If you obtained a SBA Paycheck Protection Program loan through Clear Mountain Bank, we have compiled a document with very important information pertaining to the forgiveness portion of the loan. Click below to learn what documentation may be needed and what you will need to do to save money.
What you need to know:
Clear Mountain Bank is participating in the Paycheck Protection Program offered through the Small Business Administration.
A guide on defining "payroll costs" for the purpose of qualifying for the Paycheck Protection Program.
A list of documents you'll need to provide to the bank and/or SBA for Loan Forgiveness.
Updated May 13, 2020 (Questions 46-47)
SBA and Treasury Department announced a safe harbor that will apply to reviews of good-faith certifications concerning the necessity of Paycheck Protection Program loan requests.
In the latest update to their frequently asked questions on the program, the agencies said any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.
The agencies said:
• Borrowers with loans below this threshold are generally less likely to have access to adequate sources of liquidity, and the safe harbor will promote economic certainty for them.
• The SBA previously said all PPP loans over $2 million—and other loans as appropriate—will be subject to review.
• Borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification.
• If SBA determines that a borrower lacked an adequate basis for the required certification, it will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness.
• If the borrower repays the loan after receiving notification from SBA, the agency will not pursue administrative enforcement or referrals to other agencies.
• SBA’s determination on these certifications will not affect its loan guarantees, which remain in place.
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