Important Information For Those Who
Obtained an SBA Loan Through Us
If you have a Clear Mountain Bank SBA Paycheck Protection Program (PPP) loan …
VERY IMPORTANT INFORMATION BELOW TO SAVE YOU MONEY
We have been assisting small businesses in our community for more than 100 years. Our background with both our small business customers and the Small Business Administration (SBA), enabled us to begin processing PPP applications when the program opened on Friday morning, April 3, 2020. We are very proud that Clear Mountain Bank was among the first banks in the nation to begin processing PPP loans. As a result, we were able to help several hundred local companies and small business owners to be approved to receive loans through this new program.
Just as we were here to help you with the loan application and secure funding for you, we will be here to assist you with the “forgiveness” portion of the process. As you know, from the original guidance provided by the SBA, you MUST SPEND AT LEAST 75% of your loan proceeds on eligible payroll expenses AND maintain the same number of employees throughout the 8-week period, in order to seek forgiveness of a portion, or all, of your loan balance. Regardless of whether or not you qualify for forgiveness at any level, please note that this program does not allow for forgiveness of interest, so the borrower remains responsible for the interest portion of the payment.
From the date of your note, you have eight (8) weeks to spend the principal balance in accordance with the rules of the program. Banks have not yet received guidance from the SBA relative to the specific information that will be required from the borrower at the end of the eight-week “spend” period, so we cannot guarantee how that process will work. However, the original guidance does provide enough information to give us a general idea of the records you should maintain throughout the eight-week period.
The list of documents included below will help you get started. When the SBA provides additional guidance in regard to the certification process that will be required for the “forgiveness” portion of the program, we will provide that information here on our website. If you have any questions, please contact the Clear Mountain banker who helped you with your PPP loan for further assistance.
We anticipate borrowers will be expected to provide, at a minimum, the following information to the bank and/or SBA for Loan Forgiveness:
- Copies of payroll tax reports file with the IRS – including Forms 941, 940, state income and unemployment tax filing reports for the 8-week period following the original of the loan.
- Copies of payroll reports for each pay period for the 8-week period following the origination of the loan. Gross wages including PTO (which might include vacation, sick, and other PTO) should be reflected.
- Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the 8-week period following the origination of the loan should be provided. Copies of the monthly invoices should suffice.
- Documentation of all retirement plan funding by the employer for the 8 weeks following the origination of the loan should be sufficient. Copies of workpapers, schedules and remittances to the retirement plan administrator should be available.
- Copies of all lease agreements for real estate and tangible personal property should be presented along with proof of payment during the 8-week period following the loan origination date.
- Copies of all statement of interest paid on debt obligations incurred prior to February 15, 2020 indicating payment amounts and proof of payment for the 8-week period following the loan origination date.
- Copies of cancelled checks, statements or other evidence of utilities paid during the “covered period” for the 8-week period following the loan origination date.
- IF SELF-EMPLOYED: copies of accounting records to verify funds paid to you by distribution (funds reportable in your personal 2020 tax return, when filed, on Schedule C, Line 31 – based upon the 2019 tax return format).