SBA Paycheck Protection Program Forgiveness
Up to 100% of your Paycheck Protection Program loan is eligible for forgiveness, meaning that you do not have to repay it, if you meet the conditions required by the Small Business Administration (SBA). The amount of forgiveness is based on the amount of loan proceeds that you use to cover payroll costs, utilities, rent and mortgage interest obligations over the 8-week period after the loan is disbursed (funded).
On May 15, 2020, the U.S. Treasury released an application for SBA PPP loan forgiveness. This information is the most recent guidance provided by the SBA and is subject to change. The details of the forgiveness program are still being finalized.
The information on this site is as of May 15, 2020 and is based on what we know today.
How BMT will Communicate
We will share new information as it becomes available with businesses who have a SBA PPP loan funded through BMT.
- Email will be our primary form of communication
- U.S. Postal Service
What Borrowers Can Do Now to Prepare
- Borrowers should visit the SBA Paycheck Protection Program website and U.S. Department of the Treasury CARES Act website for additional information.
- Read the Loan Forgiveness Instructions & Application to better understand requirements. This is for your information only. Do not email or mail the application back to us.
- Consider consulting with your accountant or attorney to address your specific situation and understanding of the requirements.
You will receive additional instructions from us in the coming weeks with information about submitting your request for loan forgiveness and required supporting documentation.
We request that inquiries on SBA PPP loan forgiveness are not directed to BMT branch staff or our Customer Care Center. The SBA PPP forgiveness process is highly specialized, and they do not have information to support forgiveness inquires.
WHAT IF MY LOAN IS NOT COMPLETELY FORGIVEN?
If your loan is not completely forgiven, the remaining balance, including interest, will amortize over 18 months. This will operate just like a traditional loan with monthly payments to the servicer or owner of the SBA PPP Loan.
What is the interest rate on a PPP Loan?
The interest rate will be 100 basis points or one percent.