Announcements



5/21/2021 2ND NOTICE: PPP Borrower Loan Forgiveness Update – $150K or More

May 21, 2021

Dear PPP Borrowers,

As First Draw Paycheck Protection Program (PPP) borrowers with The First National Bank of Long Island, the program requires that you apply for loan forgiveness*.

Since the Small Business Administration (SBA) is taking up to ninety days to process forgiveness applications, we strongly encourage you to send in your application to us as soon as possible. Many PPP borrowers with loans outstanding wrongly believe their loan will be automatically forgiven by the Small Business Administration (SBA). These loans are not automatically forgiven. Forgiveness of all PPP loans must be applied for using the appropriate SBA form.

Be aware if you do not apply for and receive forgiveness from the SBA, you will be required to begin making payments on your loan. The monthly principal and interest payment due will not be waived, and for many borrowers this will cause a substantial financial burden. To apply for loan forgiveness, you must complete and submit the appropriate loan forgiveness application. Instructions are available at the links below for download.
  • FORM 3508-EZ
    • This is a 2-page application that can be used if your PPP loan amount is greater than $150,000 and you are:
    • Self-employed, independent contractor or sole proprietor with no employees;
    • You did not cut salaries or wages by more than 25%, and did not reduce employee hours; OR
    • You did not cut salaries or wages by more than 25% and you were unable to operate at full-service capacity as a result of government COVID-19 health directives.
  • STANDARD FORM 3508
    • If you don’t meet the standards listed for the 3508-EZ, then you must use this longer form application.
For further information please contact your local branch or loan officer. Submit your completed application via email to ppp@fnbli.com. Your documentation will be reviewed and processed in accordance with the SBA guidelines.

We hope the funding has positively impacted your business and provided you with additional financial security. If you have any questions about the forgiveness process, your local First National LI branch or your loan officer is your best point of contact.

Sincerely,
Christopher Becker
President & CEO

*PLEASE NOTE: The PPP information on our Announcements webpage at fnbli.com is subject to change pursuant to guidance published by the Small Business Administration. We cannot guarantee that the SBA will approve full forgiveness upon your application. Application decisions may also be delayed by factors out of our control. The First National Bank of Long Island is not a tax advisor company. There may be additional guidelines and information, regarding your organization’s tax situation, not included in this email. For more information, you should always contact your tax advisor or visit the IRS website.

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