Thank you for choosing Bank of Utah to process and service your Paycheck Protection Program (PPP) loan. We are pleased to be able to assist you and our community during this difficult time. We will be frequently updating this page, as information becomes available, to help you prepare to apply for PPP Loan Forgiveness.
As the PPP program evolves into the forgiveness phase of the process, changes to the guidelines and requirements are expected.
The SBA is not accepting forgiveness applications at this time. In a July 24, 2020 notice from the SBA, they plan to open their secure PPP Forgiveness Platform on August 10, 2020—subject to extension if any new legislative amendments to the forgiveness process necessitate changes to the system.
What can you expect?
After the portal opens, Bank of Utah will provided you with a secure, electronic loan forgiveness application form for you to complete. Bank of Utah will only accept forgiveness applications through our secure electronic submission form or delivered in person.
In the meantime, you can review the updates, application and instruction documents in the links below to help you prepare. We encourage you to review the instructions that accompany the SBA's forgiveness application thoroughly before you attempt to complete any of the application forms.
We will continue provide additional information as it becomes available.
A new law was signed on June 5, to address concerns surrounding the original PPP program. The Paycheck Protection Program Flexibility Act (PPPFA) addresses the following points:
PPPFA changes amount of loan needed for payroll to 60%. This increases the amount of funds available for other expenses, such as rent, mortgage payments, utilities, and interest on loans from 25% to 40%.
PPPFA extends time period to use funds from 8 to 24 weeks. While businesses will still need to spend the money on payroll and authorized expenses, you now have until the end of 2020 to do so. You can still apply for forgiveness after eight weeks if you prefer.
PPPFA pushes back a June 30 deadline to rehire workers to December 31, 2020 and eases rehire requirements. The payroll calculation used in the loan application still applies to the forgivable amount, however you now have until December 31, 2020 to rehire workers in order for their salaries to count towards forgiveness. Additionally, it adds exceptions for a reduced headcount if you are able to demonstrate an inability to return to the same level of business activity or demonstrate an inability to hire similarly qualified employees on or before December 31, 2020.
For loan applications processed after June 5, 2020, the PPPFA extends the repayment term from 2 years to 5. In the event that the loan or a portion of the loan is not forgiven, you now have five years at the 1% interest rate to repay the loan. For loan applications prior to June 5, 2020, the borrower and lender must mutually agree to any term extension.
The final ruling has been posted on the U.S. Department of the Treasury web site. You can read it in its entirety here: https://home.treasury.gov/system/files/136/PPP-IFR-Revisions-to-First-Interim-Final-Rule.pdf Additional revisions to this ruling are expected.
Loan Forgiveness Application (published June 17, 2020)
The SBA updated the Paycheck Protection Program Loan Forgiveness Application to streamline the forgiveness application process for certain borrowers. The “EZ” Paycheck Protection Program loan forgiveness application is a 3-page form requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
Frequently Asked Questions
When can you apply for PPP loan forgiveness?
A borrower may submit a loan forgiveness application at any time on or before the maturity date of the loan if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness. The SBA is not currently accepting forgiveness applications and may make changes to the current application rules. You may find it best to wait to apply, as future changes may impact your application.
What is the process for applying for PPP loan forgiveness?
Bank of Utah is developing a secure DocuSign forgiveness application form. We will notify you by email when it is ready. In the meantime, use the forms and instruction sheet links above to begin to prepare the information you will be needing. Bank of Utah will only accept applications securely submitted through DocuSign or delivered in person.
What is the timeline for review?
Once your application has been submitted and the bank has determined the application is complete, Bank of Utah will have 60 days to submit the application to the SBA. Full loan forgiveness is not guaranteed and is subject to review by the bank and the SBA. After the SBA receives the submitted application, they will then have 90 days to conduct a review. They can either approve the forgiveness, ask for more information, or approve a portion of the loan for forgiveness. If the SBA does not approve all or part of the loan for forgiveness, borrowers will have two to five years (depending on the PPP loan funding date) to repay the loan at 1% interest. If a borrower received the loan prior to June 5, 2020, they have to negotiate the five-year term with Bank of Utah.
What is my SBA PPP Loan Number?
Your SBA PPP Loan Number is the same as the Lender PPP Loan Number. This number will be provided to you in your electronic forgiveness form we will be sending you when the submission process begins.
As this program continues to evolve to address growing needs from our business community, we expect more revisions to come. Good record keeping and tracking the ever-changing regulations are critical. We encourage you to check our PPP loan information page regularly for updates as they are made available. Additionally, we have set up a team to review your application. You can contact them by email at email@example.com. They can help with general application questions. For other questions, we recommend that you consult with your tax advisor, legal counsel, or a bookkeeping service to assist your business if necessary.
In addition to the completed forgiveness application, you will need to provide the following additional documentation. You will be able to upload these documents through the electronic application we will be sending to you.
Required Payroll Documents: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:
- Bank account statements or third-party payroll service provider reports.
- Tax forms for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.
- If you checked only the second box on the checklist on page 1 of the Form 3508EZ instructions, the average number of full-time equivalent employees on payroll employed by the Borrower on January 1, 2020 and at the end of the Covered Period.
Required Nonpayroll Documents: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
- Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.
- Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.
As your local community bank, Bank of Utah is committed to supporting our customers, communities and employees for more than 67 years. We’re here to do all we can to help those adversely impacted by this pandemic.