PPP Update

As we promised last week, I am writing to convey to you the Customers Bank plan for the acceptance and processing of PPP Loan forgiveness applications.

We told you that we would like to spare borrowers onerous, time-consuming, and potentially costly paperwork if Congress might ultimately pass a law granting forgiveness to all borrowers under a threshold loan amount. We do not think we would be doing you any favors if Congress makes that effort and expense meaningless.

But Congress has yet to act and certainly will not give blanket forgiveness to all borrowers. So, here is our plan to serve you in what we think is the most expeditious and cost-effective manner:

  • Beginning Tuesday, September 1, 2020, Customers Bank will accept PPP Loan forgiveness applications from borrowers of $2 million or more. Applications from borrowers of smaller loans will not be accepted at this time. Borrowers who fit this description will receive detailed instructions about how to apply.

  • Beginning Tuesday, September 15, 2020, Customers Bank will accept PPP Loan forgiveness applications from borrowers of $1 million or more. Applications from borrowers of smaller loans will not be accepted at this time. The borrowers not previously notified will now receive detailed instructions about how to apply.

  • Beginning Tuesday, October 13, 2020, Customers Bank will accept PPP Loan forgiveness applications from borrowers of $250,000 or more. Applications from borrowers of smaller loans will not be accepted at this time. The borrowers not previously notified will now receive detailed instructions about how to apply. This date may be adjusted earlier or later based on application flow.

  • If Congress has not acted to grant statutory forgiveness to borrowers of small loan amounts, we will begin to accept applications from all borrowers on October 27. The borrowers not previously notified will now receive detailed instructions about how to apply. This date may be adjusted earlier or later based on application flow.

We hope that borrowers with smaller loan amounts understand this process is meant to try to help, not hurt. It is our sincere wish to spare you the burden of the paperwork and record submission. There is absolutely no penalty or cost resulting from a delayed forgiveness filing. The SBA has given you 10 months following the end of your covered period to apply for forgiveness.

If you have special circumstances, such as the sale of the company or a change in the company ownership, that require the loan issues to be resolved quickly call me and we will work together to process your forgiveness application.

When you receive your specific forgiveness applications instructions, you will be told how to access a secure Customers Bank online portal through which you will access a digital workbook with an integrated loan forgiveness application form, and be able to upload required supporting documentation. The workbook will give you step-by-step instructions for data entry and will make calculations for you.

The PPP Loan forgiveness applications available from the SBA do not help you with calculations or data entry. Use of those forms will require you undertake a good deal of accounting work and might, depending on the size and complexity of your firm, require you to seek professional accounting and legal services. We strongly encourage you to wait for our workbook and portal before initiating a forgiveness application. Those applications that use the Bank’s materials and portal will allow us to process them in a more expeditious manner.

Please watch for very specific email instructions from us regarding portal access about a week before the date on which we will accept your application (from the categories and dates listed above). We will also continue to update the FAQs and other materials available on our website at PPP Forgiveness webpage.