Paycheck Protection Program

On March 27, 2020, the CARES Act authorized the U.S. Department of the Treasury to issue regulations for the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA). As an SBA lender, Community National Bank is authorized to originate loans and establish terms and conditions between April, 4, 2020, through June, 30, 2020. If you have any questions about this program or are interested in applying, please contact any CNB Business Lender.

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The Paycheck Protection Program (PPP) was designed to help small businesses adversely impacted by COVID-19. Loans are 100% SBA guaranteed. At least 75% of the loan amount given to business owners must be used to cover payroll costs and a maximum of up to 25% of the funds may be used to cover interest on mortgage payments, rent and utilities. SBA lenders are authorized to get Paycheck Protection loans processed and distribute funds to borrowers as quickly as possible.

Criteria for Borrower Eligibility:

  • Must have fewer than 500 employees, living in the United States
  • Applies to any small business, self-employed, individual contractors, non-profits, tribal business concerns, Veteran organizations, sole proprietors, agriculture, and businesses, regardless of size, in the Accomodation & Food services sector
  • Must have been in operation on February 15, 2020
  • Comply with affiliation rules
  • Borrower must certify they meet the criteria and they have been impacted by COVID-19
  • Any size business in the Accommodations, Hotels and Restaurant industries.

On Friday, May 15, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.

A PPP loan borrower must request forgiveness of PPP loan proceeds by filing SBA Form 3508, Paycheck Program Loan Forgiveness Application. The application has four components:

  • The PPP Loan Forgiveness Calculation Form
  • PPP Schedule A 
  • The PPP Schedule A Worksheet
  • PPP Borrower Demographic Form.

Download SBA Form 3508 PPP Forgiveness Application

Important Notes and Steps:

  • The SBA loan number can be found on the first page of the Note. Please call your lender to confirm the actual funding date.
  • The option for borrowers to use an "alternative payroll covered period" applies only to payroll costs to align with borrowers' regular payroll cycles and not the eligible non-payroll costs
  • There is some opportunity for non-payroll costs to be paid outside of the Covered Period. An eligible non-payroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next billing date, even if the billing date is after the Covered Period. Nonpayroll costs may not exceed 25% of the forgiveness amount.

  • If you received an Economic Injury Disaster Loan (EIDL) Advance (the grant portion of EIDL) this information will be inserted in the top section of the application. The amount of the EIDL Advance will reduce Line 11 Forgiveness Amount, as noted.
  • Self-employment and general partner income is a critical area to understand for qualifying individuals. If you are including amounts paid to self-employed individuals or partners on Line 9 of Schedule A, you need to pay attention to the language included in the instructions: (Line 9: Enter any amounts paid to owners (owner-employees, a self-employed individual, or general partners). This amount is capped at $15,385 (the eight-week equivalent of $100,000.00 per year) for each individual or the eight-week equivalent of their applicable compensation in 2019, whichever is lower.

If you received your PPP loan from Community National Bank, please submit your completed Loan Forgiveness Application and supporting documentation as soon as possible after your 8-week coverage period. We want to ensure enough time for our Lenders to review, follow up with you and promptly hit SBA forgiveness deadlines. Your Lender will not be verifying your calculation of loan forgiveness; however they would be happy to assist you in understanding SBA's requirements and will be ensuring that the application is complete and submitted properly. Please use our PPP Forgiveness Checklist to confirm that you have all of the necessary documents included with your application.

Community National Bank PPP Forgiveness Checklist