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 dictates, loan amounts may be forgiven as long as:
- The loan proceeds are used for payroll costs, covered mortgage interest, rent and utility costs over the 8-week period after the loan is made; and
- Employee and compensation levels are maintained.
The SBA has released the application that you must complete in order to have your PPP loan forgiven. The form includes detailed information about the costs that are eligible for forgiveness and instructions for calculating those costs.
To qualify for forgiveness of your PPP loan, you will be required to keep track of exactly how you spend your loan proceeds and will need to provide certification to the Bank, along with verifying documentation, for the 8-week period beginning the date Bank of Utah made your first disbursement. This may not necessarily be the date on which you signed the loan note. The SBA has provided an option for you to calculate payroll costs using an “alternative payroll covered period” that aligns with your regular payroll cycles. You also have the flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 8-week period after receiving your PPP loan.
|Completed and signed Loan Forgiveness Application. Click here to download the application and instructions.
Be sure to refer to your loan documentation and use the exact names that appear in the loan documentation for the forgiveness application. Additionally, the SBA PPP Loan Number and the Lender PPP Loan Number are the same.
|Documentation verifying BOTH the number of FTE employees on payroll and the pay rates for the 8-week period beginning on the date of origination of the PPP loan (or the alternative payroll covered period), including:
- Payroll ledgers by employee
- Payroll tax filings that will be reported to the IRS; and
- State unemployment insurance filings
- Documents verifying any retirement and/or health insurance contributions
- Payroll ledgers by prepared by your PEO
Remember, at least 75% of PPP proceeds must be used for employee compensation.
|Documentation verifying payments on covered mortgage obligations, payments on covered lease (or rent) obligations, and covered utility payments, including:
- Cancelled checks;
- Transcripts of accounts; or
- Payment receipts;
- Other documents.
|Any other documentation deemed necessary.|
|8 weeks after loan closing,||You can begin to submit a request to Bank of Utah for PPP loan forgiveness, completing all required paperwork and submitting all required documentation. Bank of Utah has 60 days from receipt of your forgiveness request to make a decision regarding forgiveness.|
|6 months from loan closings,||80% of the unforgiven principal amount of the PPP loan, plus accrued interest, is due with any remaining balance of principal and interest due over the next 18 months.|
|2 years from loan closing,||Your final P&I payment is due (unless prepaid or forgiven; there are no prepayment penalties on PPP loans).|
PPP LOAN FORGIVENESS TOOLKIT
Accurate recordkeeping and bookkeeping is required to maximize your loan forgiveness amount. Keep diligent track of all eligible expenses and accompanying documentation for this 8-week period. We recommend that you consult with your tax advisor, legal counsel, or a bookkeeping service to assist your business if necessary. As we near the forgiveness period, Bank of Utah will be contacting you with additional information on how to submit your forgiveness information. In the meantime, if you have any specific questions, please reach out to your Bank of Utah loan officer.
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.