Paycheck Protection Program
If you were a recipient of a PPP (Paycheck Protection Program) loan from Macon Bank and Trust Company you are nearing the end of your original 8 week period following origination and have been awaiting instructions on how to handle the forgiveness phase of this loan. This is a developing process with the SBA and Treasury, and we, at Macon Bank and Trust Company, remain committed to providing you with timely but accurate updates. The purpose of this email is to provide you information as to where we are to date and the most recent changes in legislation. On June 5, 2020, the Paycheck Protection Program Flexibility Act that amends some provisions of the PPP program was signed into law. Below is snapshot of some of the recent changes and a link to all information concerning the PPP program.
- Extends the loan forgiveness period from 8 weeks after loan disbursement to 24 weeks or December 31, 2020 – the earlier of the two. *For loans made prior to June 5th, 2020, the borrower has the option to keep the original 8 week time frame.
- Provides additional flexibility by changing the 75/25% required payroll-to-nonpayroll cost expenditures to 60/40%
- Allows for additional provisions that will provide a “safe harbor” and avoidance of potential reductions to forgiveness due to the inability of a business to meet FTE levels as a result of the ongoing pandemic.
We encourage you to take this additional time to test your allocations and spending to ensure they meet all requirements as set forth by the SBA and Treasury. In addition, we recommend you begin collecting documentation for the proceeds spent in the approved categories – payroll costs, costs related to health care benefits, mortgage and/or other business interest payments, rent payments, and utility payments. Once the final forgiveness application has been issued and guidance from government agencies provided, Macon Bank and Trust Company will begin accepting these applications. As always, Macon Bank and Trust Company is here to help our customers through this difficult time. Please feel free to reach out to your loan officer with any specific questions or concerns.