application.
We know you might have questions about this process. We’re here to help you, so please call your local loan officer about your loan and the forgiveness process. Again, we appreciate your trust in us and giving us the opportunity to assist you through the SBA PPP loan program.