PPP Loan Forgiveness Update

As you may be aware, the Small Business Administration (SBA) has indicated that Monday, August 10 is the first day financial institutions can begin accepting applications for loan forgiveness in the SBA Paycheck Protection Program.

We understand you may be ready to begin this process. However, we wanted you to be aware that First Horizon is not yet ready to begin accepting applications for forgiveness under the program. We are awaiting further clarification from the SBA on several key issues that will allow us to better serve you.

As we await this guidance, we are working hard to finalize our forgiveness application process, so we may provide you with the high level of service you expect from us. We appreciate your patience, and we will notify you as soon as we are able to begin processing applications.

In the meantime, as you prepare for the forgiveness process, visit firsthorizon.com/forgive and the SBA website to find specific details about eligibility for forgiveness and documentation requirements.

To help you prepare, we have included answers to two frequently asked questions.

Has the SBA made any changes to PPP rules that I need to keep in mind?

  • Borrowers now have a 24-week covered period in which PPP loan proceeds may be spent for full loan forgiveness. Any covered period starts on the date the funds were disbursed. Those who received an approval prior to June 5, 2020, may opt-in to the original 8-week covered period or use the new 24-week period.
  • At least 60% of funds must be used for eligible payroll costs to qualify for full loan forgiveness, down from 75%.
  • Up to 40% of funds may be used for eligible non-payroll costs, up from 25%.

Please visit the SBA website for the most up-to-date information.

How long do I have to apply for loan forgiveness?

  • The loan forgiveness timeframe originally stated in your loan documents is no longer valid. Based on the latest guidance from the SBA, a loan forgiveness application may be submitted any time on or before the date the loan is expected to be paid in full.
  • Should there be any changes to your loan forgiveness application window, First Horizon will notify you by email.
  • Please note that if you do not apply for forgiveness within 10 months of the end of your “covered period,” you will be required to begin making payments under your loan. Those payments will be refunded if your loan is later forgiven.

First Horizon is proud to be here for you, and we thank you for this opportunity to serve you.

Be aware:
The Small Business Administration and the Department of Treasury continue to provide additional guidance concerning the Paycheck Protection Program. Thus, First Horizon makes no representation that information contained herein is up-to-date or complete. Before submitting a request for loan forgiveness, borrowers may wish to visit the SBA, U.S. Treasury Assistance for Small Business, and U.S. Treasury FAQs websites for the latest information and guidance related to the Paycheck Protection Program.

* As of 8/9/20.

Existing customer?
Existing customer?
The Paycheck Protection Program: Working for you

How we’ve supported customers with the Paycheck Protection Program (PPP)

Approved more than 14,500 loans

for small businesses totaling $1.9B.

20% of the PPP loans

went to women- and minority-owned businesses as well as businesses in low- to moderate-income tracts.

Helped sustain over 313,000 jobs

across our communities.