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PPP Loan Forgiveness

If you received a PPP (Paycheck Protection Program) loan for your farm or business, you understand that obtaining the funds is only part of the process.  You also want to have the loan fully forgiven.  If you received your loan here, we can help with the forgiveness process.

The first step is to ensure that you have spent the loan funds.  From the date you received funding, you have between 8-24 weeks to spend those dollars.  To obtain full forgiveness, at least 60% of the funds must be spent on payroll.  All funds may be spent on payroll, or you may spend up to 40% for other purposes, such as utilities, rent, mortgage interest, or other obligations.  

Once the funds have been exhausted and 8-24 weeks have passed since receiving the loan, you are ready to apply for forgiveness.  Please utilize one of the following three forgiveness applications:

If your loan was for $150,000.00 or less, complete SBA Form 3508S.  If your loan was for more than $150,000, review the checklist on page 5 of SBA Form 3508EZ to learn if you are eligible to complete this shorter application, or if the longer SBA Form 3508 is required.  

Please review, complete, and return the appropriate application and all supporting documents to Steve Grams or Jeff Goergen using the Secure File Transfer portal on the bank’s website.  If you have questions about which application is needed or what supporting documents are required, please call (507) 455-2265 and ask to speak to Steve or Jeff.

As Owatonna’s only locally owned community bank, we have been honored to assist our local businesses and farmers secure the funding they so desperately need, and we are ready to help ensure that these loans are fully forgiven.  
 

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