Borrowers may owe money when the loan is due if full-time equivalent staffing declines, or if salaries and wages decrease by more than 25% for any employee that made less than $100,000 annualized in 2019. We provided nearly 1,800 loans totaling $260 million through the SBA Paycheck Protection Program. US Bank will accept submissions from non-U.S. Bank customers. Please note that Simmons Bank is continually working to update our resources as new information becomes available. Choice Bank has disabled the forgiveness application option in the Customer Portal for all of our borrowers starting 3/1/21 as our vendor works on implementing the changes. Exchange Bank is committed to supporting our business customers. SBA has revised prior guidance and confirmed that eligible nonpayroll costs cannot exceed 40 percent of the loan forgiveness amount. Below is a summary of the current status of the PPP Loan applications for some of the largest financial institutions authorized by the SBA to issue 7(a) Loans. PPP.BANK is committed to zero data collection. The borrower will be responsible for paying back any amounts not forgiven. Our Community Bank team has created an online portal that will walk you through the PPP Loan Forgiveness process step-by-step. We understand how important the PPP Loan Forgiveness is to you and your business, and we want you to know that we’re here for you. Call us at 1.800.445.5725 or Email … If payroll costs are incurred during this alternative payroll covered period, such payroll costs will be eligible for forgiveness if they are paid no later than the first regular payroll date thereafter. To ensure that borrowers are not doubly penalized, SBA has clarified that the salary/wage reduction applies only to the portion of the decline in employee salary and wages that is not attributable to the FTE reduction. If you're a Bank of the West PPP customer, our online application will guide you to which SBA PPP loan forgiveness application form you are required to complete. Wells Fargo is no longer taking PPP Loan applications. Borrowers may seek forgiveness for payroll costs for the applicable covered period beginning on either: (1) the date of disbursement of the borrower’s PPP loan proceeds from the lender (i.e., the start of the covered period); or (2) the first day of the first payroll cycle in the covered period (the “alternative payroll covered period”). Each borrower is required to retain PPP documentation in its files for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request. If the average number of FTE employees during the covered period or the alternative payroll covered period is less than during the reference period, the total eligible expenses available for forgiveness is reduced proportionally by the percentage reduction in FTE employees. Documentation checklist. Payroll costs that were both paid and incurred during the covered period (or alternative payroll covered period) may only be counted once. Because the hourly wage did not change, the reduction in the employee’s total wages is entirely attributable to the FTE employee reduction and the borrower is not required to conduct a salary/wage reduction calculation for that employee. Home » PPP Loan FAQs and Resources. Bank of America is currently taking applications from existing Bank of America Business customers. This round of funding closes on March 31, 2021. SBA has provided that, in general, a reduction in FTE employees during the covered period or the alternative payroll covered period reduces the loan forgiveness amount by the same percentage as the percentage reduction in FTE employees. SBA has indicated that borrowers should not be penalized for changes in employee headcount that are the result of employee actions and requests. 5/29/2020. SBA has provided that, within 30 days of notice from the lender, a borrower may request that SBA review the lender’s decision by reviewing the loan in accordance with the guidance provided. This checklist will help you gather all required documents around payroll and employee documentation. Borrowers must have a Business Online Banking account. We are currently only accepting PPP loan forgiveness applications for 2020 loans via the portal, included below. SBA has indicated that the CARES Act defines the term “payroll costs” broadly to include compensation in the form of salary, wages, commissions, or similar compensation. Apply here. Selecting the proper form. Copyright © var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); JD Supra, LLC. SBA will, subject to any SBA review, remit the appropriate forgiveness amount to the lender, plus any interest accrued through the date of payment, not later than 90 days after the lender issues its decision to SBA. The Banks listed below are some of SBA’s most active SBA Section 7(a) Loan lenders. PPP Loans | Forgiveness . If you do not apply for loan forgiveness, this will be 10 months after the end of the borrower’s loan forgiveness period. PPP Loan Forgiveness Application Frequently Asked Questions. Privacy Policy; About; Contact Us; Mission Statement; Site Map Confirm receipt of the borrower certifications contained in the SBA Form 3508 or lender’s equivalent form. We will notify borrowers via