The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in March of 2020. This act includes a provision for SBA loans to businesses meeting certain qualifications with loan forgiveness and payment deferral options. The Paycheck Protection Program is intended to provide capital for businesses negatively impacted by the COVID-19 pandemic. These loans will be originated through SBA 7(a) lenders, including First Community. More information on PPP loans, including information on loan forgiveness, can be found on the SBA website.
The PPP loan program through the SBA is no longer open for new loan applications. If you have already closed on a PPP loan through First Community you should have received an email to apply for loan forgiveness. The email will give you specific instructions on your next steps. If you did not receive the email please contact us [email protected] or click the ‘Questions’ link below.
When applying for loan forgiveness please consult your tax professional. They are qualified to assist you with calculations and documentation. First Community is unable to provide this level of professional assistance and tax guidance.
If a borrower received an EIDL advance, SBA is required to reduce the borrower’s loan forgiveness amount by the amount of the EIDL advance. SBA will deduct the amount of the EIDL advance from the forgiveness amount remitted by SBA to the lender. The lender will be able to confirm the amount of the EIDL advance that will be automatically deducted by SBA from the forgiveness payment by reviewing the borrower’s EIDL advance information in the PPP Forgiveness Platform. The lender will notify the borrower of the loan forgiveness amount remitted by SBA and the date on which the borrower’s first loan payment is due. The borrower must repay the remaining loan balance by the maturity date of the PPP loan