First National Bank of South Miami

At First National Bank of South Miami our bankers have helped hundreds of business and professionals during this past year by being one of the FIRST institutions to bring PPP to our community. We were also one of the few institutions that provided our clients with individualized attention and informative webinars to help our clients through the PPP process, whether that was the PPP-First Draw, Second Draw and now, the Forgiveness process.

We are proud of our bankers and proud of our contribution to our community.

At this, now the final stage of PPP, we invite you to apply for Forgiveness and Thank you for your loyalty and continued confidence in this YOUR community bank.

 

Applying for Forgiveness?

The forgiveness process is an electronic process. It’s designed to make it easy and efficient for you to complete the application and provide attachments electronically. Although we are providing you below links to the various applications and their instructions this is solely being done so that you become familiar with the information needed and their requirements. First National Bank of South Miami prides itself in providing personal individual service to our clients. If you need any assistance through the forgiveness process, please reach out to your FNBSM personal banker.

When should I apply for Forgiveness?

At this stage our recommendation is that you should apply as soon as possible. The deferral period for principal or interest is 10 months following the end of your Covered Period. For most of our PPP-First Draw clients the end of the Covered Period (assuming 24-week Covered Period) was in October 2020. Ten months following that would be August 2021. Given the volume of forgiveness applications it may be several months for the SBA to process and approve Forgiveness. For this reason, we are encouraging our clients to begin the process NOW.

What is the right Forgiveness application for me?

There are 3 different applications for applying for forgiveness. In the following paragraphs we will explain which is the right application for You and provide you with some important information that will help you in this process.

The following is provided as a courtesy to clients of FNBSM to assist them in the Forgiveness process. They are NOT intended to be all-inclusive and Borrowers are cautioned to ensure they fully review and comply with the instructions provided for the appropriate Forgiveness application.

Important information about Forgiveness:

  • PPP-First Draw Borrowers will receive a link from onlineapplications@wolterskluwer.com to apply for Forgiveness. If you do not receive by April 15,2021, check your SPAM or JUNK folder first. If you still do not see the link, please send an email to: PPP@FNBSM.com . Please include the name of the business that received the PPP funds and, if readily available, the FNBSM loan number together with email information on who the best person is to receive the link.
  • PPP-Second Draw Borrowers whose Covered Period has passed and who have spent their PPP funds may apply NOW. Simply email PPP@FNBSM.com and lets us know that you are READY. We will send you a personalized link to the application.
  • Applications for Forgiveness may ONLY be submitted electronically through the link provided.
  • Each PPP loan (whether First Draw or Second Draw) must apply separately.
  • If you are applying for Forgiveness for PPP-Second Draw, you must FIRST apply for Forgiveness for PPP-First Draw. To apply for Forgiveness for PPP - Second Draw you do not have to wait to receive forgiveness of the First Draw application.
  • Although optional, the completion of the PPP Borrower Demographic Information Form is encouraged.
  • Be sure to thoroughly read all detailed instructions, regardless of which Form you use, and definitions of terms to ensure compliance with the Program.
  • Answers to questions concerning the Program requirements, Interim Final Rules, Frequently Asked Questions and any guidance provided by SBA may be found at https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program
  • COVERED PERIOD always begins on the date of initial loan funding – even if loan had multiple funding.
  • A minimum of 60% of the Forgivable Loan Amount MUST have been spent on PAYROLL Costs.
  • Your forgiveness application does NOT have to be for the FULL amount of your PPP Loan.
  • If your loan was funded prior to August 8, 2020 (most of FNBSM First Draw loans) AND you are required to submit a SBA Form 3508D disclosure of a controlling interest, the disclosure MUST be submitted no later than 30 days after submission of the forgiveness application. To determine if this applies you may use the following link. https://www.sba.gov/sites/default/files/2021-01/SBA%20Form%203508D%20%281.19.2021%29-508.pdf


Form 3508-S
  • If your PPP- First Draw loan is $150,000 or less this is the Forgiveness form that you need to use.
  • Form 3508 S may only be used if aggregate PPP loans, including affiliates is less than $2,000,000.
  • Although no computations nor documentation will be required with your submission, you MUST retain the documentation and computations that support your application. During the forgiveness process the SBA may request this information. Additionally, you MUST retain the information (documentation and computation) for at least 4 years in the event the SBA performs an audit of your file.
  • If your PPP loan is greater than $50,000 -or- Your PPP loan is $50,000 or less but when you include affiliates your aggregate loans are $2,000,000 or greater -or- You Second Draw PPP loan is $2,000,000, then…
  • FTE and Salary Wage Reduction rule may apply. Please carefully review the instructions on completing the Form 3508S to determine if you are required to follow. Although you may still use this Form 3508-S you may be limited in the forgiveness amount you can apply for.

