Q: When can I apply for loan forgiveness?
A: You can apply for loan forgiveness beginning 8 weeks after your loan funding date, or once your funds have been fully utilized. Loan proceeds must be used before the end of the 24 week period.
Village Bank is now processing forgiveness applications. We will send borrowers an email to notify you when we are ready for you to submit your application as we have a number of loan forgiveness apps to process.
Q: Where can I find the PPP Loan Forgiveness Application?
A: On January 19th, 2021 the SBA released a revised loan forgiveness applications.
• PPP -- IFR -- Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act (1.19.2021)
For loans less than or equal to $150,000:
The SBA has a simpler forgiveness application for PPP borrowers with loans less than or equal to $150,000. Follow the link for the application and instructions. We are now accepting these applications if you are ready to apply for forgiveness.
For loans greater than $150,000:
• SBA has an EZ version of the loan forgiveness application and instructions that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
• If the three bullets above do not apply to your business but your loan was greater than $150,000, please use the full application and instructions.
Upon completion, please click here to send your files securely.
We encourage you to reach out to your CPA, payroll processor, or financial advisor to determine which application to use and ensure accurate completion of the application and documentation.
Q: How long will it take to process my application?
A: Once a final, fully completed application has been submitted to Village Bank, the loan forgiveness review timeline is as follows:
- Village Bank will have up to 60-days to review and submit Loan Forgiveness Applications to the SBA
- Upon receipt of a Loan Forgiveness application, the SBA will have up to 90-days to review/approve Loan Forgiveness applications.
Q: What changed with the Paycheck Protection Program Flexibility Act of 2020?
A: The Paycheck Protection Program Flexibility Act of 2020 includes, but is not limited to the following provisions that apply to new and existing loans except for the maturity minimum:
- Extending the loan maturity minimum to 5 years for new loans going forward;
- Changing the breakdown of payroll to non-payroll expenses from 75%-25% to 60%-40%. 60% minimum to be used on payroll costs and 40% can be used on non-payroll items including mortgage interest, rent, and utilities;
- Extend the origination period of PPP loans from June 30, 2020, to December 31, 2020;
- Extend the 8-week covered period to 24 weeks. Borrowers can choose to use the original 8-week covered period for forgiveness or the new 24-week covered period;
- Extend the deferral period for payments to 10 months after the end of the 24-week covered period;
- Allow borrowers with forgiven loans to defer payroll taxes;
- Expand the safe harbor for rehiring employees by allowing that the forgiveness will not be affected by a reduction in employees if the borrower is able to document an inability to rehire individuals, to hire similarly qualified employees, or to return to the same level of business activity as it was operating at before February 15, 2020
Q: Where do I find my SBA PPP Loan Number/Lender PPP Loan Number?
A: For clarification, your SBA PPP Loan Number and Lender PPP Loan Number are the same number and can be found on your Promissory Note under "Loan No" as shown here:
Q: Where do I find my PPP Loan Amount?
A: Your PPP Loan Amount is the disbursed principal amount of the PPP loan (the total loan amount you received from Village Bank) and can be found on your Promissory Note under "Principal" as shown here:
Q: Where do I find my PPP Loan Disbursement/Funding Date?
A: Your PPP Loan Disbursement/Funding Date is the date that you received the PPP loan proceeds in your account from the Village Bank. If loan proceeds were received on more than one date, enter the first date on which you received PPP loan proceeds. To find your Loan Disbursement Date, check your Business Online Banking account or e-statements (mailed statement if applicable) for the date that funds were deposited into your account. An example from an e-statement is shown here:
Q: Where do I send the completed application and supporting documentation?
A: Once you are notified that Village Bank is accepting applications, your completed application and supporting documents can be uploaded to this secure file link.
To ensure accurate completion of the PPP Forgiveness Application, work with your CPA, payroll processor, or financial advisor on the specifics of PPP.