Charlotte State Bank & Trust is now accepting forgiveness applications for the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) loans.
The amount of forgiveness is based on the amount of loan proceeds that you used to cover eligible payroll costs, utilities, rent, and mortgage interest obligations over the covered period. Borrowers must elect the 8-week, 8-week modified, or 24-week period from the date of loan disbursement as their “covered period.”
Up to 100% of your PPP loan is eligible for forgiveness; you don’t have to repay it, if you meet the conditions required by the SBA.
You will not receive 100% forgiveness if you took an SBA Economic Injury Disaster Loan (EIDL) Advance. The EIDL Advance is deducted from your total loan forgiveness, and you will have a loan with us (up to $10,000) equal to the amount of the advance. This loan will be at a 1% interest rate and will be amortized over a 2 or 5 year period. Loan repayment will begin 10 months after the end of your elected covered period.
You do not need to wait until the end of the 24-week period to apply for forgiveness if you have met the SBA’s criteria. We recommend that you consult with your CPA or other advisor before submitting your forgiveness application early.
You will complete and securely submit the loan forgiveness application along with the required documents to the Bank electronically. If you have only paper versions of the documents, please scan to PDFs.
Two different forgiveness applications are available from the SBA: 3508EZ and 3508. For those who qualify, the 3508EZ form is the preferred form, as it is a condensed and easier form to complete. If you do not meet the requirements of the EZ application, you will use the full 3508 form, and we advise completing the PPP Schedule A Worksheet before starting the application. If you have a payroll provider, you may need to request a payroll report from them.
Details on loan forgiveness, forms and instructions can be found on the SBA website.
Charlotte State Bank & Trust and its representatives cannot provide payroll, tax, or legal advice, and we are unable to assist with your PPP loan forgiveness calculations. We recommend that you carefully review all rules, regulations, and guidance from the SBA with the assistance of your legal, tax, and other advisors.
Please note, if you do not apply for forgiveness, payments on your PPP loan will begin 10 months after the end of the covered period.
If you have any questions or concerns regarding the loan forgiveness process, please don’t hesitate to contact us.