  • PPP-Second Draw Forgiveness,
    • Borrower MUST submit documentation to support revenue reduction as required by PPP-Second Draw
    • Borrower required to have utilized all First Draw PPP Loan amounts on eligible expenses prior to disbursement of the Second Draw PPP Loan.

 
Form 3508-EZ
  • If your PPP loan is greater than $150,000 and...  
    • you did NOT reduce the salary or hourly wage of any employee by more than 25% during the Covered Period compared to the most recent quarter before the Covered Period.
-AND EITHER-
      • You did NOT reduce the number of employees or the average paid hours of employees between Jan 1, 2020 and the end of the Covered Period.
        • Safe harbor: do not count employees if...
          • You were unable to rehire individuals who were employees on Feb 15,2020 -or-
          • You were unable to rehire similarly qualified employees for unfilled positions on or before 12-31-2020 -or-
          • You reduced an employee’s hours and subsequently when you attempted to restore the employee refused.
-OR-
      • You were unable to operate between February 15,2020 and the end of the Covered Period at the same level of business activity as before Feb 15,2020 due to compliance with requirements established or guidance issued between March 1, 2020 and Dec 31, 2020 by:
        • Secretary of Health and Human Services
        • Director of Centers for Disease Control and Prevention
        • Occupational Safety and Health Administration


Form 3508
Use this form if you are not eligible to qualify for either Form 3508-S or 3508 – EZ.


Other helpful information
    1. In computing the potential forgiveness amount Form 3508 EZ and Form 3508 require that you compare and use the smallest value. The comparison is:
Sum of eligible costs incurred and paid
PPP loan amount

Maximum based on 60% payroll. – it’s here that applicants have been confused. The requirement is that you take total payroll costs and divide by 0.60.

Note: divide and Note: 0.60

The reason is that at least 60% of the maximum forgivable loan amount (may differ from the PPP Loan Amount) MUST be used towards Payroll Costs. By dividing by 0.60 the quotient generates the maximum forgiveness value.



Links to sample Forgiveness applications and instructions


PPP Application 3508

PPP  Application 3508-EZ
PPP Application 3508-S

PPP Application 3508-D






Paycheck Protection Program Loans

PPP-First Draw and PPP Second Draw

Currently, we are NO LONGER accepting NEW applications for either PPP-First Draw or PPP- Second Draw loans.



Previously released Paycheck Protection Program slide presentations:

Topic: PPP Second Draw - Morning Session
Date Recorded: Jan 11, 2021 
Meeting Recording: Click here to view Webinar
 
Topic: PPP Second Draw - Afternoon Session
Date Recorded: Jan 11, 2021 
Meeting Recording: Click here to view Webinar
 



Download one of our helpful PPP Guides

 

Forgiveness, Now or Later?

PPP Presentation Guide

Tracking Expenses

Loan Forgiveness
These are the presentation slides that were used in our webinar explanation on when to take forgiveness. 
Tracking your expenses and applying for forgiveness is the next steps in the PPP program, this guide will help.
Here's  helpful guide on how to track your expenses and maximize your forgiveness for the business.
Learn the answers to this question, what has happened since you received your PPP monies?
 
 

Pre-Recorded Webinars


Topic: PPP Forgiveness, now or later?
Date Recorded: Aug 25, 2020 
Meeting Recording: Click here to view Webinar
 
Topic: PPP Forgiveness, now or later?
Date Recorded: Aug 20, 2020 
Meeting Recording: Click here to view Webinar
 
Topic: PPP Loan Forgiveness Guidelines
Date Recorded: Jun 3, 2020 
Meeting Recording: Click here to view Webinar


Program in participation with the SBA.

1 While we continue to read and disseminate the latest guidance in order to keep our clients informed, we do not present ourselves as experts.  Clients are urged to discuss their specific situation with their professional advisors, such as accountants and attorneys.