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SBA Paycheck Protection Program

PPP Loan Forgiveness Information

During this trying time, we thank you for trusting First Community Bank to help process your PPP loan with the Small Business Administration (SBA).

The updates below include the most impactful changes to the PPP loan forgiveness requirements and processes that we would like to highlight for you. As new information is shared, we will post it here for your reference. Please check back often, or reach out to your banker if you have specific questions about your loan.

 

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November 16th Update

Updated Information on the PPP Forgiveness Process 

We have now had several clients successfully complete the forgiveness process and as more borrowers prepare to submit forgiveness applications, we would like to share a few things we have learned in hopes of making the process more convenient for all borrowers.

As a reminder, the forgiveness process consists of:

  1. The borrower completing the SBA application on the bank’s digital platform
  2. The bank conducting a review of the application and supporting documentation
  3. If the review is successful, the bank submitting the application and the supporting documents to the SBA
  4. The SBA providing feedback on the application which the bank then relays to the borrower. The feedback from the SBA is typically “fully forgiven”, “partially forgiven”, “need more information”, or “the application is undergoing further review by the SBA”

EIDL Loans and PPP Forgiveness

  • Borrowers with EIDL advances and EIDL loans (obtained directly from the SBA) should carefully review the EIDL and PPP rules and understand that EIDL advances are subtracted from the forgiveness application by the SBA. In most cases, the SBA will direct the bank to deduct EIDL advances from the forgiveness amount, and that amount must be repaid by the borrower if he/she also received a PPP loan. 

Change in Forgiveness Period

  • Borrowers should consider leveraging the change in forgiveness periods by submitting applications that take full advantage of the time available (24 weeks versus the original eight weeks) and increase the total forgiveness amount. We have seen borrowers submit applications based on the eight-week timeframe that resulted in a balance for the borrower. Had the borrower used the full 24 weeks, they would have received 100% forgiveness.

Supporting Documentation Requirements

  • Note: it is extremely important to provide accurate and complete supporting documentation. Failure to do so will result in rejected applications and processing delays.
  • If borrowers plan to use supporting documentation other than payroll, utility or rent for example, they should review the SBA documentation requirements and understand how thorough your documentation package must be:
    • Copies of leases, cancelled checks, copies of utility statements confirming the existence of service on 2/15 and paid receipts are examples of documentation items that must be submitted with your application, according to the SBA.
  • Borrowers with loan amounts of $50,000 or less will be defaulted into the new SBA Simple Application which has fewer data fields to complete but requires the same amount of supporting documentation as required by the SBA.
  • If more guidance is needed for required documentation, reference the instruction sets provided below for each application type.


October 30th Update

Simple Application Now Available

For borrowers with loans at or under $50,000, Form 3508S, the “simple application”, is now available in the First Community forgiveness platform and can be accessed using the link below.

https://firstcommunitysc.expressbankloan.com/2/#/match

  • Please refer to your email for further information

For borrowers with loans greater than $50,000, it is still our recommendation that you familiarize yourself with the forgiveness process and begin your application as soon as you are ready. Please review the application instructions so that you are familiar with the documentation requirements and the information that will need to be uploaded to support your application.  

For your convenience, we have included the link to the First Community forgiveness platform below.

https://firstcommunitysc.expressbankloan.com/2/#/match


October 9th Update

Streamlined Loan Forgiveness Application Announced by SBA 

On October 8th, the SBA announced a streamlined loan forgiveness application for PPP loans totaling $50,000 or less. As a result we are offering further guidance on when borrowers should consider applying for loan forgiveness.

Please note that if you have already begun the application process, these recommendations may not necessarily apply to you, and you will have already been updated on your application status through the digital application platform.

  • For loans at or under $50,000, the SBA has released a streamlined loan forgiveness application for loans of your size. Although the simplified application is not yet available, we are working to add it to our digital platform as soon as possible and we will notify you here when it is available.

In the meantime, you can review the two-page application here.

If you have already submitted your forgiveness application using the EZ form, we will continue to process your existing application unless the SBA advises otherwise. As we continue to learn more about the streamlined forgiveness process, we will share all relevant updates on this page.

  • For loans above $50,000, your loan amount falls within a range that will likely not be part of a streamlined forgiveness process provided by Congress or the SBA. With that in mind, we recommend you familiarize yourself with the forgiveness process and begin your application as soon as you are ready.

When you are ready to apply, we invite you to take a moment to look at a few video tutorials on our website that explain the key points of the forgiveness application. You can access the videos using the link below.

www.firstcommunitysc.com/response/ppp/videos

 

August 13th Update

Phishing Scam Involving the SBA

We were recently made aware of a scam involving phishing emails that appear to be sent by the SBA but are actually sent by malicious cyber actors hoping to obtain login credentials. The phishing email includes a link that leads to a spoofed version of the SBA COVID-19 loan relief webpage.

Please view the Department of Homeland Security alert to learn more about the spoofed website and phishing emails


August 5th Update

Accepting PPP Loan Forgiveness Applications Beginning August 10th 

The U.S. Treasury and the SBA have announced plans to begin accepting applications for PPP loan forgiveness.

Beginning Monday, August 10, 2020, PPP borrowers can access the First Community Bank digital forgiveness platform using the following link: https://firstcommunitysc.expressbankloan.com/2/#/match.

With access to the forgiveness platform, borrowers may begin to familiarize themselves with the forgiveness process, but as a reminder, each PPP borrower has up to 10 months following the end of their Covered Period to apply for forgiveness.


July 7th Update

Application Deadline Extension

The period in which business owners can apply for PPP loans has been extended to August 8, 2020. In order to meet the SBA's deadline, all applications through First Community Bank must be submitted by close of business on August 5, 2020.


June 23rd Update

Key Timeline Adjustments

  Covered Period

 

Time to spend PPP funds has been extended from eight (8) weeks to twenty-four (24) weeks

Deferral Period

Payments will be deferred through the covered period and until the SBA decisions the forgiveness amount

Application Deadline

The deadline to apply for loan forgiveness has been extended to ten (10) months following the covered period



Approved Uses

  • Business owners can now spend up to 40% of PPP loan proceeds on mortgage interest, rent & utilities and are only required to spend at least 60% of PPP loan proceeds on payroll costs. It is important to note that at least 60% of PPP funds must be used for payroll costs in order to be eligible for full forgiveness. If the borrower does not meet the 60% requirement during the covered period, the borrower is still eligible for partial forgiveness. 

Repayment Term

  • For PPP loans made after June 5, 2020, borrowers automatically have up to five (5) years to repay their loan.
  • For PPP loans made before June 5, 2020, the new law allows each borrower to renegotiate the term of their loan with their lender from the original two (2) years to up to five (5) years. It is important to note that the change in term from two (2) to five (5) years for PPP loans made before June 5, 2020 is not mandated by the new legislation, but rather is subject to negotiation and agreement between the borrower and the bank. It should also be noted that the borrower must apply for forgiveness within ten (10) months following the twenty-four (24) week covered period and have received the SBA’s final forgiveness decision before these terms can be negotiated.


Future Updates

The PPP loan forgiveness process continues to evolve daily, but our goal of making it a positive experience for you remains the same. Rest assured that we will communicate more information as it becomes known. In the meantime, please reach out to your banker with any questions you may have and continue to refer back to this page. Thank you for choosing First Community Bank to assist you with your banking needs.

Below are related links for your reference:

Updated PPP Application

             Small Business Administration

             US Treasury