Preparing for PPP Loan Forgiveness
Thank you for entrusting Valley First with your business’ needs and we value your commitment to supporting your employees and our communities. We’re getting many questions about the process of applying for PPP loan forgiveness.
Now may be the right time for many loan recipients to apply for forgiveness, and as such, the forgiveness application is now available. Please note the SBA is opening a simplified forgiveness form for loans with balances less than $150,000. That simplified form is now available inside our forgiveness application, but SBA is not likely to be ready to accept them until approximately February 5, 2021. Forgiveness applications for loans less than $150,000 submitted prior to that date may experience a delay in processing.
However, please remember each borrower situation is very different and only you, and professionals you may consult with, know when it’s appropriate. Here are important points for you to consider:
You should consult with a Certified Public Accountant (CPA) who may be able to further assist with record keeping, reviewing compensation levels and how those impact your ability to apply for loan forgiveness.
While Valley First is here to support you, each borrower’s situation is different and only a tax professional can advise on how each item impacts the ability to qualify for forgiveness.
It is also the individual member’s responsibility to understand the ability to qualify for forgiveness. The majority of forgiveness-related questions we receive are answered in this FAQ from the SBA.
When you do apply for forgiveness, it is at your own discretion. Valley First cannot consult on the appropriate time for your individual situation.
Please also remember that we cannot accept paper or emailed copies of the required documentation (see below for the list.) All documents must be submitted through the loan portal with the information provided in your loan confirmation.
Use these links for additional Information:
PPP Round 2
At this time we are taking applications for Round 2 of PPP Loans.
Additional information for second-time borrowers: In most cases, priority from SBA for these loans will be for first time borrowers. Application approval for borrowers who already have a PPP loan may take longer. Qualifications for the second PPP loan are similar to the first loans. In addition, businesses must also show a realized reduction in gross receipts of more than 25% compared to a similar previous time period. A borrower’s first loan does not need to be forgiven in order to apply for a second loan.
Please be sure to check your spam and junk folders after submitting your request.
We know the information on these loans is ever-changing and can be overwhelming. Since PPP Loans are a highly specialized product, your tax advisor and the SBA are your best sources of information. Valley First is a provider for these loans but cannot consult on individual situations due to specific regulations from the SBA.
SBA loans are subject to SBA eligibility guidelines and availability of funds under the SBA program. Funds are limited. Information related to the SBA PPP loan may change as updates are provided by the Federal government. Financing maximums and terms are determined by borrower qualifications and use of funds. Valley First is not responsible for errors or omissions by Applicant in completing the application. Valley First does not have control over the time or order in which SBA will review loan applications. Valley First is not responsible for delays in processing resulting from high volumes of applications or the submission of applications that do not include required documentation. Please redact or do not include personal identifiers, such as names and social security numbers or tax identification numbers of employees, if you send information by email. Valley First and its representatives do not provide tax advice. Consult an advisor regarding a particular financial situation. Payroll costs include: salary, wages, commissions, tips, employee benefits, state and local taxes assessed on compensation, and for sole proprietor/independent contractor this includes wages, commissions, income, or net earnings from self-employment. APR = Annual Percentage Rate. Interest accrues from date of loan disbursement. Membership eligibility requirements apply. Membership requires a Business Share Account opened with an initial $25.00 deposit plus a $5.00 one-time membership fee, for a total of $30.00. New Accounts subject to ChexSystems.