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SBA Paycheck Protection Program

PPP Loan Forgiveness Information

During this trying time, we thank you for trusting First Community Bank to help process your PPP loan with the SBA.

The updates below include the most impactful changes to the PPP loan forgiveness requirements and processes that we would like to highlight for you. As new information is shared, we will post it here for your reference. Please check back often, or reach out to your banker if you have specific questions about your loan.

 

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August 5th Update

Accepting PPP Loan Forgiveness Applications Beginning August 10th 

The U.S. Treasury and the SBA have announced plans to begin accepting applications for PPP loan forgiveness.

Beginning Monday, August 10, 2020, PPP borrowers can access the First Community Bank digital forgiveness platform using the following link: https://firstcommunitysc.expressbankloan.com/2/#/match.

With access to the forgiveness platform, borrowers may begin to familiarize themselves with the forgiveness process, but as a reminder, each PPP borrower has up to 10 months following the end of their Covered Period to apply for forgiveness.


July 7th Update

Application Deadline Extension 

The period in which business owners can apply for PPP loans has been extended to August 8, 2020. In order to meet the SBA's deadline, all applications through First Community Bank must be submitted by close of business on August 5, 2020.


June 23rd Update

Key Timeline Adjustments

  Covered Period

 

Time to spend PPP funds has been extended from eight (8) weeks to twenty-four (24) weeks

Deferral Period

Payments will be deferred through the covered period and until the SBA decisions the forgiveness amount

Application Deadline

The deadline to apply for loan forgiveness has been extended to ten (10) months following the covered period

 

Approved Uses

  • Business owners can now spend up to 40% of PPP loan proceeds on mortgage interest, rent & utilities and are only required to spend at least 60% of PPP loan proceeds on payroll costs. It is important to note that at least 60% of PPP funds must be used for payroll costs in order to be eligible for full forgiveness. If the borrower does not meet the 60% requirement during the covered period, the borrower is still eligible for partial forgiveness. 

Repayment Term

  • For PPP loans made after June 5, 2020, borrowers automatically have up to five (5) years to repay their loan.
  • For PPP loans made before June 5, 2020, the new law allows each borrower to renegotiate the term of their loan with their lender from the original two (2) years to up to five (5) years. It is important to note that the change in term from two (2) to five (5) years for PPP loans made before June 5, 2020 is not mandated by the new legislation, but rather is subject to negotiation and agreement between the borrower and the bank. It should also be noted that the borrower must apply for forgiveness within ten (10) months following the twenty-four (24) week covered period and have received the SBA’s final forgiveness decision before these terms can be negotiated.

 

Future Updates

The PPP loan forgiveness process continues to evolve daily, but our goal of making it a positive experience for you remains the same. Rest assured that we will communicate more information as it becomes known. In the meantime, please reach out to your banker with any questions you may have and continue to refer back to this page. Thank you for choosing First Community Bank to assist you with your banking needs.

Below are related links for your reference:

Updated PPP Application

             Small Business Administration

             US Treasury 

 

Looking for the main SBA PPP page? Click here