paycheck Protection program (PPP)
Automatic Loan Modifications
(i) Loan Forgiveness Covered Period. Extension of the “loan forgiveness covered period” from the 8-week period beginning on the date of loan disbursement to the period commencing on date of loan disbursement and ending on the earlier of (a) the date that is 24 weeks after loan disbursement, or (b) December 31, 2020 (the “Forgiveness Covered Period”). However, please note that if your PPP loan was made before June 5, 2020, you may nonetheless elect to have your Forgiveness Covered Period be the eight-week period beginning on the date of loan disbursement.
(ii) Payment Deferral Period. Extension of payment deferral period from six months after the date of loan disbursement to the earlier of (A) if you submit a loan forgiveness application to Lender within 10 months after the end of the Forgiveness Covered Period, the date identified by Lender when Lender communicates to you that either Lender has received remittance from the SBA of any/all of the loan forgiveness amount or that no loan forgiveness is allowed, or (B) if you do not submit a loan forgiveness application to Lender within 10 months after the end of the Forgiveness Covered Period, the date which falls 10 months after the end of the Forgiveness Covered Period (said earlier date, the “First Payment Date”).
As a result of the June 5, 2020 Paycheck Protection Program Flexibility Act amendment, borrowers are now automatically extended an additional 16 weeks to their initial covered period of 8 weeks, for a total of 24 weeks. The terms of your Agreement shall be modified accordingly. In the event you choose to maintain the original coverage period of 8 weeks and intend to apply for forgiveness at that time, and not have the covered period automatically extended, please notify our institution at your earliest convenience. For additional details regarding PPP loan requirements and forgiveness, please visit the SBA’s Paycheck Protection Program page.
Should you have any questions or concerns, or would like more information please contact:
Richard Bonnet, Business Relationship Manager