PPP Update – $150K or Less

December 7, 2021

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.

To apply for loan forgiveness, you must complete and submit the appropriate loan forgiveness application. Forgiveness of PPP loans under $150,000 must be applied for through the SBA Form 3508S. You can submit your completed application via email to ppp@fnbli.com. Your documentation will be reviewed and processed in accordance with the SBA guidelines.

The SBA has also launched a streamlined, easy-to-use application portal to allow borrowers with loans for $150,000 or less to apply for forgiveness directly at directforgiveness.sba.gov.

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.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.