PayCheck Protection Program

As a certified Small Business Administration (SBA) provider, Horizon Bank will continue to monitor how the CARES Act will be administered, along with specifics on the Paycheck Protection Program (PPP)

The PPP provides cash-flow assistance through 100% federally guaranteed loans to employers who maintain their payroll during this emergency. PPP has a host of attractive features, including forgiveness of up to 8 weeks of payroll, based on employee retention and salary levels, and no SBA fees, and at least six months of deferral with maximum deferrals of up to a year.

The Small Business Administration (SBA) will begin accepting forgiveness applications for the Pay Check Protection (PPP) Loan Program beginning, Monday, August 10th.

Horizon Bank will be utilizing an online portal for the submission and processing of PPP loan forgiveness applications, and will begin accepting PPP applications beginning Tuesday, September 1st.  Horizon Bank PPP loan customers will receive email communication regarding the Horizon Bank forgiveness process, timing and instructions to assist them with the process.

Information regarding the SBA PPP Forgiveness Guidelines and the necessary application forms may be accessed at the Small Business Administration website www.sba.gov.

Questions regarding the forgiveness process may be directed to your loan officer that assisted with the PPP loan or to SBAGovLending@HorizonBank.com.

Preliminary Information Regarding SBA PPP Loan Forgiveness 

While the SBA has provided the PPP Forgiveness Form and instructions, final guidance and procedures are still pending. In the meantime, we recommend the following best practices to prepare you for the Loan Forgiveness Process:

  • Ensure that all disbursements of the PPP loan are for eligible purposes including payroll, mortgage interest, lease expense, utilities, and the refinance of Economic Injury Disaster Loans (EIDL).
     
  • Maintain detailed list and supporting documentation for expenditures to support your use of loan funds and for the forgiveness application and prepare for any SBA audits of your loan.
     
  • Maintain detailed list and supporting documentation regarding the number of employees and their employment status.
     
  • Maintain documentation regarding any Economic Injury Disaster Loans, Advances and Grants, as these will be included in the forgiveness calculation. Please be advised that the amounts of EIDL advances and/or grants will be a reduction to the amount of forgivable PPP loan.