email when you can begin applying for forgiveness later this month. PPP Loan FAQs and Resources. At Live Oak Bank, we encourage our PPP loan customers to work with your CPA or third-party payroll processing provider to ensure a full understanding of the rules, the accuracy of your forgiveness application and to collect the correct documentation. PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to … The lender must issue a decision to SBA on a loan forgiveness application not later than 60 days after receipt of a complete Loan Forgiveness Application from the borrower. Forgiveness Tool PAYCHECK PROTECTION PROGRAM (“PPP”) LOAN FORGIVENESS CENTRAL BUSINESS RULES Eligible borrowers* may qualify for up to 100% of the PPP loan. Applicants should fill out an inquiry form here. Starting July 6, 2020, CNB will begin accepting applications for Forgiveness under the CARES Act Paycheck Protection Program (PPP). Greene County, which made more than 1,260 PPP loans for $100 million, believes many of those deals are ready for forgiveness right away. If the lender determines that the borrower is entitled to forgiveness of some or all of the amount applied for, the lender must request payment from SBA at the time the lender issues its decision to SBA. In addition, Section 3(b)(2) of the Flexibility Act also adds exemptions from reductions in loan forgiveness amounts based on employee availability and business activity. SBA will, subject to any SBA review of the loan or loan application, remit the appropriate forgiveness amount to the lender, plus any interest accrued through the date of payment, not later than 90 days after the lender issues its decision to SBA. We are working to incorporate these changes, as well as the latest guidance from the SBA, and will make the updated application and related information available soon on this site. Each lender has 60 days from receipt of a complete application to issue a decision to SBA. All rights reserved. Please use this Forgiveness Expense Excel Worksheet to help with the PPP forgiveness validation process. Confirm the borrower’s calculations on the borrower’s the SBA Form 3508EZ or lender’s equivalent form, including the dollar amount of the Payroll Costs, Business Mortgage Interest Payments, Business Rent or Lease Payments, and Business Utility Payments claimed on Lines 1, 2, 3, and 4 of the SBA Form 3508EZ or lender’s equivalent form, by reviewing the documentation submitted with the SBA Form 3508EZ or lender’s equivalent form. You (the Borrower) can apply for forgiveness of your First or Second Draw Paycheck Protection Program (PPP) Loan using this SBA Form 3508EZ if your PPP loan amount is more than $150,000 and you can check at least one of the two boxes below. However, in the meantime, we recommend that you review the Loan Forgiveness Application, instructions and guidance, all of which can be found. We will first apply payments to any round 1 PPP loan outstanding. C-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer retirement and health insurance contributions made on their behalf. If your round 1 PPP loan is paid in full, we will attempt to deposit funds into the business checking associated with the loan. SBA has indicated that further information regarding how borrowers will report information concerning rejected rehire offers to state unemployment insurance offices will be provided on SBA’s website. Fulton Bank will send a "loan forgiveness application" invitation email to PPP borrowers to initiate the forgiveness process. © Wendel Rosen LLP var today = new Date(); var yyyy = today.getFullYear();document.write(yyyy + " "); | Attorney Advertising. If SBA accepts a borrower’s request for review, SBA will notify the borrower and the lender of the results of the review. The Small Business Administration (SBA) released an interim final rule on the evening of April 2, 2020, outlining key provisions of the SBA’s Paycheck Protection Program (PPP) and the provisions of the CARES Act relating to loan forgiveness. Further, a regulatory exemption to the reduction rules is available for borrowers that have offered to restore employee hours at the same salary or wages, even if the employees have not accepted. For most first-draw loans, including all PPP loans made in 2020, you will not need to provide any documents to Citizens for us to submit the application to the SBA for approval; however, you must retain documentation to substantiate forgiveness. The SBA will only accept applications for First Draw and Second Draw PPP loans from businesses with fewer than 20 employees between February 24 and March 10, 2021. SBA has indicated that SBA Form 3508EZ (or the equivalent form provided by the lender) can be used if the borrower can make one of the representations below: The Covered Period is defined in the Loan Forgiveness Application as either: (1) the 24-week (168-day) period beginning on the date that the borrower received the PPP loan proceeds from the lender, or (2) if the borrower received its PPP loan before June 5, 2020, an eight-week (56-day) Covered Period if elected by the borrower. Apply Now. Borrowers should have available the outstanding balance of any existing Economic Injury Disaster Loans (EIDL). We’ve assembled a