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Paycheck Protection Program Summary

Under the CARES Act (the Coronavirus Aid, Relief and Economic Security Act), the stimulus provides $350 billion in funding for the Paycheck Protection Program (PPP). This program provides zero-fee loans up to $10 million. Capital to cover the cost of retaining employees with zero-fee loans up to $10 million. Up to eight weeks of average payroll and other costs can be forgiven if the business retains its employees and salary levels.

Loan Forgiveness

Updated November 6, 2020

We look forward to supporting our customers through the PPP Loan forgiveness process. We are also encouraging our customers to continue to wait to apply for forgiveness. Congress continues to negotiate additional legislation to make the PPP forgiveness process easier, which will save you significant time and reduce the amount of documentation required.

Payments will not be required on your outstanding loan balance until after your loan forgiveness has been determined. You have 10 months from the date of the end of your chosen “covered period” to submit your forgiveness application. There is still plenty of time to apply for forgiveness of your PPP loan.

When the time is right to apply for loan forgiveness, we will email ESL PPP Loan customers with additional information and instructions on how to apply.

Here is some information to keep in mind so you can be prepared when it’s time to file for forgiveness, should you need it.

  • The “covered period” for loan forgiveness is the earlier of either 24 weeks from the disbursement of the loan or December 31, 2020.
  • Businesses have until December 31, 2020 to rehire employees and reverse salary cuts of greater than 25 percent.
  • Borrowers are exempt from the proportional reduction in loan forgiveness due to a reduction in employees, if the borrower is able to document, in good faith, that for the period of February 15 to December 31, 2020, the borrower was unable to:
    • Rehire employees who had been employed on February 15, 2020, or hire similarly qualified employees for unfilled positions by December 31, 2020; or
    • Return to the same level of business activity at which the borrower was operating before February 15, 2020, due to compliance with federal requirements or guidance set forth between March 1 and December 31, 2020, relating to standards of sanitation, social distancing, or other worker or customer safety requirements related to COVID-19.
  • 60% of PPP loan proceeds must be used for payroll costs to qualify for full loan forgiveness.
  • All payments are deferred until the date on which the amount of loan forgiveness is remitted to the lender by the SBA; however, interest will continue to accrue over this period. If the loan qualifies for forgiveness by the SBA, the accrued interest will also be forgiven.
  • If a borrower fails to apply for loan forgiveness within 10 months after the last day of the covered period for PPP loan forgiveness, the borrower must begin to make payments of principal, interest, and fees associated with the PPP loan.

How to prepare and file for loan forgiveness:

  • When the time is right to apply for loan forgiveness, we will email ESL PPP Loan customers with additional information and instructions on how to apply. This email will instruct customers to apply through our online portal.
  • Please refer to our PPP Loan Forgiveness Application Guide (PDF) to determine which PPP Loan Forgiveness application you should complete.
  • The forgiveness applications may change. We are encouraging customers to visit the SBA website, for the most recent information, prior to filing.
  • For more information on PPP Loan Forgiveness, please visit the U.S. Treasury Website, where you will find an SBA PPP Loan Forgiveness Fact Sheet and Frequently Ask Questions on Loan Forgiveness:
  • We encourage customers to retain all records for six years after your forgiveness is processed.

For the most current information on PPP loan forgiveness, please visit the SBA website and the U. S. Treasury website.

We appreciate your understanding and patience as we all work together through these uncertain times.

Additional options may be available through the SBA.

SBA Contact Information: