Academy Bank has been honored to participate in the PPP, through which we have successfully helped more than 1,000 clients to receive loans crucial to assisting small businesses. As applications are currently closed, we will now turn our attention to the Loan Forgiveness portion of the program. We will provide as much information possible to our clients to help them in full forgiveness on their loans.
The SBA has not yet released full guidance on how loan forgiveness will work going forward, but we will continue to keep our website updated as we receive information. A helpful guide developed by AICPA can be found here.
Please continue to check Academy Bank’s website for updated information that we will include on the site as it becomes available. For specific questions about loan forgiveness, contact firstname.lastname@example.org.
You may also download the U.S. Chamber of Commerce's checklist and guide to learn more about requirements and eligibility. And, here you'll find a list of frequently asked questions.
The borrower may apply to the lender for loan forgiveness subject to specific conditions:
- The employer maintaining or quickly rehiring employees and maintaing salary levels.
- Seventy-five percent (75%) of the forgiven amount must have been used for payroll costs.
- Paycheck Protection Program loan proceeds must have been used for these types of costs, and payments made, between February 15, 2020 and June 30, 2020.
- Payroll costs, excluding the prorated portion of any compensation above $100,000 per year for any person.
- Group healthcare benefit costs and insurance premiums.
- Mortgage interest (but not prepayments or principal payments) and rent payments on leases in existence before February 15, 2020.
- Certain utilities, including electricity, gas, water, transportation, and telephone and Internet access for service that began before February 15, 2020.
- Additional wages paid to tipped employees.
The loan amount forgiven is reduced if the average number of full-time employees is reduced or any employee compensation is reduced by more than 25% as a result of COVID-19.