PPP Loan Forgiveness
The Dime Bank's PPP Loan Forgiveness Electronic Portal has been opened since November 15, 2020. Around that time, you would have received an email from [email protected] (this email is for reference only.) stating that The Dime Bank sent you a PPP Forgiveness Questionnaire. The link in the initial email has expired, and at the end of March 2021 new emails were generated refreshing the link to The Dime Bank’s PPP Loan Forgiveness Portal.
Please read the information below. The Dime Bank’s PPP forgiveness team is available to assist you through this process. If you have questions, contact the following team members or your lender:
Linda Kelly - [email protected] - 570-253-1970 extension 7653; Direct Extension: 570-729-7686
Rory McGhie - [email protected] - 570-253-1970 extension 7134; Cell 570-493-8595
PPP Loan Forgiveness Landscape:
ALL PPP BORROWERS MUST FILE FOR FORGIVENESS. Recent legislation has produced a simple form for forgiveness of loans less than or equal to $150,000. If your loan falls into that amount you will utilize the 3508S form when completing your forgiveness questionnaire.
Borrowers that use the new SBA Form 3508S are exempt from any reductions in the borrower’s loan forgiveness amount based on reduction in full-time employees or reduction in employee salary or wages, and do not need to make these calculations on the form.
As we already know, the SBA Form 3508 and 3508EZ do not allow for these exemptions, though the 3508EZ form allows for a borrower to qualify for a safe harbor. You may click on the below links to see a full view of the current forgiveness forms available and their content. Once again, we encourage you to utilize The Dime Bank’s Forgiveness Portal to complete the information required for forgiveness.
We would like to restate, because of the PPP Flexibility Act (“the Act”), the deferral period for payment of interest has been extended. The Act replaced the initial six-month deferral period. The Act also allows borrowers to remit forgiveness applications up to the maturity date of their loan. The Act further states that if a borrower does not apply for forgiveness, the earliest date for commencement of payments for principal, interest, and fees is 10 months after the last day of the covered period. The SBA has advised lenders that a formal modification of the promissory note is not required to reflect the deferral terms as stated in the Act, however, if a loan balance remains on the loan after the loan forgiveness process is completed, the loan documentation will be formally modified. The current Interim Final Rule (13 CFR Part 120) regarding Loan Forgiveness echoes this statement. The current rule reads as follows: If the borrower does not apply for loan forgiveness within 10 months after the last day of the maximum covered period of 24 weeks, the PPP loan is no longer deferred, and the borrower must begin paying principal and interest.
If a Borrower does not file for forgiveness within sixteen months of the loan distribution date, interest will be billed. Below is an example of when an Interest Commencement Date might occur for a loan distributed on April 30, 2020 (these dates are for illustrative purposes only; this calculation will vary depending on the actual distribution date of the PPP loan):
|Loan Date:||April 30, 2020|
|Covered Period (“selected”):||24 Weeks|
|End of Covered Period:||October 15, 2020|
|Interest Commencement Date (if borrower has not applied for forgiveness):||August 11, 2021|
Some PPP loan borrowers also received an advance/grant from the Economic Injury Disaster Loan program (“EIDL”). Recent legislation discontinued the practice of the SBA reducing PPP Forgiveness Amounts by the amount of the EIDL grant. Therefore, your EIDL grant has no bearing on the amount of your PPP Forgiveness.
The PPP forgiveness can be complicated and its effect on borrowers may differ. For guidance we recommend you consult your Accountant, CPA, or Tax Professional.
The Dime Bank’s Forgiveness Process and Electronic Portal:
The Dime Bank’s forgiveness process via Electronic Portal (the “Portal”) is open to all borrowers.
The access process commences with an initial email from [email protected] (this email is for your reference only, please do not use this email for questions) with the subject line “The Dime Bank has sent you a PPP Forgiveness Online Questionnaire”, initially sent to you between 11/15 and 11/16 and resent at the end of March 2021. The emails have been sent to the email address we have on file for you. If you did not receive an email or if you would like us to grant access to the Portal to someone other than yourself (i.e., your Accountant, CPA, or Tax Professional), please contact Linda Kelly via email at [email protected] or via phone at 570-253-1970 extension 7653.
To access The Dime Bank Forgiveness Portal, you will need the following information:
- Recipient’s email address
- Business EIN or individual’s SSN
- SBA loan number (the SBA loan number is the loan number reflected in the loan documentation from The Dime Bank).
The process is presented to you in questionnaire form. One of the earliest questions is the selection of which form you are choosing. Please remember that the 3508S form can only be chosen by borrowers with loan amounts of $150,000 or less.
When to file for PPP forgiveness is the decision of the borrower. If you are inclined to postpone filing, please flag, or save the email from [email protected] (this email is for your reference only, please do not use this email for questions) so that you may retrieve it in the future. The link contained in the email will expire within 90 days of the date it was generated (again, refreshed links were resent late March 2021).
The questionnaire will be pre-populated with most of your loan information. Areas that need to be addressed and populated by the borrower are indicated with a red asterisk (*). As stated in the SBA instructions for each of the three forms, when applicable, the borrower is required to provide documentation to support their forgiveness amounts/calculations. The questionnaire provides for and requires documentation to be uploaded prior to submission. The current rules require a borrower to submit documentation substantiating the calculations reflected in the Forgiveness Application to its lender for Form 3508EZ and Form 3508.
The SBA shared the following list of required documentation:
- Payroll Documentation:
- For the selected Covered Period, bank account statements or 3rd party payroll service reports
- 940/941 tax filings for the selected Covered Period
- State & local employee wage reports
- Health insurance & retirement paid
- Account statements and receipts; or invoices and cancelled checks
- Payroll Documentation for Sole Proprietors:
- Bank account statement documenting the amount of cash compensation paid with proof of transfer of payment from business to self
- Non-Payroll Documentation:
- Mortgage Interest
- Account statements
- February 2020 and Covered Period and one month afterwards; or amortization schedule and receipts/cancelled checks
- Mortgage Interest
- Account statements
- February 2020 and Covered Period and one month afterwards; or lease agreement and receipts/cancelled checks
- Account statements
- Invoices February 2020 and Covered Period
- Receipts/Cancelled Checks/Account Statements
- Utility bill
- Insurance bill
If you prefer to file your forgiveness application via a non-electronic process, we ask that you please contact Linda Kelly via email at [email protected] or via phone at 570-253-1970 extension 7653 to make other accommodations.
Thank you for applying and receiving your Paycheck Protection Program (PPP) funds through The Dime Bank.
The Dime Bank’s PPP forgiveness team is available to assist you through this process. Please contact the following team members or your lender with any questions:
Linda Kelly - [email protected] - 570-253-1970 extension 7653, direct number 570-729-7686
Rory McGhie - [email protected] - 570-253-1970 extension 7134