Last updated on August 27, 2020 by your Farmers & Stockmens Bank experts.
The Paycheck Protection Program is an SBA program that is part of the CARES Act which was signed into law on Friday, March 27, 2020. Below are the details of the program.
When Congress recently adjourned with no resolution on additional stimulus, all proposed changes to PPP Forgiveness were tabled until they resume those discussions. There are multiple PPP Forgiveness modifications proposed in the various iterations of a new stimulus package. They are meaningful changes and warrant waiting for Congress to reconvene and come to some conclusions.
One of the key proposals in Congress would remove the forgiveness application requirement for small businesses and nonprofits with loans under $150,000. Instead, borrowers would “attest” to their good-faith effort to comply with the loan rules, notably using at least 60% of the money for payroll expenses. This is a substantial change and benefit to most PPP borrowers.
A separate proposal would significantly reduce the forgiveness application requirements for loans from $150,000 to $2 million, and those borrowers would no longer have to submit payroll support and other documents showing how the money was spent but simply certify that the records exist and keep them for three years.
Both of those proposals appear to have bipartisan support but are tied up in the larger stimulus debate.
We continue to monitor the progress in Congress and throughout the industry, and once some definitive answers are in place we will formalize and share a process for submitting for Forgiveness.
We appreciate your continued patience as the Forgiveness process evolves into what appears could be a much more favorable process for Small Businesses.
Should you have any questions, please don’t hesitate to reach out to your Banker or Relationship Manager.
As we wait for the updated PPP Forgiveness Application from the SBA, we encourage you to use the expense tracking log to help keep all expenses tracked and summarized in one spreadsheet. Please note that the default dates are set for the 8-week period, please adjust this to fit your chosen time period. Scroll down to download the spreadsheet.
Download the PPP Expense Tracking WorksheetDownload
Clearly, there are a lot of questions to be answered about PPP forgiveness. As your bank, we want to make sure that you are armed with the best guidance we can find. We will continue to share any information or direction we receive from the SBA.
Should you have any questions or would like to discuss SBA options in greater detail, please click on a name below to connect with our banking team:
Larry Fluhman moved to Clayton in 1976, and five years later married his wife, Jay, a Clayton native. Raised on a ranch North of Roy, New Mexico, Larry is still active in ranching activities and remains heavily involved in the community, including being a Trustee at First United Methodist Church, a member of Clayton Rotary Club, part of Union County Economic Development, and more.
Larry started at Farmers & Stockmens bank back in 1986 and joined the Board of Directors in 1992. With more than 40 years of banking experience, Larry brings a wealth of knowledge to the team and customers at Farmers & Stockmens Bank and looks forward to what the future holds for the community.
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Born and raised on a farm in Texas, Nick needs no translation when it comes to understanding the needs of farmers and ranchers. With a degree in Agricultural Business, nearly 20 years of banking experience, and a local wheat and corn operation of his own, Nick is personally passionate about extending the same level of care and consideration to every local resident. He specializes in agricultural lending, including farm and ranch real estate, and farm and ranch operating loans.
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With lifelong involvement in the cattle business, Jordan offers beneficial insight from both sides of the desk. With a master’s degree from the University of Colorado School of Banking, Jordan is committed to creating a better future for rural communities through considerate care with banking, real estate, and farm or ranch lending programs.
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Vice President of Loans
A native of Clayton, Amy considers members of this community to be like family. As a consumer loan servicer proficient in auto loans, 4-H loans, student loans, home mortgages and more, she offers a personal touch for every client — whether conversing in English or Spanish. She is proud to work alongside clients long-term as the Bank’s Escrow Agent for Owner Finances.
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