1. LOAN PAYMENTS
The Flexibility Act provides that no payment is due on your PPP Loan until the earlier of:
- SBA remits the forgiveness amount determined to be due on your loan, if any (or determines that no forgiveness shall be granted); or
- ten (10) months after: (i) the end of the “Covered Period” or (ii) December 31, 2020 (whichever is earlier) if you do not apply for loan forgiveness by this date.
This means that your deferment period is extended and you do not need to make a payment at the end of the 6-month deferment period referenced in your PPP Note.
2. COVERED PERIOD
The Flexibility Act gives borrowers the choice to extend the “Covered Period,” (the period in which PPP Loan proceeds must be spent in order to be eligible for forgiveness) from 8 weeks to 24 weeks following the initial PPP Loan disbursement.
This means that you have up to 24 weeks to spend your PPP Loan funds to qualify for forgiveness.
3. USE OF FUNDS
The Flexibility Act reduces the minimum payroll requirement from 75% to 60% of the PPP loan funds spent during the Covered Period to qualify for forgiveness. Therefore, you may use up to 40% of your PPP Loan for PPP eligible purposes other than payroll.
This means that you may spend up to 40% of your PPP Loan on expenses including business rent, business related mortgage interest, or business related utilities and still qualify for forgiveness.
4. EXPANDED FORGIVENESS SAFE HARBOR
The Flexibility Act provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrower that have not been able to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19; and also provides a safe harbor to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
This means that you may still qualify for forgiveness, even if you had to reduce your workforce due to government directives.
WHAT SHOULD YOU DO NOW?
DO NOT make any PPP Loan payments until we have advised you that payments are due. We will contact you regarding any necessary modifications to your PPP Loan documents
DO visit our PPP Loan forgiveness portal using the button below to complete your PPP loan forgiveness application.
PPP Loan Forgiveness Portal
With the aim of easing the burden on business owners and maximizing the extent of their loan forgiveness, we have launched a PPP Loan Forgiveness Portal for Meridian Bank PPP customers. This interactive and user-friendly new platform will ensure easy and efficient processing of PPP loan forgiveness requests with the SBA, allowing users to:
- Securely upload and catalog documents
- Use the forgiveness calculator to estimate your forgiveness eligibility
- Electronically sign the final loan forgiveness application
- Streamline the process so you can get back to business
PPP Loan Forgiveness Portal Tutorial
The Paycheck Protection Program was part of The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). It was signed into law on March 27, 2020 and introduced a funding and loan program with the goal of preventing job loss and small business failure due to losses caused by the Covid-19 pandemic. SBA PPP loan forgiveness is the process by which the SBA will forgive either the balance or a portion of the loan based on the use of the funds and other qualifying factors.
You can apply for SBA PPP loan forgiveness by using our online portal! We are using this portal to have an online, secure way for you to view your loan amount, enter your forgiveness information, and view an automated calculation that displays your potential forgiveness amount.
You can log in by going to https://meridianbank.lenderscooperative.com/ – and entering your EIN/SSN and SBA loan number; you’ll then be asked to verify your loan amount in order to create a new log in (which you’ll then use going forward).
You can find your SBA loan number on your loan documentation. If you don’t have a copy of your documentation, it can be accessed via the original DocuSign email and link that was utilized for your electronic signature. The specific documents that list the SBA number are either the Promissory note and the PPP Loan Disbursement forms that you signed. Note If you don’t have a copy of the documentation or the DocuSign email – feel free to reach out to us, we’re here to help! You can email us at SBAForgiveness@MeridianBanker.com or call us at 1.833.920.0025.
In order to complete the forgiveness application, you must enter and verify the use of your SBA PPP loan funds. In order to complete this, you may want to have your business expense documents at hand – payroll, insurance, retirement, and lease/mortgage information may all be needed to complete the application.
Yes! You are able to save your current info anytime via the ‘Save Application’ button at the top-right of the portal. Once saved, you can then log out and return anytime – knowing that your data will remain there for you to update and add to up until you decide to submit.
Our online portal will support either SBA forgiveness application – the first page will ask which you would like to complete.
Yes! You can allow someone else to complete the forgiveness application – as long as they are aware of the information outlined above, they can also create a log in.
Your submitted application will be reviewed by Meridian Bank for completion and accuracy. We may send you a message to ask for a verifying document or clarification on your application. If all is well, we will send you a DocuSign link to electronically sign your final SBA 3508 EZ or 3508 form. Once completed, we’ll submit to the SBA on your behalf.
You can check the status of your application anytime by logging back into the portal via the link above. You’ll be able to see your application status on the left – and also check any messages we may have sent via a link at the top of the screen (near our logo).