Paycheck Protection Program (PPP) Updates
Last updated 5/6/21
Paycheck Protection Program
The Paycheck Protection Program (PPP) is a federal relief program developed and overseen by the Small Business Administration (SBA), and executed by participating banks such as Bank of Canton. Borrowers who use PPP funds for certain eligible expenses can have that debt forgiven when program conditions are met.
On May 4, 2021, the SBA informed trade associations that PPP funding has been exhausted and that it would no longer accept new first draw or second draw PPP applications from most lenders. As a result, we are unfortunately no longer accepting new applications for first draw or second draw PPP loans.
However, we are continuing to accept forgiveness applications for existing PPP loans, and we encourage our borrowers to submit their forgiveness applications once they are able to do so.
The SBA extended the initial deferral period for principal and interest payments on PPP loans to ten (10) months after initial loan disbursement. Accordingly, Bank of Canton will continue to temporarily defer all billing for PPP loans. Borrowers will not receive a bill during the deferral period.
Deferral & Forgiveness
Current SBA PPP rules state that payments are deferred on PPP loans until each customer’s forgiveness application has been evaluated or the forgiveness window has expired, whichever comes first. In order for our PPP borrowers to have their loan debt forgiven, they must apply for forgiveness and have their application approved by us and, ultimately, the SBA.
Applying for Forgiveness
- PPP loan borrowers can apply for forgiveness using our streamlined online application portal. Using this portal, you can:
- Upload your information electronically
- Save your work and return later
- E-sign documents
- Submit questions to third-party CPA (we encourage you to discuss questions with your financial professional(s) as well)
For the best experience, we recommend using either Microsoft Edge or Google Chrome. Other browsers may not be fully compatible with all the features & functionality of the portal.Start Forgiveness Application
The videos below preview the forgiveness application on the portal. You may be asked slightly different or additional questions than those shown, depending on your specific circumstances.
- For loans of $150,000 or less:
- For loans greater than $150,000:
Monitor for Updates
Congress and federal agencies may continue to revise the PPP and publish additional program updates. PPP borrowers should continue to monitor for program developments, as changes may impact their loan and forgiveness amount. Bank of Canton will continue to follow all program requirements and SBA guidance for the PPP.