Paycheck Protection Program

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Paycheck Protection Program

The German American Bank team is committed to keeping you informed and helping you work through the Paycheck Protection Program (PPP) Forgiveness process.

PPP Loan Forgiveness Program

Before you begin the forgiveness process, please carefully review the information below provided by the Small Business Administration (SBA), the US Treasury, and German American, including documents needed to prepare your application, detailed instructions for filling out the forgiveness form, and links to the 3508S, 3508EZ and 3508 forms.

Documents Needed for Forgiveness 3508S Form

The information contained in this page is based on laws, rules, regulations, and related guidance with respect to the PPP, including guidance issued by the U.S. Small Business Administration (SBA) on August 11, 2020. This information may be updated periodically. In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance.

Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application Form 3508S

  • PPP Loan Forgiveness Calculation Form 3508S
  • Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:

a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.

b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:

i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and

ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.

c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.

  • Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.

a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.

b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.

c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments

Documents that Each Borrower Must Maintain but is Not Required to Submit

All records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements. The Borrower must retain all such documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.

Documents Needed for Forgiveness 3508EZ Form

The information contained in this page is based on laws, rules, regulations, and related guidance with respect to the PPP, including guidance issued by the U.S. Small Business Administration (SBA) on August 11, 2020. This information may be updated periodically. In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance.

Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application Form 3508EZ

  • PPP Loan Forgiveness Calculation Form 3508EZ
  • Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of one or more of the following:

a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.

b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:

i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and

ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.

c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.

d. If you checked only the second box on the checklist on page 1 of these instructions, the average number of full-time equivalent employees on payroll employed by the Borrower on January 1, 2020 and at the end of the Covered Period.

  • Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.

a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.

b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.

c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments

Documents that Each Borrower Must Maintain but is Not Required to Submit

  • Documentation supporting the certification that annual salaries or hourly wages were not reduced by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period relative to the period between January 1, 2020 and March 31, 2020. This documentation must include payroll records that separately list each employee and show the amounts paid to each employee during the period between January 1, 2020 and March 31, 2020, and the amounts paid to each employee during the Covered Period or Alternative Payroll Covered Period.
  • Documentation regarding any employee job offers and refusals, refusals to accept restoration of reductions in hours, firings for cause, voluntary resignations, written requests by any employee for reductions in work schedule, and any inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020.
  • Documentation supporting the certification, if applicable, that the Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period (other than any reductions that arose from an inability to rehire individuals who were employees on February 15, 2020, if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020). This documentation must include payroll records that separately list each employee and show the amounts paid to each employee between January 1, 2020 and the end of the Covered Period.
  • Documentation supporting the certification, if applicable, that the Borrower was unable to operate between February 15, 2020 and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. This documentation must include copies of the applicable requirements for each borrower location and relevant borrower financial records.
  • All records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements. The Borrower must retain all such documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request.

Documents Needed for Forgiveness 3508 Form

The information contained in this page is based on laws, rules, regulations, and related guidance with respect to the PPP, including guidance issued by the U.S. Small Business Administration (SBA) on August 11, 2020. This information may be updated periodically. In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance.

Documents that Each Borrower Must Submit with its PPP Loan Forgiveness Application

  • PPP Loan Forgiveness Calculation Form
  • PPP Schedule A
  • Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of one or more of the following:

a. Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.

b. Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:

i. Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and

ii. State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.

c. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount (PPP Schedule A, lines (6) and (7)).

  • FTE: Documentation showing (at the election of the Borrower):

a. the average number of FTE employees on payroll per week employed by the Borrower between February 15, 2019 and June 30, 2019;

b. the average number of FTE employees on payroll per week employed by the Borrower between January 1, 2020 and February 29, 2020; or

c. in the case of a seasonal employer, the average number of FTE employees on payroll per week employed by the Borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive 12-week period between May 1, 2019 and September 15, 2019.

The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period.

  • Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.

a. Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.

b. Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments.

c. Business utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments.

Documents that Each Borrower Must Maintain but is Not Required to Submit

  • PPP Schedule A Worksheet or its equivalent and the following:

a. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 1, including the “Salary/Hourly Wage Reduction” calculation, if necessary.

b. Documentation supporting the listing of each individual employee in PPP Schedule A Worksheet Table 2; specifically, that each listed employee received during any single pay period in 2019 compensation at an annualized rate of more than $100,000.

c. Documentation regarding any employee job offers and refusals, refusals to accept restoration of reductions in hours, firings for cause, voluntary resignations, written requests by any employee for reductions in work schedule, and any inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020.

d. Documentation supporting the certification, if applicable, that the Borrower was unable to operate between February 15, 2020, and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. This documentation must include copies of the applicable requirements for each borrower location and relevant borrower financial records.

e. Documentation supporting the PPP Schedule A Worksheet “FTE Reduction Safe Harbor 2.”

Filing for Forgiveness with German American Bank

Loans of $50,000 or Less

Oct. 16, 2020 - The Small Business Administration (SBA), in consultation with the Department of  Treasury, has provided much anticipated additional guidance concerning the forgiveness of Paycheck Protection Program (PPP) loans. The SBA has defined two tiers of PPP loan amounts in this guidance: PPP loans $50,000 or less or PPP loans greater than $50,000. If you are ready, you may now follow the guidance below to electronically submit your forgiveness form and supporting documents back to German American Bank. As your PPP lender, we will then decision and upload your completed forgiveness forms into the SBA portal for final forgiveness.

Forgiveness applications:

You can apply for forgiveness using a much abbreviated application form 3508S. The streamlined 2-page Form 3508S includes certifications from the borrower, yet does not require calculations to be submitted with the application. Only supporting documentation must be submitted with the application verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain their documentation supporting their certification for six years as the SBA may request information and documents to review calculations as part of a review process should they choose to do so. Borrowers that use form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages.

Form 3508S detailed form instructions from the SBA.

To File For Forgiveness:
Please click the link below (or copy and paste the URL into your browser), which will allow you to complete, sign and submit the forgiveness form electronically to German American Bank’s portal. It will also allow you to upload the required supporting payroll and non-payroll documentation as set forth on page three (3) of the 3508S instructions.

Tips before you begin your electronic application:

  1. Have all of the information and supporting documents for attachments available to you when you access the portal.If information is missing, it will delay the timing of your forgiveness application.
  2. You will be asked for the SBA PPP Loan Number and the German American Bank PPP Loan Number, which are the same and can be found on your original loan document.
  3. The system will not save uncompleted applications, yet you will be able to exit out and start the electronic application process again.

Form 3508S Forgiveness Application:  https://germanamerican.com/3508S

 

You will receive confirmation from German American Bank when your complete forgiveness application has been reviewed and successfully submitted into the SBA portal. You may receive follow up questions or requests for clarifications or additional information from us before we finalize your forgiveness application submission. Please note that the SBA ultimately has to approve your forgiveness application after our submission. The SBA has 90 days to accept and make forgiveness payment. We will notify you of the forgiveness amount after it is remitted to us by the SBA. Any unforgiven amount will then be repaid on the terms of your PPP note.

NOTES:

  • If you received an EIDL (Economic Impact Disaster Loan) advance directly from the SBA, your PPP loan forgiveness amount may be reduced by the amount of the advance.
  • If for any reason you do not want to apply for the PPP loan forgiveness, your PPP loan is a 1% fixed rate pursuant to the terms of your promissory note with a term of two (2) years if your loan closed on or before June 5, 2020, or five (5) years if your loan closed after June 5, 2020. There are no prepayment penalties or fees. Your first monthly payment of any loan amount which is not forgiven will be 16 months from the date you received your PPP loan funds. Originally your PPP loan was set to start repayment 6 months from the date you received your PPP loan funds.