list of Frequently Asked Questions about the PPP forgiveness process and answered them using the latest guidelines from the Small Business Administration. If you received your PPP loan through us, your forgiveness application must also be processed through us. If you are an existing customer and wish to apply for a PPP loan, please contact us at sbaloans@northeastbank.com. This information is provided by the U.S. Treasury. Application Tips for Borrowers. No. If SBA determines that a borrower is ineligible for the PPP loan, the loan amount or the loan forgiveness amount claimed by the borrower, SBA will direct the lender to deny the Loan Forgiveness Application in whole or in part, as appropriate. The hours of employees who work less than 40 hours are calculated as proportions of a single full-time equivalent employee and aggregated, as explained further below. Loan forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. To apply for a Second Draw PPP Loan with North … Confirm that the borrower made the calculation on Line 10 of the SBA Form 3508 or lender’s equivalent form correctly, by dividing the borrower’s Eligible Payroll Costs claimed on Line 1 by 0.60. Confirm the borrower’s calculations on the borrower’s the SBA Form 3508 or lender’s equivalent form, including the dollar amount of the (A) Cash Compensation, Non-Cash Compensation, and Compensation to Owners claimed on Lines 1, 4, 6, 7, 8, and 9 on PPP Schedule A and (B) Business Mortgage Interest Payments, Business Rent or Lease Payments, and Business Utility Payments claimed on Lines 2, 3, and 4 on the PPP Loan Forgiveness Calculation Form, by reviewing the documentation submitted with the SBA Form 3508 or lender’s equivalent form. Do not proactively deliver or send documents to Bank of America Financial Centers or banking teams. During the covered period, the local government where the borrower’s store is located orders all non-essential businesses, including the borrower’s business, to shut down their stores, based in part on COVID-19 guidance issued by the CDC in March 2020. We will link the necessary documents, as well as updated information communicated by the SBA as it relates to the PPP Loan Forgiveness Process. Review application and supporting documents for completeness. Payroll information detailing monthly costs for employees over the last 12 months, unless a borrower is a seasonal employer. Click here to read more about how we use cookies. SBA has confirmed that if loan documentation submitted to SBA by the lender or any other information indicates that the borrower may be ineligible for a PPP loan or may be ineligible to receive the loan amount or loan forgiveness amount claimed by the borrower, SBA will require the lender to contact the borrower in writing to request additional information. SBA has indicated that the borrower must first select a reference period: (i) February 15, 2019 through June 30, 2019; (ii) January 1, 2020 through February 29, 2020; or (iii) in the case of a seasonal employer, either of the two preceding methods or a consecutive 12-week period between May 1, 2019 and September 15, 2019. SBA stated that it will consider all information provided by the borrower in response to such an inquiry, but failure to respond to SBA’s inquiry may result in a determination that the borrower was ineligible for a PPP loan or ineligible to receive the loan amount or loan forgiveness amount claimed by the borrower. If SBA determines that the full amount of the loan is eligible for forgiveness and remits the full amount of the loan to the lender, the lender must then mark the PPP loan note as “paid in full” and report the status of the loan as “paid in full.” The general loan forgiveness process described above applies only to loan forgiveness applications that are not reviewed by SBA prior to the lender’s decision on the forgiveness application. If a lender determines that a borrower is not entitled to forgiveness in any amount, the lender must provide SBA with the reason for its denial and must also notify the borrower in writing that the lender has issued a decision to SBA denying the loan forgiveness application. The Paycheck Protection Program is intended to provide economic relief to small businesses adversely impacted by the COVID-19 pandemic. No. Visit My Univest Blog. You will complete PPP Loan Forgiveness Application Form 3508S. The Paycheck Protection Program (PPP) and its requirements continue to change very rapidly, and finance leaders are advised to stay abreast of the situation. As an example, SBA has indicated that if a borrower had 10.0 FTE employees during the reference period and this declined to 8.0 FTE employees during the covered period, the percentage of FTE employees declined by 20 percent and thus only 80 percent of otherwise eligible expenses are available for forgiveness. Bank First created this step-by-step guide to help you through the PPP Loan Forgiveness Application. Specifically, borrowers that can certify that they have documented in good faith that their reduction in business activity during the covered period stems directly or indirectly from compliance with such COVID Requirements or Guidance are exempt from any reduction in their forgiveness amount