Valley Back to BusinessWe know 2020 has been a challenging year for your business. That’s why we’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 OCtober 9, 2020


  
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PPP Latest News and Updates

  
  • SBA announces simpler PPP forgiveness for loans of $50k and less. Learn More

  • 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.

  • The PPP loan forgiveness application forms display an expiration date of 10/31/2020 in the upper-right hand corner. This 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.

  • 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 seperate 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.

     

  
  

    

   
 
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.

Pre-Submission PPP Loan Forgiveness Checklist
Checklist

Pre-Submission PPP Loan Forgiveness Checklist

You have your PPP loan but are you ready to apply for forgiveness? Take a look at our checklist to help you prepare for your forgiveness application.

PPP Loan Forgiveness Calculation Workbook
Workbook

PPP Loan Forgiveness Calculation Workbook

We understand how important loan forgiveness is to you and your business and realize that the SBA guidelines and requirements may seem complex. That’s why we’ve created an easy-to-use excel workbook that will help you itemize and calculate the inputs required for your PPP Loan Forgiveness application.*This is not a required document and is only to be used to help prepare for the forgiveness application.

    
  
  
  
   

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.


 
  • When can I apply for loan forgiveness?

    Right now, we’re preparing our Loan Forgiveness Portal.  Once it goes live, we’ll email you to let you know when you can begin your PPP Forgiveness application. 
     
    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 do I apply for forgiveness at Valley?

    Depending on your funding date, you have received an email inviting you to register for Valley’s Forgiveness Application portal. You must register to be able to access the portal. Once registered and Valley opens the portal, you will be able to complete the application within the portal and upload the required documentation.

     

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

  • 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.

  • What is the Paycheck Protection Program Flexibility Act and what are the main changes?

    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.

     


   


    
 
    

How to Prepare for PPP Forgiveness 

   

You can now pre-register for PPP Forgiveness on our online portal. In the coming weeks you will receive an email from us about how to access our PPP Forgiveness Application portal. You will need this email to access the portal for the first time. 

To get a sense of what will be required in the application, you can download 3 sample PPP Forgiveness Application options, the For 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 $50,000 or less. Please note, a borrower that, together with its affiliates, receiving loans totaling $2 million or greater cannot use this form.
 

     

Download sample 3508 EZ application             Download 3508 EZ instructions

Download sample 3508 application             Download 3508 instructions

Download sample 3508S application             Download sample 3508S instructions

   
  

   
   

If you have not received your pre-registration email or have other questions, 

please contact us using the form below: 

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