Payroll Protection Program (PPP) SBA Loan Info

UPDATE May 5, 2021:  PPP Funds Exhausted: SBA is No Longer Accepting Loan Applications 
The Small Business Administration has just release statement that the Paycheck Protection Program funding has been exhausted and that the PPP application portal will stop accepting applications from most lenders. Anderson Brothers Bank cannot accept per SBA any new PPP applications and ABB is working to process all applications currently received. Someone from ABB will be in contact to advise the status of those pending applications as we learn more. 
It is our sincere pleasure to serve you in the PPP process. Your business is valuable to us and our community. We pledge ABB`s full support to you.  This resource page has been created to keep you up to date on all information concerning the PPP process.  Please be mindful of the dates of each update, so that you have the most recent information at hand.  We are here to guide you through the process.  Contact your local branch or call 1-800-345-8081 with any questions you have. 
You may also visit or for additional information and updates.
Update-1/19/21:  SBA, in consultation with the Treasury Department, has recently released additional PPP Guidance and resources.
There are two types of PPP loans: 
  • First Draw
    • Eligible businesses who have NOT had a prior PPP loan
    • Businesses with 500 or fewer employees
    • Proceeds used for payroll, rent, utilities, healthcare
    • Application is now available:
  • Second Draw 
    • Eligible businesses who have had prior PPP loan.
    • Application is now available:
    • Prior PPP loan has been or will be used in full prior to second loan disbursement
    • Borrower has no more than 300 employees
    • Demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
    • Max Loan is $2 Million

Interim Final Rule on Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act (Released 1/19/2021)
PPP Loan Forgiveness Application Form 3508 & Instructions (Revised 1/19/21)
3508 Loan Forgiveness Form & Instructions
PPP Loan Forgiveness Application Form 3508EZ & Instructions (Revised 1/19/21)
3508EZ Loan Forgiveness Form & Instructions
PPP Loan Forgiveness Application Form 3508S & Instructions (Revised 1/19/21)
3508S Loan Forgiveness Form & Instructions
Borrower's Disclosure of Certain Interests (Released 1/19/21) 
Update 1/19/21:  As First and Second Draw PPP Loan applications are being taken, ABB wants you to have all up to date information needed for the process.

  Overview of First Draw PPP   Overview of Second Draw PPP

How to Calculate Maximum Loan Amounts for First Draw PPP

Update 1/15/21:  SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021.
SBA is currently accepting Second Draw PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets, which includes approximately 5,000 institutions, including community banks, credit unions, and farm credit institutions. The program will open to all lenders on January 19, 2021. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate income neighborhoods.

For more information: SBA Paycheck Protection Program
Quick Links to full details and applications:

PPP Forgiveness

Now we begin our focused attention on the forgiveness phase. 
Update 10/21/2020:  We will begin mailing notification letters to all PPP Loan Customers very soon.  The purpose of the letter will be to provide a deferment of the first payment date for PPP loan.  The notification letter is being sent as mandated by SBA in regard to the PPP loan payments scheduled.  If you have any questions or concerns feel free to reach out to your loan officer that assisted you with the PPP application and loan. 

Law background (not all-inclusive):
  • The CARES Act was signed into Law on March 27, 2020. Section 1102 of the Act temporarily permitted the Small Business Administration (“SBA”) to implement the Paycheck Protection Program (“PPP”).
  • The Paycheck Protection Program Flexibility Act of 2020 was signed into Law on June 5, 2020 
Law impact to Anderson Brothers Bank (“ABB”) PPP Loan Customers:
  • The implementation of the Laws, as mentioned above, along with many compliance rules issued by the SBA, may have created “forgiveness” anxiety and confusion for PPP borrowers nationwide.
  • The terms and conditions governing the PPP Loans are issued and controlled by the SBA.
  • The biggest concern for ABB`s PPP borrowers is forgiveness. You have your PPP loan, but what is the next step? We will explain below.
  • To best understand the forgiveness steps and compliance rules visit the Treasury website link below:       
  • The biggest source of confusion is the “covered” period regarding payroll costs. Below is an excerpt which best explains the covered period definition. The excerpt below is from the Treasury website “Frequently Asked Questions on PPP Loan Forgiveness” dated August 11, 2020 (see the referenced link above):
PPP Forgiveness FAQ notations:
1 The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP loan disbursement date, or
(2) if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day)
Covered Period. For example, if the borrower is using a 24-week Covered Period and received its PPP loan
proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period
is Sunday, October 4. In no event may the Covered Period extend beyond December 31, 2020.
2 Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using
the 24-week (168-day) period (or for loans received before June 5, 2020 at the election of the borrower,
the eight-week (56-day) period) that begins on the first day of their first pay period following their PPP loan disbursement
date (i.e., the “Alternative Covered Period”). For example, if the borrower is using a 24-week Alternative Payroll
Covered Period and received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period
following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is
April 26 and the last day of the Alternative Payroll Covered Period is Saturday, October 10. In no event may the
Alternative Payroll Covered Period extend beyond December 31, 2020.

  • As long as a Borrower submits its loan forgiveness application within ten months of the completion of the Covered Period (as defined above), the Borrower is not required to make any payments until the forgiveness amount is remitted to ABB by SBA. Interest accrues during the time between the disbursement of the loan and SBA remittance of the forgiveness amount. ABB is responsible for notifying the borrower of remittance by SBA of the loan forgiveness amount (or, SBA determines no amount of the loan is eligible for forgiveness) and the date on which the Borrower’s first payment is due, as applicable.
    • If the loan is fully forgiven, the Borrower is not responsible for any payments.
    • If only a portion of the loan is forgiven, or if the forgiveness application is denied, any remaining balance due on the loan must be repaid by the Borrower on or before the maturity date of the loan.
      • The Borrower is responsible for paying the accrued interest on any amount of the loan that is not forgiven.
PPP Loan Customers Procedures with ABB:
  • There is a lengthy timeline for ABB and SBA to act on these forgiveness applications. This is why we suggest, but cannot require, PPP Borrowers with Loans of less than $150,000 to wait on Congressional action for automatic forgiveness. Congress has several Bills, which are NOT yet Law. One of these Bills will provide automatic forgiveness for PPP loans under $150,000. You, as PPP Borrower, must adhere to the mandatory filing deadline as prescribed by SBA. We will keep you informed as this process with Congress develops.
  • Your ABB Loan Officer will be reaching out to you soon if your loan is $150,000 or greater.
    • You may contact your Loan Officer immediately if you choose.
    • We can provide you some information which may assist you in the forgiveness process.
  • For PPP Borrowers whose loans are less than $150,000, feel free to provide your Loan Officer with a completed forgiveness application, which is form 3508 or 3508EZ, if you have met your required disbursements for PPP Loan forgiveness. 
Modification of PPP Loan:
  • Many of ABB`s PPP Loan customers will have a first payment of principal and interest beginning very soon. Because of changes in the Law and SBA guidelines, it is likely you, the PPP Borrower, may want to delay the start of the monthly installment payments which is allowed within SBA guidelines.
  • Please reach out to your ABB Loan Officer who assisted you with your initial PPP loan. We are prepared to modify your payment structure, as applicable, based on SBA guidelines and Law changes.
Thank you:
It has been our sincere pleasure to serve you in the PPP process. Your business is valuable to you and our community. We pledge ABB`s full support to you.  Thank you!

Quick Links to full details and applications; 

3508S Loan Forgiveness for loans less than $50,000

3508EZ Loan Forgiveness

3508 Loan Forgiveness
For additional SBA tools and information related to PPP, please visit the US Department of the Treasury site.