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 April 9, 2021


  
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PPP Latest News and Updates

  

 

  • 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

  • Thank you for your interest in a PPP loan. Currently, we are focused on completing all prior applications in process as we near the deadline for final PPP submissions. If you are still interested in submitting a PPP loan application, we advise you to contact your personal Valley Banker for assistance.


  
  
  • See more news and updates
    • 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.

 

 




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

 
 

 
Necessity Questionnaire FAQ's
FAQ's

Necessity Questionnaire FAQ's

The SBA has released a “Loan Necessity Questionnaire” for PPP borrowers that received loans of $2 million or more (together with its affiliates). Follow the link to review SBA Forms 3509 and 3510, our FAQ, and other helpful information on the subject.

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.

    
  
  
  
   

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?

    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?

    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.

  • 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.

     

    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.

  • 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 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