Based upon the original 8-week covered period in the SBA PPP rules, many of our borrowers are now in position to file their applications for loan forgiveness. While Citizens Bank is ready to begin accepting applications for loan forgiveness, borrowers may find it beneficial to delay starting the process and continuing to monitor the changes that are coming from Congress, the SBA and the Treasury Department.
As was seen by the passage of the Paycheck Protection Program Flexibility Act by Congress on 6-3-20 (signed by President Trump on 6-5-20) legislative changes are presently occurring and others appear possible that may be beneficial to borrowers.
As a result of this new legislation, updated borrower and lender Forgiveness Applications were published by the SBA and Treasury Department over the weekend. Links to both documents are included below:
Citizens Bank has been and will continue to diligently monitor changes in program rules as well as discussions in Congress. At this point we continue to recommend to our borrowers that they delay their forgiveness application to let the legislative and rule making process develop. Changes being considered may be to the benefit of borrowers, including the possibility of a streamlined application for loans under a certain dollar amount. Any forgiveness will be granted on a principal and interest basis, so there will be no interest expense on the forgiven amount by waiting.
Whatever you decide about your forgiveness application, be assured that Citizens Bank will approach the PPP forgiveness process in an efficient and methodical way.
The PPP has been a challenging process for you and for Citizens Bank. We expect the forgiveness process to present similar challenges. We will continue to provide information as soon as possible after publication.
Citizens Bank recommends that you consult your outside advisors and experts in all matters relating to the PPP and loan forgiveness. We will work to provide you timely and accurate information, but the burden for obtaining forgiveness rests on the borrower. All information provided in this format or any other communication regarding the program is believed to be accurate, but no guarantee is or can be made by any Citizens Bank representative.
Please submit your questions to pppquestions@citizens-banking.com. Include the name of your business in your e-mail. We will endeavor to answer in a timely way with the best information currently available.