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PPP Loan Forgiveness

Southside Bank is here to help as you use the funds from your SBA Paycheck Protection Program (PPP) loan.

 

SBA PPP Latest Updates as of September 9, 2020

Southside Bank is currently accepting Paycheck Protection Program (PPP) loan forgiveness applications through a secure online portal.* If your loan is past the 8-week initial funding date, your organization's designated point of contact should receive an email with a submission link to apply for forgiveness. Please note that when you submit your organization’s PPP loan application in the secure portal, you must also submit the required supporting documentation. Click here to view the list of required documentation for both the “EZ” and standard PPP applications.

If you received your loan prior to June 5, you have the option to choose an 8-week or 24-week covered period. If your loan was funded on or after June 5, you automatically receive a 24-week covered period. You are not required to wait until the end of the covered period before applying. As long as all funds have been used, you may apply by listing the covered period dates on your application and providing documentation for the number of weeks it took to deplete the funds. 

When applying for forgiveness, we encourage you to use payroll expenses only, if possible, to simplify the application process. If you can reach your loan amount with payroll expenses only, you will not be required to provide rent and utility documentation.

The SBA has a webinar available this week to discuss the loan forgiveness application and frequently asked questions. The Houston District Office of the SBA is providing a webinar hosted on the Microsoft Teams platform to assist you with the loan forgiveness application. Click here to access the appropriate webinar under “PPP Loan Forgiveness.”

For the latest information regarding PPP Loan Forgiveness, please refer to the sites below:

* Legislation called the HEALS Act is currently pending in Congress and if approved, it will significantly simplify the loan forgiveness process for loans of $150,000 or less. We understand that borrowers with loan amounts of $150,000 or less may want to apply for forgiveness as soon as possible, however, we recommend waiting until a decision is made regarding the HEALS Act so you may benefit from an easier application.

 

SBA PPP Loan Forgiveness Application

The SBA has updated the loan forgiveness application and issued a new, simplified application for certain borrowers. In addition, the SBA has clarified that borrowers will be able to apply for forgiveness before the end of their covered period as long as all loan funds have been used. 

The SBA has shared that borrowers will not be required to make their first payment until 16 months from the date of loan disbursement. This new date was set as a placeholder to allow the SBA time to review forgiveness requests prior to the first loan payment date. If a portion of the loan remains after the SBA has confirmed the forgiveness amount, a new payment schedule will be established.

Please note that the applications below are subject to change and there is no need to submit any information to Southside at this time. We will notify you when you are able to submit your application and supporting documents.

 

SBA PPP Flexibility Act

On June 5, 2020, the Paycheck Protection Program Flexibility Act was signed into law. This Act modifies restrictions on PPP loan forgiveness and includes the following changes: 

The SBA interim final rule has been updated to reflect these changes.

 

Questions?

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