PPP Update – $150K or More
As a Paycheck Protection Program (PPP) borrower with The First National Bank of Long Island, your next important step is to apply for loan forgiveness*. The Bank has not yet received your application and we encourage you to submit this application as soon as possible. Many PPP borrowers believe these loans will be automatically forgiven by the Small Business Administration (SBA); however, these outstanding loans are not automatically forgiven. You must file your loan forgiveness application, or you will need to begin making payments on your loan amount balance due. Please keep in mind that the SBA can take up to 90 days to process and approve PPP loan forgiveness applications.
Please be advised; if you do not apply for and receive forgiveness from the SBA, you will be required to begin making monthly payments. The monthly principal and interest payment due will not be waived, and for many borrowers this will cause a substantial financial burden.
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; OR
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.
If you have any questions about the forgiveness process, your local branch representative or your loan officer is your best point of contact. We hope the funding has positively impacted your business and provided you with additional financial security.
*PLEASE NOTE: The PPP information on our Announcements webpage at fnbli.comis 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.