Valley Back to BusinessWe’re committed to doing everything we can to help you get Back to Business. And it starts with helping you get your Paycheck Protection Program loan forgiven. We’ve assembled a list of Frequently Asked Questions about the PPP forgiveness process and answered them using the latest guidelines from the Small Business Administration. We’ll be updating this page regularly, so please check back often for up-to-date information.

    
Page last updated on September 3, 2021


  
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PPP Latest News and Updates

   
  

 

  • Valley Bank will start accepting PPP forgiveness applications within our new platform on Tuesday, July 27th. Please click here to submit your application.

  • For additional assistance completing your PPP Forgiveness application you can contact your local SBA resource. The SBA has provided training to these resources to enable them to assist you with your questions and your application. Visit https://www.sba.gov/local-assistance/find/ and type in your zip code to find a local resource.

  • Fraud Alert: A fraud alert was issued last week targeting small business owners through phishing emails that redirect victims to a spoofed COVID-19 relief webpage. Click here to learn more.

  • SBA releases a new separate FAQ document, Frequently Asked Questions (FAQ). The 10-page document divides the questions by topic: General Loan Forgiveness (3 FAQs); Loan Forgiveness Payroll Cost (8 FAQs); Loan Forgiveness Nonpayroll Cost (7 FAQs); and, Loan Forgiveness Reductions (5 FAQs)

  • Find frequently requested forms, documents and reports published by the SBA here. Learn more

  • You can find everything you need to know about the CARES Act from the U.S. Department of the  Treasury's website here. Learn more.


  
  

 

Apply for PPP Loan Forgiveness Today

   Apply for PPP Loan Forgiveness Today

If you previously received a PPP loan from Valley for $150,000 or less and have not applied for forgiveness yet, you should apply directly through the SBA right now.

    

    For loans of $150,000 or less
    For loans over $150,000

   

 
 

 

 


  

Change of Ownership

The SBA has issued a Procedural Notice regarding Paycheck Protection Program (PPP) loans and changes of ownership.  The SBA Notice outlines the required procedures for changes of ownership involving an entity that has received PPP funds.  Follow the links below to review the notice and what is required from you to start the process.     

    

SBA Procedural Notice - Change of Ownership
PPP Escrow Agreement Sale
Addendum to Stock Sale Agreement Acknowledging PPP Loan
Addendum To Purchase & Sale Agreement Acknowledging PPP Loan
Change of Ownership Certification

 
 

 
What documentation will I need to provide to apply for Forgiveness?
What you need

What documentation will I need to provide to apply for Forgiveness?

We can provide some critical information from your PPP Application that you will need to verify in order to complete your Forgiveness Application. These include the loan number, loan amount and the borrower name. However, it is up to the borrower to calculate the Forgiveness Amount and upload the required documentation.

SBA Sponsored PPP Loan Forgiveness Webinar
PPP Webinars

SBA Sponsored PPP Loan Forgiveness Webinar

Do you have questions about the PPP forgiveness application process? You’re not alone. Regional offices of the Small Business Administration will be hosting information webinars on various dates. Find available PPP forgiveness webinars below. *Search keywords PPP or Forgiveness.

    
  
  
  
   

Everything you need to know about PPP Loan Forgiveness

 

Please keep in mind that the following answers are reflective of Valley’s PPP loan forgiveness process. If you received
your PPP funding from another financial institution, be sure to reach out to them for information specific to their process. 

Forgiveness Portal Frequently Asked Questions

 

  • When can I apply for loan forgiveness?

    Please keep in mind that borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.
     
    For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved use of the forms. This date will be extended, and when approved, the same forms with the new expiration date will be posted.
      

  • How will I know if/when my loan is forgiven?

    You will receive two notifications. One will be an automated notice that includes the forgiveness letter from the SBA once the payment is received. The second will be Valley providing payment/payoff notification within a week.

  • What documentation will I need to provide to apply for Forgiveness? 

    We can provide some critical information from your PPP Application that you will need to verify in order to complete your Forgiveness Application. These include the loan number, loan amount and the borrower name. However, it is up to the borrower to calculate the Forgiveness Amount and upload the required documentation.

     

    Click here to view all required documentation for your PPP Forgiveness application.

  • What happens if my loan isn’t forgiven?

    For the balance of the loan that does not qualify for forgiveness, the borrower will need to make principal and interest payments based on the loan terms disclosed in the note signed at closing.





  

How to Prepare for PPP Forgiveness 

   

To get a sense of what will be required in the application, you can download 3 sample PPP Forgiveness Application options, the Form 3508, 3508EZ and the 3508S. Please note that we will not accept paper or PDF forgiveness forms via email or postal mail.

The EZ Form is designed to reduce calculations for those that qualify to use it. The 3508S Form can be used if your PPP loan is $150,000 or less. Please note, a borrower that, together with its affiliates, receiving loans totaling $2 million or greater cannot use this form.


 
   

3508EZ:

Shorter form that doesn’t require submission of a Schedule A

  

Download sample 3508 EZ application and instructions


 
   

3508:

Longer form for borrowers that are not eligible to us the 3508EZ or 3508S

  

Download sample 3508 application and instructions


 
   

3508S:

Form for loans that are $150k or less   

 

Download sample 3508S application and instructions