Newtek Business Services Corp.
Dear PPP Recipient,

The SBA has provided Newtek and other PPP Lenders certain guidance on the loan forgiveness process.  You should note that Newtek, along with others in the PPP lending community, anticipate further changes to existing SBA guidance on the forgiveness process.  Our commitment to you is to provide clear and substantive direction as it becomes available.  Please feel free to contact us at hello@newtekone.com if you have any questions.

At the present time, if you have not yet applied for loan forgiveness, the deferral period for your PPP loan has been extended to 10 months after the end of your loan forgiveness covered period.*  As a result, based on current SBA guidance, if you have not applied for forgiveness already, you are not required to make any payments on the loan until 10 months after either:
  • the end of the 24-week period following loan disbursement, or
  • at your election, the end of the eight-week period following loan disbursement, if you received your PPP loan before June 5, 2020. 
At the end of your deferment period, payments of principal and interest on the loan shall commence as indicated in your Note.  You may submit a loan forgiveness application any time before the maturity date of the loan.  It is important to note that if you apply for PPP loan forgiveness during your deferment period and the SBA determines a balance will remain on your loan, your loan payment of principal and interest will commence immediately after the SBA determines the balance remaining and you will forfeit any remaining deferment period. If you choose to apply for loan forgiveness today, we ask you to refer to your loan portal for further instructions at www.NewtekReferrals.com


Sincerely,
Newtek Small Business Finance

*Originally, and as outlined in your PPP loan note, payments on your PPP loan were to be deferred for a period of six months from the date on which you received your PPP loan disbursement.  This 6-month deferral period was extended by the Paycheck Protection Program Flexibility Act, enacted on June 5, 2020.