June 11, 2020
As we continue to monitor changes to the Paycheck Protection Program (PPP), we want to share the following program updates that were included in the Paycheck Protection Program Flexibility Act of 2020.
The Paycheck Protection Program Flexibility Act of 2020 provides the following updates:
- Extends the amount of time (“Covered Period”) borrowers have to spend PPP funds while remaining eligible for forgiveness from eight weeks to 24 weeks.
- Lowers the amount that must be spent on payroll costs from 75 percent to 60 percent.
- Extends to Dec. 31 the period in which employers may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable loan amount.
- Replaces the six-month deferral of payments due under PPP loans with deferral until the date on which the amount of loan forgiveness is remitted to the lender.
- Eliminates a provision that makes PPP loan recipients who have such indebtedness forgiven ineligible to defer payroll tax payments.
- In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.
A joint statement released by the SBA and Treasury can be found here.
We anticipate additional guidance and clarification to come from the Small Business Administration (SBA) and the U.S. Treasury (Treasury) very soon, including updates to the current published forgiveness application.
At this time, there is no need to provide information to CBTC related to forgiveness. We will notify you once final guidance for such documentation has been issued. PPP program guidelines and information can also be found at the Treasury and SBA.
Thank you for allowing us to assist you and please talk with your CBTC Banker if you have questions.
June 1, 2020
We appreciate the opportunity to serve as your lending partner for the Paycheck Protection Program (PPP). We continue to monitor the guidance released by the U.S. Treasury (Treasury) and Small Business Administration (SBA). Congress is currently working on new legislation that may impact certain PPP program guidelines. We will provide additional information as is becomes available.
The Treasury and SBA have released the preliminary PPP Loan Forgiveness Application (https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf). We do expect updates to this application as new legislation is passed, however, we do recommend borrowers review the current application to understand the expected attestations, calculations, and supporting documents needed to for the loan forgiveness provision. As a reminder, there is no need to submit this application form to CBTC at this time. As always, we invite you to talk with a CBTC banker if you have any questions.
April 16, 2020
The Treasury and Small Business Administration (SBA) have announced the initial funding for the Paycheck Protection Program has been fully utilized. Our Commercial Bank and Trust Team has worked nonstop since the program was opened on April 3rd to process and fund the tremendous volume of SBA applications submitted. We have seen the significant impact this program has had for the businesses and communities we serve. Commercial Bank and Trust continues to support the Tennessee Bankers Association, American Bankers Association, and the Independent Community Bankers Association as they encourage Congress to approve additional funding for the Paycheck Protection Program. Additional updates from the Treasury and Small Business Administration will be provided as they become available. If additional funding is approved, Commercial Bank and Trust will be ready to move forward. We encourage you to contact your CBTC banker with any questions or needs you may have. We are here to serve you and remain committed to providing financial solutions through these challenging times.
April 14, 2020 Update
Thank you to our many clients that continue to reach out to us regarding the options available through SBA under the CARES Act. We are pleased to report the application, approval, and funding process continues with the Paycheck Protection Program (PPP) through SBA. The CBTC team has worked nonstop over the past twelve days to answer questions and assist businesses with the options available through the recently approved CARES Act. As of last night, these companies have received approval to fund 4,709 jobs so far through the Paycheck Protection Program and CBTC. We continue to accept and process applications for the PPP, and encourage you to contact your CBTC banker should you have questions or need additional information regarding the program or other options available through SBA under the CARES Act.
April 3, 2020 update
Commercial Bank is accepting complete application packages and has begun our internal validation procedures so that we will be prepared to submit your application to the SBA as soon as they grant the bank access to their portal.
We will continue to provide updates on our website. If you have questions or need additional information regarding the process to submit, we encourage you to contact your CBTC banker directly.
March 31, 2020
Commercial Bank and Trust Company Clients:
The recent announcement and approval of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and SBA Disaster Assistance programs may provide economic assistance for your company during the COVID-19 health crisis. Please know that your bankers at Commercial Bank and Trust Company are here to help you navigate the process. We will continue to monitor the updates provided by SBA to keep you informed and in a position to move forward with the appropriate course of action once the details are finalized.
SBA options under the CARES Act include:
Economic Injury Disaster Loans (EDIL)
- Funds may be used for payroll, working capital, operating expenses, debt repayment
- Maximum loan amount is $2 million
- Collateral is not required for loans up to $25,000
- Available directly through SBA, apply online by clicking here
Paycheck Protection Program (PPP)
- Application procedures and requirements continue to be developed by the Small Business Administration for the Paycheck Protection Program. The terms and conditions are subject to change by SBA or the Department of Treasury. Updates will continue to be posted on our website at www.cbtcnet.com.
- The PPP will provide 100% SBA guaranteed loans to cover specific operating costs.
- The maximum loan amount will be capped at two months of the average monthly payroll costs from the last year plus an additional 25% of the two-month amount. The amount is subject to a $10 million cap.
- A portion of the loan proceeds funded as part of the PPP, up to or equal to 8 weeks of covered expenses, may be forgiven by the SBA if certain requirements are met.
- Additional information is available though the Small Business Administration by clicking here, or the Department of Treasury by clicking here.
In addition to these lending tools, we encourage you to use our online banking options for convenient and flexible access to your Commercial Bank and Trust Company accounts. As a reminder, in an effort stop the spread of the COVID-19 virus, we will continue to redirect traffic to our drive-thru windows and schedule lobby visits by appointment only. Please contact your local CBTC banker with any questions. We appreciate your continued relationship and look forward to serving you.
Mott Ford, Chairman and CEO