Loan Forgiveness Resources
As a locally owned bank, we are proud of our community and are committed to helping all businesses and organizations throughout the COVID-19 pandemic.
The Paycheck Protection Program is a Small Business Administration loan program aimed at helping small businesses who gave been impacted by COVID-19, by providing funds for wages, rent, utilities, and other eligible expenses. All or a portion of the loan may be forgiven depending on how the funds are used.
If you have any questions regarding loan forgiveness or require assistance for your loan forgiveness application, please contact our dedicated Paycheck Protection Program team at sbapp@community1st.com.
For more information on the loan forgiveness portion of the Paycheck Protection Program, visit the Small Business Administration website by clicking on the link below:
First Draw PPP Loan Forgiveness Terms:
First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60% of the proceeds are spent on payroll costs
Second Draw PPP Loan Forgiveness Terms:
Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60% of the proceeds are spent on payroll costs
How and When To Apply For Loan Forgiveness:
A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
Source: Small Business Administration, www.sba.gov 5/3/21
On July 23rd, 2020, Community First Bank | HFG Trust hosted a live webinar on loan forgiveness for the first round of Paycheck Protection Program loans.
With information and guidance from the U.S. Department of Treasury and the Small Business Administration, this information is accurate as of 7/22/2020.
If you have any questions regarding loan forgiveness, please contact one of our lenders today or send an email to sbappp@community1st.com.
A recording of this webinar can be found below:
