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Paycheck Protection Program Forgiveness

Reliant Bank participated in the 2020 Paycheck Protection Program (PPP) funding.  We facilitated the funding of 84 million dollars represented by over 890 small businesses.  Reliant Bank will continue to service and manage the forgiveness process of loans originated during this round of funding.

On December 27, 2020, the President Trump signed the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act) into law.  The Economic Aid Act revises certain PPP requirements and extends the authority to make PPP loans through March 31, 2021, or until funds are no longer available. The Consolidated First Draw PPP IFR titled ‘‘Business Loan Program Temporary Changes; Paycheck Protection Program as Amended by Economic Aid Act’’ restates existing regulatory provisions to provide lenders and new PPP borrowers a single regulation to consult on borrower eligibility, lender eligibility, and loan application and origination requirements issues for new First Draw PPP loans, as well as general rules relating to First Draw PPP Loan increases and loan forgiveness.

Visit www.sba.gov or www.treasury.gov for more information and details, including the comprehensive program rules.

Highlights of the Economic Aid Act Impacting PPP Loan Forgiveness

Simplified, one-page certification for borrowers with loans of $150,000 or less

Please note, borrowers with PPP loan balances in excess of $150,000 should have received a forgiveness application link.  The forgiveness forms have not change for these borrowers.  If you are unable to locate your forgiveness application link, please contact your Relationship Manager.

Broadened eligible covered expenses to include:

  • Covered operations expenditures
  • Covered property damage costs
  • Covered supplier costs
  • Covered worker protection expenditures

Increased Covered Period flexibility allowing borrowers to select an ending date that falls anywhere between 8 and 24 weeks

Repeal of EIDL Advance Deduction

The SBA will need to issue rules providing guidance on the changes defined by the Economic Aid Act. Reliant will continue to use our third-party vendor for providing digital application links and submitting applications and documentation to the SBA.  Once the SBA has finalized its forgiveness updates relating to the Act, our vendor will update the software to accommodate the changes.  Reliant will communicate as updates are available regarding the forgiveness process changes.

Forgiveness FAQs for Loans of $150,000 or Less

What can I do now?

  • Seek trusted advice.Talk to an accountant or legal advisor about these expected changes. Every situation is unique, and borrowers need to figure out the best approach for their circumstances for forgiveness and/or additional funding.
  • Gather known required documentation.Please understand that moving forward with an application before the SBA has issued guidance may mean forgoing benefits expected to be available under the new provisions.

What should I do if I have already applied for forgiveness, or if I need to move forward with the application process?

  • As a result of the proposed changes, Reliant Bank is encouraging borrowers to pause their submission of loan forgiveness applications until the rules are finalized by the SBA.
  • If the borrower previously applied and the EIDL Advance was deducted from the forgiveness amount, the Bank will communicate next steps once they are known.
  • If the borrower wishes to apply or continue with the existing application due to extenuating circumstances (such as a pending sale or merger of their business), please contact your Relationship Manager.

Forgiveness Resources

PPP Forgiveness Webinar

On Thursday, December 17th, Reliant Bank hosted a 90-minute, expert-led webinar for Reliant Bank’s PPP Borrowers. The webinar focused on the following aspects of PPP loan forgiveness:

  • PPP Forgiveness application forms and how to know which one is right for you
  • Eligible expenses
  • Filing requirements
  • Software tutorial (how to navigate the software you will use to complete your forgiveness application)
  • Owner compensation rules
  • Supporting documentation

A recorded version of the webinar is now available. If you were unable to attend the live webinar, we encourage you to watch the recorded link and view the presentation.

PPP Forgiveness 90-minute Webinar
PPP Forgiveness Presentation [PDF 1MB]

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