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** FORGIVENESS PROCESS UPDATE **

On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021 which provides clarification for the tax implications of forgiveness and the application of EIDL loans, as well as a further streamlined process for all PPP loans $150,000 and less. Once the SBA releases guidance on these changes, Fidelity will provide further updates to our clients.

Forgiveness Process Deadline

Applications for loan forgiveness are due 10 months from the end of your 24 week payroll period. However, we encourage you to apply for forgiveness as soon as you receive a link to the online forgiveness application portal.

Automatic Deferral Period Extended

The Paycheck Protection Program FAQs were updated to address the deferral period extension granted by the PPP Flexibility Act of 2020. The extension automatically applies to all PPP loans borrowers and defers payments of principal, interest and fees on PPP loans for 10 months after the origination date. No action is required by you as Fidelity Bank will apply this extension to all PPP loans in accordance with the SBA's guidance, generally providing an additional four months from the first payment date anticipated in your PPP loan's promissory note. Statements for any PPP loan will be mailed 15 days prior to the first due date after the extended deferral period.

Streamlined Forgiveness for PPP Loans $50,000 or less

**PLEASE NOTE: The following is subject to change based on the Consolidated Appropriations Act, 2021**

On October 8, 2020, the Small Business Administration released a much-anticipated, streamlined loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less. Under the streamlined rules, eligible borrowers will be required to submit a two page application which includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years.

Forgiveness Applications for PPP Loans greater than $50,000

**PLEASE NOTE: The following is subject to change based on the Consolidated Appropriations Act, 2021**

We have opened our online portal for PPP Loan Forgiveness for clients with PPP loans greater than $50,000. Clients with loans in these categories should have received a link to our online forgiveness application portal via email by October 16, 2020. To make the process as simple as possible, please be sure to use the CHECK YOUR EZ FORM ELIGIBILITY button when first logging into the portal.

Forgiveness Process Next Steps

Upon receipt of your application for forgiveness, the bank will review your application and the documentation provided for accuracy. If you are not eligible for full forgiveness, the bank will be in contact with you. If you are eligible for full forgiveness, the bank will send you your application electronically in DocuSign, which will be forwarded to the SBA for final determination. The SBA then has 90 days to validate forgiveness. Upon confirmation from the SBA, the bank will communicate the decision. All clients should have received a link to access their forgiveness application portal. Please review the following video on how to complete this process.

Resources

• US Treasury Department CARES Act Overview Page: https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses

• Fidelity Bank PPP Customer Service: sbajamie@bankwithfidelity.com