Paycheck Protection Program Loan Forgiveness

Paycheck Protection Program Loan Forgiveness

To all of our customers with a PPP loan who are preparing for loan forgiveness, we recommend that you review the instructions provided below associated with both the EZ and long form version of the PPP Loan Forgiveness Application to determine which form will be appropriate for your business and begin assembling your documentation now.  

We are currently awaiting additional guidance from the SBA and Treasury Department prior to accepting loan forgiveness applications.  


The instructions include detailed information about the costs that are eligible for forgiveness, the list of documents required to be submitted with your application for forgiveness, and the instructions for calculating those costs.  

Wheatland Bank is utilizing a secure online application platform to process all forgiveness applications.  Please contact your loan officer if you are in need of a link to the platform.

Legislative Update:  Paycheck Protection Program Flexibility Act of 2020

On June 5, President Donald Trump signed legislation to address restrictions on the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

While further guidance and clarification from the SBA and Treasury is likely, here is a summary of the provisions that appear in the Paycheck Protection Program Flexibility Act.

Specifically, the law:

  • Extends the covered period during which the loan may be used for forgivable expenses from eight weeks following disbursement of the loan to 24 weeks from loan disbursement or Dec. 31, 2020, whichever is earlier. Borrowers who received loans before June 5 may elect to continue using the eight-week covered period.
  • Lowers the amount that must be spent on payroll costs from 75 percent to 60 percent.
  • Extends the period in which employers may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable amount of a PPP loan to Dec. 31, 2020. However, the forgivable amount will be determined without regard to a reduction in the number of employees (compared to Feb. 15, 2020) if the recipient is (1) unable to rehire former employees and is unable to hire similarly qualified employees by Dec. 31, or (2) unable by Dec. 31 to return to the same level of business activity that existed before Feb. 15, 2020, due to compliance with federal requirements or guidance related to COVID-19.
  • Replaces the six-month deferral of payments due under PPP loans with deferral until the date SBA pays the lender the amount of loan forgiveness. If a borrower fails to apply for loan forgiveness within 10 months after the last day of the covered period for forgiveness, the borrower must begin to make payments of principal, interest, and fees on its PPP loan.
  • Establishes a minimum maturity of five years for new PPP loans as opposed to the current two-year maturity date. The five-year maturity takes effect on the date of enactment and will apply to any PPP loan made on or after June 5. Lenders and borrowers, however, may mutually agree to modify the maturity terms of prior-disbursed PPP loans.
  • Eliminates a provision that makes PPP loan recipients who have PPP debt forgiven ineligible to defer payroll tax payments.

This law will likely be subject to additional guidance by SBA and Treasury. Small-business borrowers should have a firm understanding of the provisions above and any related guidance to ensure they meet the criteria for loan forgiveness.

Please note:  Wheatland Bank will accept PPP loan applications through August 5, 2020.

What is the SBA Paycheck Protection Program (PPP)?


The SBA Paycheck Protection Program is a program through the U.S. Small Business Administration (SBA) passed into legislation on March 27, 2020 as part of the $2.3 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses that have been impacted by COVID-19. 


  • Loan amounts up to 2.5x average monthly payroll, not to exceed $10 million
  • Payments may be deferred for up to six months
  • Loan forgiveness for eligible payroll, mortgage interest, rent and utilities during the covered eight-week period after origination.  However, not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs. 
  • No loan origination fees
  • No business collateral or personal guarantee required
  • No prepayment penalties
  • To qualify, must have fewer than 500 employees


Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.  To help you better understand the program, below are links to the resources that have currently been made available.

Treasury Department Resources


Senate Small Business & Entrepreneurship Committee Resources

As an SBA Preferred Lender, Wheatland Bank has a team of experienced SBA lenders and we stand ready to lend support to the local businesses in the communities we serve to help get them through the economic downturn caused by the COVID-19 Pandemic.

Q:  How do I contact someone to assist me with questions I have? 

If you have an existing loan officer or other contact at your local Wheatland Branch, please contact them.  If not, please complete the short form below and a local human banker, who lives in your community, will contact you to assist you.

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