PPP forgiveness - Leumi USA

As your partner, we want to guide you through the PPP loan forgiveness process

Bank Leumi will begin accepting PPP loan forgiveness applications on August 3, 2020. We will assist you through the PPP loan forgiveness process. Please read the below steps carefully.

Start here

Step 1: Determine when to apply

You may apply at any time starting on August 3. In determining when to apply, be sure you have used all of your PPP loan proceeds for forgivable expenses (you have up to 24 weeks to do so) and make restorations to any reduction in employee compensation or employee numbers, if possible.

Step 2: Choose your application form

You may use one of two application forms: 3508EZ or 3508. Select the form that applies to you and begin gathering the information you will need to apply.

Step 2: Choose your application form

You may use one of two application forms: 3508EZ or 3508. Select the form that applies to you and begin gathering the information you will need to apply.

Step 3: Get your application from Bank Leumi

When you are ready to apply, contact your Banking Team to receive a DocuSign link to the application package. You will be asked to complete and sign the application form and upload supporting documentation in DocuSign.

Step 4: Complete your application package

Review the application package checklist in the enclosed How to Apply for PPP Forgiveness, and complete your application package.

Step 4: Complete your application package

Review the application package checklist (as part of Step 2) and complete your application package.

Step 5: Bank Leumi will review your application

We will make a decision on your application and notify you within 60 days of receiving a complete application package.

Step 6: SBA will review Bank Leumi’s decision

Next, we will send our decision to the SBA. SBA can take up to 90 days to provide us with their decision on your loan forgiveness eligibility.

Step 6: SBA will review Bank Leumi’s decision

Next, we will send our decision to the SBA. SBA can take up to 90 days to provide us with their decision on your loan forgiveness eligibility.

Step 7: Final disposition of your PPP loan forgiveness

If your loan is fully forgiven, we will cancel your note. If there are any outstanding amounts, we will inform you of the schedule for the principal and interest payments.

You did it!

Be sure to keep all of your records for at least six years from the date the loan is forgiven or repaid in full. Remember, we are here for you every step of the way.

FAQ on Loan Forgiveness

On August 4, 2020, the SBA published guidance Frequently Asked Questions (FAQs) on PPP Loan Forgiveness.

The SBA clarifies several aspects of the PPP loan forgiveness process, including how to calculate certain payroll and nonpayroll costs as well as when to factor in certain reductions.
The guidance is organized into the following sections:

General Loan Forgiveness FAQs
Loan Forgiveness Payroll Costs FAQs
Loan Forgiveness Nonpayroll Costs FAQs
Loan Forgiveness Reductions FAQs

The full text of FAQs on PPP Loan Forgiveness can be accessed here.
The SBA continues to update its guidance and publish clarifying interim final rules. Please monitor for such updates here.
If you have any questions about this alert, please contact your Bank Leumi representative.

You can find additional information regarding the PPP loan forgiveness requirements, procedures, and related borrower responsibilities in the following guidance issued by the Small Business Administration (“SBA”):

The PPP rules are subject to change. You should monitor the Treasury Department website at https://home.treasury.gov/, for up-to-date information. Bank Leumi USA^® (“Bank Leumi”) is a New York State chartered, FDIC insured bank. This communication includes information on the Bank Leumi’s requirements with respect to forgiveness calculation. Nothing in this notice should be construed as legal advice or an assurance that the SBA will agree with the Bank Leumi’s standards. If you have any questions regarding your application, please refer to the SBA resources provided above and speak with your legal advisor or accountant.