Payroll Protection Program Information:
Effective August 10, 2020, the SBA is accepting PPP forgiveness applications. We at Legacy Bank have been engaged for the past six weeks in continuous efforts to learn about the application and process. The conventional wisdom held by financial institutions, industry groups, and CPAs is that it is best for borrowers to wait at least until the end of their 24-week Covered Period, if not until the end of the year, to apply for forgiveness. We, at Legacy Bank, agree with this.
The reasons for patience are many. To name just a few:
- Uncertain tax treatment of expenses covered by PPP loan proceeds
- Includes State and Federal
- Pending changes to the legislation, to include:
- Simplified application and process
- Presumption of forgiveness for certain qualifying loans
- Second PPP loan for certain borrowers
- Longer time period leading to increased likelihood of full forgiveness
- No penalty for waiting to apply
We will continue our engagement with all things PPP. Please reach out to your local branch with any questions, or if we can help in any way.
Thank you for your continued loyalty as we navigate this process.