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Message from Bank President and CEO

October 26, 2020

Message from Bank President and CEO

On behalf of everyone at Greater State Bank, I want to start off by saying “Thank you” for allowing us to be a part of your  financial solution during this very trying time. I want to take a minute to notify and update you on your Paycheck Protection  Program (PPP) loan and the process for applying for forgiveness of those loans which I know is of utmost importance for  everyone. 

MODIFICATION OF TERMS 

As you may already be aware, recently the Small Business Administration (SBA) issued updated guidance pertaining to the  Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) which specifically addressed the deferral period for  payments of principal, interest, and fees on PPP loans. 

As of October 7, 2020, clarification has been provided by the SBA which states that the Flexibility Act provides an  extension of the deferral period from 6 months to 16 months on all active PPP loans. It further provides that when an  application for forgiveness is submitted, it will be deferred until the SBA remits the borrower’s loan forgiveness amount to the Bank.  

The Flexibility Act provides that lenders are required to give immediate effect to the statutory extension and should  notify borrowers of the change to the deferral period. We will not require a formal modification to the Promissory Note you entered into, however, we will document that the Bank provided this notice to you.  

FORGIVENESS FRONT 

Although at this point there is no clear and precise guidance for a simplified format for the application for forgiveness, the  SBA has made attempts to simplify the process. At this point, the SBA has released 3 different application options and we  are knowledgeable on all of them. 

The Bank continues to monitor and encourage the SBA to issue an even more simplified, single page, forgiveness  application for all loans under $150,000. Since there has yet to be a simplified application released, we are hesitant to push  our borrowers with loans under $150,000 to submit forgiveness applications at this time. First and foremost, this hesitancy is  out of concern for our borrowers as a result of a lack of information from the SBA on denied forgiveness applications and  any other issues that may arise at this early stage of the process. We are working hard to provide you the information you  need to ensure that you have all of the information needed to meet the criteria for PPP loan forgiveness. 

Greater State Bank is accepting forgiveness applications and will not prevent anyone from submitting an application for  forgiveness once it has met all of the necessary qualifications. Our lenders are well versed in the current applications and  requirements to submit an application for forgiveness. I know this is a lot of information combined with a somewhat  evolving process, so please do not hesitate to contact your lender if you have any questions at all about this process and your  PPP loan. 

Again, on behalf of all of us at Greater State Bank, I thank you for trusting us with your banking business and for allowing  us the privilege of providing financial solutions to you and your business during this most unique time. We will continue to  track the changes to this ever-changing program with the goal of providing you the information that is most advantageous to  you and your business and remain available to answer any questions you may have moving forward. 

Sincerely, 

Robert A. McGurk 

President & CEO

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