SBA Paycheck Protection Program (PPP)
Level One Bank is proud to have helped over 2,000 local small businesses survive the COVID-19 pandemic through the financial support of the SBA Paycheck Protection Program (PPP).
If you have already been approved for a PPP loan and need to apply for loan forgiveness, please note that we are not yet accepting loan forgiveness applications. We will have an online portal available soon where you can easily submit your loan forgiveness application via our website.
If you have any questions or need assistance with your PPP loan, please contact your relationship banker or one of our banking centers.
PPP Loan Forgiveness Update 6/17/2020
On June 17, the SBA and Treasury released a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5. In addition to revising the full forgiveness application, the SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, AND did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, AND did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Details regarding the applicability of these provisions are available in the instructions to the new EZ application form found below.
Both applications give borrowers the option of using the original 8-week covered period (if your loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
PLEASE NOTE: We are not yet accepting loan forgiveness applications. An online portal is coming soon. Check back for updates.
PPP Flexibility Act
On June 4, it was announced that the Senate passed the Paycheck Protection Program Flexibility Act of 2020 (H.R. 7010), which provides a number of favorable changes to the PPP. We anticipate the President will sign the legislation into law.
Summary of the PPP Flexibility Act:
- Extends the Covered Period during which a Borrower may use funds from 8 weeks to 24 weeks.
- Raises the non-payroll portion of a forgivable covered loan amount from 25% to 40%.
- For loans originated after passage of the Act, the law establishes a minimum maturity of 5 years for loans with a remaining balance after forgiveness.
- Revises the payment deferral period from 6 months to until borrowers receive funds for forgiven amounts.
- Establishes that borrowers who do not apply for forgiveness have up to 10 months from the end of the covered period to begin making payments.
- Extends the program covered period from June 30 until the end of the year.
- Ensures full access to payroll tax deferment for businesses that take PPP loans.
- Extends the rehiring deadline to offset the effect of enhanced Unemployment Insurance.
Additional COVID-19 Resources
For information about hardship assistance programs offered by Level One Bank, and for the latest updates on banking center access and other resources, please visit our dedicated COVID-19 page.