The Dime Bank's Paycheck Protection Program ("PPP") Loan Forgiveness
If you received a PPP borrowing through The Dime Bank during either the 2020 or 2021 program, you may apply for forgiveness at any time. To start the forgiveness process, please contact either Linda Kelly at firstname.lastname@example.org, 570-729-7686 or Rory McGhie at email@example.com, 570-253-1970 ext. 7134.
If your PPP loan is equal to or less than $150,000.00 you have two options available to apply for forgiveness. You can choose either The Dime Bank's PPP Loan Forgiveness Electronic Portal or the SBA Direct Forgiveness Platform. To initiate The Dime Bank’s PPP Forgiveness Electronic Portal please email Linda Kelly at firstname.lastname@example.org and we will generate an email that is delivered to you from email@example.com (this email is for your reference only, please do not use this email for questions). The email links you to our forgiveness questionnaire and starts you on your forgiveness process. The alternative option is to utilize the SBA Direct Forgiveness Platform. Regardless of which method you choose to use, your forgiveness application is first reviewed by The Dime Bank’s PPP team, and if everything is in order, The Dime Bank submits the application to the SBA and the SBA decisions your forgiveness status.
If your PPP loan is greater than $150,000.00 the SBA Direct Forgiveness Platform is not an option. Please contact Linda Kelly and we will generate an email that is delivered to you from firstname.lastname@example.org (this email is for your reference only, please do not use this email for questions). The email links you to our forgiveness questionnaire and starts you on your forgiveness process.
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@example.com - 1-570-253-1970 extension 7653; Direct number: 1- 570-729-7686
Rory McGhie - firstname.lastname@example.org - 1-570-253-1970 extension 7134; Cell 1-570-493-8595
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 $150,000.00. 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. Nor do they need to submit substantiating documentation with their applications. All PPP borrower documentation must be retained by the borrower and if the SBA calls for a review of a forgiveness application, readily available to submit to the SBA.
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.
PPP Loan Forgiveness Application Form 3508S.pdf (size 473.06 kb) Revised January 19, 2021
PPP Loan Forgiveness Application Form 3508EZ.pdf (size 697.47 kb) Revised January 19, 2021
PPP Loan Forgiveness Application Form 3508.pdf (size 956.21 kb) Revised January 19, 2021
The terms of the 2020 PPP borrowings were amended as a result of the Flexibility Act (“the Act”), the deferral period for payment of interest was extended. The Act replaces the initial six-month deferral period. The Act also allows borrowers to remit forgiveness applications up to the maturity date of their loan. The terms of the 2021 PPP borrowings were done in accordance with the Flexibility Act (interest deferred for 16 months from distribution date).
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. These payment terms were adopted in the 2021 PPP loans and your PPP promissory note reflects the same. For the 2020 borrowings, 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.
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 14, 2020|
|Interest Commencement Date (if borrower has not applied for forgiveness):||August 30, 2021|
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@example.com (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”. If you are ready to commence the forgiveness process, please contact Linda Kelly, firstname.lastname@example.org and a link will be created and sent to you. 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 provide the email address and the full name of the person you would like us to direct it to.
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 $150,000.00 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@example.com (this email is for your reference only, please do not use this email for questions) so that you may retrieve it in the future. Please note: The link contained in the email will expire within 90 days of the date it was generated.
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 (3508S, 3508EZ and 3508), when applicable (3508S no documentation required at submission of forgiveness application), 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 (PPP loan equal to or less than $150,000.00, documentation must be retained, but not submitted at the time of application):
- Bank account statement documenting the amount of cash compensation paid with proof of transfer of payment from business to self
- Tax filings for the selected Covered Period
- Non-Payroll Documentation:
- Mortgage Interest
- Account statements
- February 2020 and Covered Period and one month afterwards; or amortization schedule and receipts/cancelled checks
- Account statements
- February 2020 and Covered Period and one month afterwards; or lease agreement and receipts/cancelled checks
- Utilities/Covered Operations Expenditures/Covered Property Damage Costs/Covered Supplier Costs/Covered Worker Protection Expenditures
- Account statements
- Invoices February 2020 and Covered Period
- Receipts/Cancelled Checks/Account Statements
- Utility bill
- Insurance bill
- Mortgage Interest
If you prefer to file your forgiveness application via a non-electronic process, we ask that you please contact Linda Kelly via email at firstname.lastname@example.org or via phone at 1-570-253-1970 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@example.com - 1-570-253-1970 extension 7653, direct number 1-570-729-7686
Rory McGhie - firstname.lastname@example.org - 1-570-253-1970 extension 7134
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