Paycheck Protection Program (PPP) Updates
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.
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
We’ve partnered with Lenders Cooperative to provide our borrowers with a streamlined, online PPP forgiveness portal. Using this portal, you’ll be able to:
- 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)
The video below previews the application process on the portal.
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.