Dear Paycheck Protection Program Borrower:
We wanted to update you on recent changes related to your loan under the Paycheck Protection Program (“PPP”).
When you signed your Promissory Note, your initial payments were to commence six months after the date that your PPP loan was funded. The SBA has revised the PPP guidelines resulting in a deferral of principal and interest payments, until such time that the SBA renders its decision on a borrower’s PPP forgiveness application. You have 10 months from the end of either the 8 week or 24 week “covered” payroll period you selected to apply for forgiveness of your PPP loan.
In the near future, we will be forwarding to you a more comprehensive update, which will include an explanation of the SBA’s most recent process for seeking forgiveness of some or all of your loan under the PPP, including the timing as to when your PPP forgiveness application will be due.
In the meantime, the extension of the deferral period happens automatically, you are not required to modify your PPP Promissory Note. So please accept this letter as formal notice that Metairie Bank has taken the necessary steps to modify your PPP deferral period and no action is required on your part.
If you have any questions, please feel free to contact your loan officer.
Ron E Samford, Jr.