Extended Deferral Period for Loan Payments
The SBA has clarified the deferral period for PPP loan payments. For borrowers that apply for loan forgiveness, payments are deferred until the SBA provides Andover State Bank with the loan forgiveness balance (or a decision not to forgive the loan). For borrowers that do not apply for loan forgiveness, payments are deferred 10 months after the covered period ends.
Many of you have reached the end of your initial eight weeks of PPP funding. If you haven’t used up all your funds, there’s still time. The SBA has extended the coverage period to 24 weeks and has reduced the payroll cost requirement to 60%. As a reminder, PPP funds may only be used for payroll, rent, utilities and mortgage interest payments. You can review these provisions in the Paycheck Protection Program Flexibility Act of 2020.
Loan forgiveness applications and instruction guides are available to download below. You might be eligible to use streamlined loan forgiveness applications (forms 3508S or 3508EZ) instead of the full form. The instructions contain a list of documents to submit in addition to documents you must keep on file for six years.
The PPP loan process is continually changing. Please check back here for updates.
Application for $50K Loans or Less (Form 3508S)
If you received a PPP loan totaling $50,000 or less, you can use this simplified application. Form 3508S does not require calculations, only that you certify some statements. However, you still need to provide documentation verifying forgivable payroll and non-payroll expenses. To fill out this application, open it in your PDF viewer and click Fill & Sign from the tools pane on the right. Complete your application and save it until you’re ready to upload all your documents.InstructionsApplication
EZ Application (Form 3508EZ)
To use the EZ form, borrowers must meet one of the following conditions:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
Download the EZ application. In your PDF viewer, click Fill & Sign from the tools pane on the right. Complete your application and save it until you’re ready to upload all your documents.InstructionsApplication
To help you get started, here is a short list of documents you’ll need to round up. See your application’s instruction guide for details (page 2 in Form 3508S, page 4 in Form 3508EZ and page 6 in Form 3508).
- Bank statements showing employee compensation
- Tax forms that overlap covered periods
- Documentation of contributions to employee insurance and retirement plans (receipts, canceled checks or account statements)
- FTE documentation
- Documentation of payments toward mortgage interest, rent, lease and utilities
Andover State Bank will have up to 60 days to review these documents. After our review, the SBA has an additional 90 days to reject or concur with our decisions. All interest paid on forgiven loans will be the SBA’s responsibility, so this delay will not cost you. We will keep you updated and submit your documents as soon as we can.
Instructions for Uploading All Your Documents
- Accept Electronic Document Agreement.
- Click Upload Documents below.
- Enter your email, name and company.
- Drag and drop your application and required documents.
- Click the blue Upload button.