Paycheck Protection Program (PPP) Information Center

If you have not applied for forgiveness of your Round 1 PPP loan, please remember to log in to the portal and apply. The forgiveness application window is open for only 10 months after your coverage period and will end soon. If you received a PPP loan prior to August 8, 2020, you need to apply for forgiveness soon.

Additionally, Small Business Administration (SBA) Payoff letters will be available to you in the Borrower Portal immediately after we receive the payment from SBA. To access the SBA Payoff letter, log in to the forgiveness portal located to the right. Once inside the portal, click on your application, then the “Supporting Documentation” tab.

The Interim Final Rule released March 3, 2021 by the Small Business Administration allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income, removes the eligibility restriction that prevents businesses with owners who have non-financial fraud felony convictions in the last year from obtaining PPP loans, and removes the eligibility restriction that prevents businesses with owners who are delinquent or in default on their Federal student loans from obtaining PPP loans.
Borrowers should know:

• If they file an IRS 1040, Schedule C, and would like to use Line 7, Gross Income
  • They are required to complete SBA Form 2483-C for first draw loans and 2483SD-C for second draw loans.
  • If the amount reported on line 7 of Schedule C exceeds $150,000.00 and they submit SBA Form 2483-C or 2483SD-C, they waive their right to safe harbor provided by SBA for borrowers, together with their affiliates, who receive PPP Loans with an original principal amount of less than $2 million to demonstrate the need for the PPP loans.

EIDL Forgiveness Payments
We have started to receive EIDL Forgiveness Payments.  We will first apply payments to any round 1 PPP loan outstanding.  If your round 1 PPP loan is paid in full, we will attempt to deposit funds into the business checking associated with the loan.  If no active account exists, we will issue a check and mail it to the business address.
 
Targeted EIDL Advances for Round 2
Targeted EIDL Advance notifications are being sent out directly by SBA.  An eligibility mapping tool has been created.  Lenders need not do anything; Borrowers need not do anything.  The SBA will reach out directly, because they already know who is eligible.  Please ensure that you are responding to only official correspondence from a SBA.gov email address or SBA.gov link.
 
Two Week Exclusivity Period
Beginning at 9 am February 24, the Small Business Administration (SBA) limited processing of PPP originations to businesses with 19 and fewer employees.  This is called the exclusivity period, and will last two weeks. We will resume review and processing applications for businesses with 20 or more employees on March 10. 

Forgiveness

Changes have been made to the Paycheck Protection Program forgiveness application 3508S. Borrowers can apply for forgiveness of First or Second Draw Paycheck Protection Program (PPP) Loans with SBA Form 3508S if the loan amount you received was $150,000 or less for an individual First or Second Draw PPP Loan (previously $50,000). Each PPP loan must use a separate loan forgiveness application form.

The 3508S application can be found to the right in the Round 1 Forgiveness Portal. This form requires fewer calculations and reduced documentation for eligible borrowers and does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, the SBA may later request information and documentation to review those calculations as part of its loan review or audit processes, so please keep this information handy.

Our lenders have begun to submit applications to the Small Business Administration. Ongoing meetings and training continues as updates are provided for PPP2.

PPP loans are aimed primarily at keeping employees on the payroll, but funds can also be put toward other authorized expenses. The SBA has expanded the list of eligible expenses to include protective equipment, like plastic shields that stores install to protect employees. Please reference the links to the right for additional information on eligible expenses.

We expect that the PPP2 borrowing window will officially open on Tuesday, January 19. Please reference the anticipated documentation and the interim guidance links under the Round 2 PPP Resources to the right in preparation to apply.

• First Round PPP Borrowers - you will receive a link in your email to the new application on Friday, January 15. You can submit your application in the portal as soon as you receive the link. Paper applications will not be accepted. If you need help submitting the electronic application, please reach out to your lender or banker.  We will begin the application review process on Tuesday, January 19. Once your application is complete and approved by the bank, we will begin to submit to the SBA.

• Other PPP Borrowers - If you are a current customer or a prospective customer that did not participate in the first round of funding with us, please provide your contact information HERE or on the “PPP Inquiries” link under Round 2 Resources to the right. One of our PPP Experts will reach out to you shortly.

We have received the interim final guidance on PPP2 and are preparing to accept electronic applications when the SBA opens the borrowing window.

We expect applications to open later next week (the week of 1/11). Watch for a link “Anticipated Documentation” that contains a preliminary list of items that may be needed as part of the process. Please do not email this documentation to your lender. You will upload it electronically with your application. This may not be an exhaustive list, but rather a guide to help you prepare. For your reference, we have also posted a link to the SBA guidance in the Round 2 PPP section.

We will provide the link to the application portal by email once available. If you are a new PPP borrower (but current customer), please contact your commercial banker or local branch to ensure your contact information is updated.

The new Stimulus bill provides for a new round of PPP loan funding. While the SBA has not released details yet, we want to provide you with anticipated direction so you can begin to gather supporting documents. Under Round 2 Resources (to the right of this message), we will soon provide a link to the updated application when it is available as well as any other critical information links. In the meantime, we anticipate the following documentation will be needed:

1. The borrower must demonstrate that there was a 25% reduction from the gross receipts year over year from the same quarter in 2019.
2. For the purposes of this 25% rule, gross receipts will include all revenues from the normal operation of the business before subtraction of expenses but will not include amounts borrowed, including amounts received for PPP loans.
3. The borrower must employ no more than 300 employees, or meet an alternative size standard.
4. Additional documentation will be needed and communicated once SBA guidance is received.