Thank you for choosing Bank of Utah to process and service your Paycheck Protection Program (PPP) loan. We are pleased to be able to assist you and our community during this difficult time. We will be frequently updating this page, as information becomes available, to help you prepare to apply for PPP Loan Forgiveness.
A new law was signed on June 5, to address concerns surrounding the original PPP program. The Paycheck Protection Program Flexibility Act (PPPFA) addresses the following points:
PPPFA changes amount of loan needed for payroll to 60%. This increases the amount of funds available for other expenses, such as rent, mortgage payments, utilities, and interest on loans from 25% to 40%.
PPPFA extends time period to use funds from 8 to 24 weeks. While businesses will still need to spend the money on payroll and authorized expenses, you now have until the end of 2020 to do so. You can still apply for forgiveness after eight weeks if you prefer.
PPPFA pushes back a June 30 deadline to rehire workers to December 31, 2020 and eases rehire requirements. The payroll calculation used in the loan application still applies to the forgivable amount, however you now have until December 31, 2020 to rehire workers in order for their salaries to count towards forgiveness. Additionally, it adds exceptions for a reduced headcount if you are able to demonstrate an inability to return to the same level of business activity or demonstrate an inability to hire similarly qualified employees on or before December 31, 2020.
PPPFA extends the repayment term from 2 years to 5. In the event that the loan or a portion of the loan is not forgiven, you now have five years at the 1% interest rate to repay the loan.
There are still many questions to be addressed and we expect more regulations to come. We will post a link to the revised PPP forgiveness application as soon as it is released.
Accurate recordkeeping and bookkeeping is required to maximize your loan forgiveness amount. Keep diligent track of all eligible expenses and accompanying documentation for this 24-week period. We recommend that you consult with your tax advisor, legal counsel, or a bookkeeping service to assist your business if necessary. As we near the forgiveness period, Bank of Utah will be contacting you with additional information on how to submit your forgiveness information. In the meantime, if you have any specific questions, please reach out to your Bank of Utah loan officer.
As your local community bank, Bank of Utah is committed to supporting our customers, communities and employees for more than 67 years. We’re here to do all we can to help those adversely impacted by this pandemic.