Ozarks banks handling thousands of Paycheck Protection Program loan forgiveness applications
SPRINGFIELD, Mo. (KY3) - Businesses and other organizations that applied for the Paycheck Protection Program back in the spring are starting the application process to get those loans forgiven.
Central Bank of the Ozarks handled more than 1,200 paycheck protection program loans back in the spring. Workers are now starting on the loan forgiveness process. They’re doing most of the work by email and over the phone, as its lobbies are only open by appointment. They say applications are picking up over the last few weeks as people think financially, nearing the end of the year.
For businesses that took out PPP loans, 60% of the funds were supposed to be used on payroll, while the rest could be used for things like rent and utilities. The government wanted to keep businesses open employees on paid. The government gave businesses up to 24 weeks to use those funds. Lenders at Central Bank say you have up to 10 months from the end of the covered period to apply for loan forgiveness. And they say there are a few different applications, the simplest for amounts of $50,000 or less. They ask you to check with your lender about which application you need to fill out. But you’ll also need some documentation along with that application. But lenders at Central Bank say, you have some time.
“I don’t want the borrowers to stress,” said Amy Unser, Central Bank of the Ozarks Vice President of Loan Administration. “The one thing we’ve learned during this entire program is patience has kind of been our friend, as the SBA and the Treasury are still trying to work out some of the kinks of this. It seems if we kind of be patient and wait for them to get it all worked out, it works in our favor.”
Unser says even if you had to let go employees, it’s still worth applying for loan forgiveness. You may not get 100% forgiveness, but you could get a percentage.
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