When and how do I apply?
As of Oct. 14, M&T’s loan forgiveness application portal is open. Instructions have been sent via email with a link to the loan forgiveness application. If you haven’t received this email, or have any questions, please call your Relationship Manager, local branch, or the Telephone Contact Center at 1-800-724-6070.
How long do I have to allocate the funds received from the loan disbursement?
The PPP Flexibility Act lengthens the forgiveness "covered period" from an 8-week period (56 days) to a 24-week period (168 days), but not later than December 31, 2020. Borrowers with loans prior to June 5 maintain the option to use the original 8-week period.
Which Covered Period is right for me, 8 or 24 weeks?
A borrower should choose a covered period that will allow all eligible payroll and non-payroll expenses to be paid out prior to applying for loan forgiveness. The covered period begins on the day the PPP funds were deposited into your account and run through 8 weeks or 24 weeks. The covered period chosen needs to align with payroll and non-payroll expense disbursement, payment and documentation.
Example: PPP funds were exhausted during Week 9. The chosen covered period for the PPP loan forgiveness application would be the 24-week covered period.
What is the Alternative Payroll Covered Period, and do I need it?
For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the 8-week (56-day) or 24-week (168 days) period that begins on the first day of their first pay period following their PPP Loan Disbursement Date (the "Alternative Payroll Covered Period").
Example, if the Borrower received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, June 20.
What happens to the portion of my PPP loan that isn't forgiven?
For any amount not forgiven, the original terms in the promissory note will apply (1% APR for 24-month term). A payment recalculation of the unforgiven portion will be conducted for balanced principal and interest payments (P&I) over the remaining term of the loan. The PPP Flexibility Act extends the PPP loan payment deferral period from 6 months, to the date on which your eligible forgiveness amount is remitted to the lender. For borrowers who do not apply for forgiveness within 10 months after the end of the covered period, the deferral period will end at that time as well.