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Given the Supreme Court ruling, we are looking into reopening our lobbies. We do not yet have a specific date for this, as we are waiting for further guidance and developing plans to ensure customer and employees safety. 

Our Digital Banking platfrom has upgraded to a new look. All of the functionality that you have become accustomed to remains the same! 

Given the Supreme Court ruling, we are looking into reopening our lobbies. We do not yet have a specific date for this, as we are waiting for further guidance and developing plans to ensure customer and employees safety. 

Our Digital Banking platfrom has upgraded to a new look. All of the functionality that you have become accustomed to remains the same! 

Peoples State Bank

Maximize Your PPP Loan Forgiveness

Make Plans to Apply for SBA’s Forgiveness

Critical planning and documentation now will put your business far ahead when applying for PPP loan forgiveness. The burden falls on business owners to comply with the intended use of the money and to track all monies used. Borrowers must use the funds predominantly (at minimum 75%) for payroll. It’s crucial for borrowers to track and record expenses to apply for forgiveness. If your PPP is through Peoples, expect to turn in receipts, registers, reports, etc., to verify how your PPP funds were used.

HOW DOES THE LOAN FORGIVENESS WORK?

A borrower is eligible to apply for loan forgiveness equal to the amount spent on the following items during the 8-week period beginning on the date of the origination of the loan:

  • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
  • Interest on the mortgage obligation incurred in the ordinary course of business
  • Rent on a leasing agreement in force before Feb. 15, 2020
  • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
  • For borrowers with tipped employees, additional wages paid to those employees

Learn more on maximizing forgiveness with these tools:

WHAT IS NEEDED AND WHEN CAN I APPLY FOR LOAN FORGIVENESS?

Upon completion of the eight-week covered period, you can apply for loan forgiveness. The SBA is still determining its process for forgiveness, but here are the items you'll need to get started:

  • Documentation verifying the number of employees on your company payroll and pay rates for the eight-week period
  • Documentation including checks images, payment receipts, transcripts of accounts, payroll registers or other documents verifying payments for covered purposes
  • Borrower attestation that the documentation is true and correct and that the amount for which forgiveness is requested was used to retain employees or other qualified expenses
  • Any other documentation the SBA deems necessary

The SBA and Treasury Department have released the PPP Loan Forgiveness Application and instructions. The document informs borrowers how to apply for forgiveness of their PPP loans, consistent with the CARES Act. The form and instructions include:

  • Options for borrowers to calculate payrolls costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after borrowers received their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • The new exemption for borrowers whose good faith, written offers to rehire workers were declined

Please watch for future updates as we expect to receive more specific Information from the SBA for borrowers on completing the application.

WHAT COULD CAUSE A LESSER AMOUNT TO BE FORGIVEN?

  • Employee count – If the number of employees at June 30th is less than what was recorded on the application, forgiveness amounts may be impaired. The Department of Treasury FAQs above provide detail on how to document previously laid-off employees who were re-offered a position but declined to return to work. This will not be held against you.  
  • Wage levels – Any wage reduction of an employee, by more than 25% when compared to the most recent full quarter during which the employee was employed, may impair forgiveness.  
  • Misused funds – Any funds not used for eligible purposes will not be forgiven and could harm your overall forgiveness.

Paycheck Protection Program Tools

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PPP Loan Forgiveness Application

         DOWNLOAD APPLICATION

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PPP Forgiveness Guide

                Download Guide

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Qualifying Payment Documentation Spreadsheet

        Download Spreadsheet