• Did you know there are additional programs available, directly through the SBA? Some of the programs include the Shuttered Venue Operators Grant and the Restaurant Revitalization Fund. Click here to find out more information

• The SBA has released a “Loan Necessity Questionnaire” for PPP borrowers that received loans of $2 million or more (together with its affiliates). SBA Form 3509 (for-profit entities) or SBA Form 3510 (for non-profit entities) require the borrowers to provide additional information to support the certification that each borrower made as part of its PPP loan application

• For additional assistance completing your PPP 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)

• The SBA has provided important resources, guidance and loan options for businesses during these challenging times.  You can view this information here. Learn more

• 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.

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.

Borrowers will need to use the link in the email they received from Valley in order to access the application portal. Once you have access to the portal, you can apply for forgiveness electronically.

You can also designate another individual to have access to the portal to assist you with the preparation of the application if you wish.

No, Valley will not accept paper or e-mailed applications. Borrowers must register and submit their application through our easy-to-use online portal.

We have 60 days from the receipt of a completed Forgiveness Application to review and submit to the SBA. The SBA has 90 days from receipt of that application to confirm the Forgiveness amount.

To help you itemize and calculate the inputs required for your PPP Loan Forgiveness application, simply use our PPP Loan Forgiveness Worksheet. 

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.

No documents are required to be submitted with the Form 3508S simplified forgiveness application   

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

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.

Under the PPP Flexibility Act, for loans made before June 5, 2020, borrowers can chose an 8-week or 24-week covered period.   This extension of the “covered period” gives borrowers significantly more flexibility to utilize PPP loan proceeds in accordance with the purpose of the program.

If you closed prior to June 5, 2020 and have chosen to adopt the 24-week “covered period” then principal and interest on your PPP loan will be deferred until the earlier of:

• When the SBA remits the forgiveness amount on your loan to Valley (or notifies Valley that no loan forgiveness is allowed) or:

• 21 months from origination date of the loan

If your original loan documents suggest a specific date for you to begin remitting payments, you can ignore this for now, unless you have already applied for and been granted forgiveness.