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We appreciate your patience as we work through the evolving SBA guidance on the PPP Loan and Forgiveness process. I want to update our business clients on PPP Loan Forgiveness, as well as considerations for seasonal businesses. I’d like to remind business clients who have yet to apply for the PPP Loan Program that funds are still available, and we encourage those who are thinking about it to reach out to us with any questions or to apply online soon. SBA PPP Loan Forgiveness The SBA has released additional guidance on the PPP loan program and the loan forgiveness process. They have also released the form that applicants will need to complete to have their PPP loan forgiven. The form includes detailed information about the costs that are eligible for forgiveness and instructions for calculating those costs. The form is currently for informational purposes only and should not be completed or submitted at this time. The period of time when applicants can apply for forgiveness has not yet been opened. The earliest possible date applicants can apply for PPP loan forgiveness is 56 days after your loan was funded. In the meantime, the best thing you can do to prepare for - and maximize forgiveness - is: Keep careful records of all eligible payroll expenses as well as eligible non-payroll expenses (mortgage interest, rent, and utilities) Do not spend PPP funds on anything other than payroll and other eligible expenses (the latter cannot be more than 25% of loan amount) Know that unspent PPP loan funds that cannot be justified for forgiveness, can be repaid without penalty. Review these tips to make applying for the SBA PPP Loan Forgiveness Application smooth and efficient. For the full guidelines on the SBA's PPP loans, please visit our website, mycapecodbank.com/covid-19-information-for-businesses. PPP Loan Increase Opportunity for Seasonal Businesses Some PPP loans were approved for seasonal employers and for partnerships before additional calculation guidance was issued. As a result, those businesses may not have received the maximum PPP loan for which they are eligible. This interim final rule authorizes lenders to increase existing PPP loans to seasonal employers and partnerships – provided the lender has not submitted Form 1502 for the loan and the borrower provides calculation documentation to substantiate the increased loan amount -- to include appropriate amounts to permit the seasonal employer to calculate its maximum loan amount using the alternative criterion posted on 4/28/20, or to cover partner compensation in accordance with the interim final rule posted on 4/14/20. If the loan has already been disbursed, a second disbursement for this purpose is permitted. Although subject to change, at this time The Coop is accepting applications to increase PPP loans, for those who are eligible, through 12pm on May 27, 2020. If you think this may apply to you and have a question about eligibility, please contact your relationship manager to discuss. PPP Rules for Seasonal Employers Seasonal employers that elect to use a 12-week period between May 1, 2019 and September 15, 2019 to calculate their maximum PPP loan amount can make all the required certifications on the Borrower Application Form. The application form requires applicants to certify that “The Applicant is eligible to receive a loan under the rules in effect at the time this application is submitted that have been issued by the Small Business Administration (SBA) implementing the Paycheck Protection Program.” On April 27, 2020, The Treasury issued an interim final rule allowing seasonal borrowers to use an alternative base period for purposes of calculating the loan amount for which they are eligible under the PPP. An applicant that is otherwise in compliance with applicable SBA requirements, and that complies with Treasury’s interim final rule on seasonal workers, will be deemed eligible for a PPP loan under SBA rules. Instead of following the instructions on page 3 of the Borrower Application Form for the time period for calculating average monthly payroll for seasonal businesses, an applicant may elect to use the time period in Treasury’s interim final rule on seasonal workers. We understand the complexity of this loan program and the speed at which things are moving. If you have any questions or concerns, please reach out to your Commercial Relationship Manager or Branch Manager – Small Business Specialist. We're here to help. Be well, Lisa Oliver President & CEO