Loans Greater Than $50,000

Oct. 16, 2020 - The Small Business Administration (SBA), in consultation with the Department of  Treasury, has provided much anticipated additional guidance concerning the forgiveness of Paycheck Protection Program (PPP) loans. The SBA has defined two tiers of PPP loan amounts in this guidance: PPP loans $50,000 or less or PPP loans greater than $50,000. If you are ready, you may now follow the guidance below to electronically submit your forgiveness form and supporting documents back to German American Bank. As your PPP lender, we will then decision and upload your completed forgiveness forms into the SBA portal for final forgiveness.

Forgiveness applications:

You will choose to complete either the 3508EZ or the 3508 form based on the following guidance. Detailed form instructions are included in links below to help you prepare for your electronic submission.

1. Form 3508EZ can be used if you are a borrower who:

  • is self-employed, independent contractor or sole proprietor and have no employees

OR

  • did not reduce employees’ salaries or wages by more than 25% and did not reduce your employee numbers or hours OR
  • did not reduce employees’ salaries or wages by more than 25% and were unable to operate at the same levels as before due to heath directives.

Form 3508EZ detailed form instructions from the SBA.

2. Form 3508 is used If you are a borrower who does not meet the criteria for the EZ forgiveness form listed above.

Form 3508 detailed form instructions from the SBA.

If you selected the eight (8) week coverage period OR if you selected the twenty-four (24) week coverage period and are ready to file early, please complete the appropriate forgiveness form. Remember, if you apply for forgiveness before the end of your elected coverage period AND have reduced employees’ salaries or wages in excess of 25%, you must account for the excess salary reduction for the full eight (8) week or twenty-four (24) week period. If you are still waiting for your twenty-four (24) week coverage period to end in order to optimize your forgiveness before filing, please complete the appropriate form when you are ready.

To File For Forgiveness:
Please click the applicable link below (or copy and paste the applicable URL into your browser), which will allow you to complete, sign and submit the forgiveness form electronically to German American Bank’s portal. It will also allow you to upload the required supporting payroll and non-payroll documentation as set forth on page four (4) of the 3508EZ instructions or page six (6) of the 3508 instructions.

Tips before you begin your electronic application:

  1. Have all of the information and supporting documents for attachments available to you when you access the portal.If information is missing, it will delay the timing of your forgiveness application.
  2. You will be asked for the SBA PPP Loan Number and the German American Bank PPP Loan Number, which are the same and can be found on your original loan document.
  3. The system will not save uncompleted applications, yet you will be able to exit out and start the electronic application process again.

For 3508EZ Forgiveness Application:  https://germanamerican.com/3508EZ

Form 3508 Forgiveness Application:  https://germanamerican.com/3508

 

You will receive confirmation from German American Bank when your complete forgiveness application has been reviewed and successfully submitted into the SBA portal. You may receive follow up questions or requests for clarifications or additional information from us before we finalize your forgiveness application submission. Please note that the SBA ultimately has to approve your forgiveness application after our submission. The SBA has 90 days to accept and make forgiveness payment. We will notify you of the forgiveness amount after it is remitted to us by the SBA. Any unforgiven amount will then be repaid on the terms of your PPP note.

NOTES:

  • If you received an EIDL (Economic Impact Disaster Loan) advance directly from the SBA, your PPP loan forgiveness amount may be reduced by the amount of the advance.
  • If for any reason you do not want to apply for the PPP loan forgiveness, your PPP loan is a 1% fixed rate pursuant to the terms of your promissory note with a term of two (2) years if your loan closed on or before June 5, 2020, or five (5) years if your loan closed after June 5, 2020. There are no prepayment penalties or fees. Your first monthly payment of any loan amount which is not forgiven will be 16 months from the date you received your PPP loan funds. Originally your PPP loan was set to start repayment 6 months from the date you received your PPP loan funds.