Paycheck Protection Program Loan Forgiveness Update
As part of the Consolidated Appropriations Act, 2021 (the “Act”) that was passed on December 27, 2020, borrowers with Paycheck Protection Program (PPP) loans up to $150,000 will have an opportunity to take advantage of a simplified loan forgiveness process. On January 19, 2021, the SBA implemented this provision of the Act by releasing PPP Loan Forgiveness Form 3508S (“S Form”). Adirondack Bank (“the Bank”) is now accepting loan forgiveness applications on the S Form for those who qualify.
Please Note: You must apply for PPP Loan Forgiveness as it will not be automatic.
The S Form applies to borrowers that have a PPP loan of $150,000 or less for first or second draw PPP loans.
Benefits of S Form:
- Borrowers of $150,000 or less and who, together with its affiliates, have not received PPP loans totaling $2 million or greater are exempt from reductions in loan forgiveness amounts based on reductions in FTE or in salaries or wages.
- Borrowers are not required to show calculations used to determine loan forgiveness amount. (SBA may request this information during its loan review process).
- Borrowers are not required to submit eligible payroll and non-payroll documentation to their lender but are required to maintain all supporting documentation for record-keeping.
A 3508S application will be sent via a secure DocuSign e-mail that can be completed digitally by the borrower and returned to the Bank via secure e-mail. Key information necessary to complete the application will be pre-filled by the Bank. This information includes:
- PPP Loan Number Assigned by SBA
- PPP Loan Number Assigned by Adirondack Bank
- Loan Disbursement Date
- Loan Amount
- NAICS Code
- Covered Period (which is the disbursement date with an additional 24-weeks added to calculate the coverage period)
Please contact Adirondack Bank via e-mail at PPPforgiveness150@adirondackbank.com to let us know that you are ready to apply for PPP forgiveness. We will promptly send you the application via DocuSign. Thank you!