stemming from a reduction in FTE employees during the covered period. If you have questions about your PPP Loan Forgiveness Application, call (888) 655-2210 (Toll-Free). Appying For PPP Loan Forgiveness. SBA may also seek repayment of the outstanding PPP loan balance or pursue other available remedies. Businesses with PPP loans $150,000 or less . PPP Loan Forgiveness. Yes. Note that you must apply for loan forgiveness with the same financial institution that originated your PPP loan. Please note, this invitation to apply was sent to the email associated with your PPP loan. Effective March 5 th, First Home Bank has partnered with ACAP/The Loan Source for all new applicants who have not previously received a login and password to First Home Bank’s PPP Portal. This partnership will make your PPP 2.0 application process easier and allow us to help more small business owners. Smoothing the forgiveness process is critical for the program to succeed, ... “Probably every PPP borrower expects their loan to be forgiven, ... head of the commercial bank at TD Bank in New York. Wallis Bank – Due to extremely high demand for PPP Loans, Wallis Bank is only accepting applications from Texas, Southern California and the Atlanta Metro area at this time. Byline Bank PPP loan customers may access our application link to begin the forgiveness process, when the time is right for their business. If you have not filed for Forgiveness for an existing PPP loan through North State Bank and your covered period has passed (8 to 24 weeks from the Loan Disbursement Date), log in to begin that process. This website automates the 11-page forgiveness application and results in a .pdf that can be provided to the lender. Payroll Protection Program Forgiveness. If SBA determines in the course of its review that the borrower was ineligible for the PPP loan based on the provisions of the CARES Act, SBA rules or guidance available at the time of the borrower’s loan application, or the terms of the borrower’s PPP loan application (for example, because the borrower lacked an adequate basis for the certifications that it made in its PPP loan application), the loan will not be eligible for loan forgiveness. After submitting a PPP Loan application with Bank of America, the Bank will contact you with next steps and to collect any required documents. SBA has indicated that a nonpayroll cost is eligible for forgiveness if it was: (1) paid during the covered period; or (2) incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period. The Forgiveness application requires Borrowers to submit to the Lender (Wallis Bank). For example, an employee who was paid 48 hours per week during the covered period would be considered to be an FTE employee of 1.0. Additionally, as noted above, if the borrower takes an EIDL emergency grant and is seeking PPP loan forgiveness, the amount of the emergency grant will be deducted from any PPP loan forgiveness … SBA has indicated that borrowers seeking forgiveness must document their average number of FTE employees during the covered period (or the alternative payroll covered period) and their selected reference period. North State Bank has updated the PPP Forgiveness Application to expedite the submission of loan forgiveness under the 3508S Application. Poppy Bank is Rated 5-Stars We Are Rated 5-Stars by BauerFinancial* Poppy Bank is recognized as one of the strongest financial institutions in the country. Updates will be posted here. Confirm receipt of the borrower certifications contained in the SBA Form 3508EZ or lender’s equivalent form. – Security – Strength – Reliability *BauerFinancial, Inc. is the nation’s leading independent bank and credit union rating firm. Existing PPP Forgiveness Applicants. a Small Business checking account opened no later than February 15, 2020 and no business credit or borrowing relationship with another bank. For purposes of loan forgiveness, the covered period is the 24-week period beginning on the date the lender disburses the PPP loan (ending no later than December 31, 2020). If this occurs, the lender must notify the borrower of the date the first payment is due. The following is intended to be a general overview of certain guidance provided by SBA regarding PPP loan forgiveness. If you are a Univest PPP customer, you can expect to receive an email with details of how and when you may initiate a loan forgiveness request, once available. As long as the borrower submits their loan forgiveness application within ten months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the SBA. Yes. Larger businesses can still submit an application during that time. For all other borrowers, the amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at 2.5 months’ worth (2.5/12) of 2019 compensation (i.e., approximately 20.83 percent of 2019 compensation) or $20,833 per individual, whichever is less, in total across all businesses. Schedule C or F filers are capped by the amount of their owner compensation replacement, calculated based on 2019 net profit. Prior PPP Borrowers with a PPP Loan from Another Financial Institution: Due to high demand, we are only able to process applications from businesses located in Alabama, Florida, Georgia, North Carolina or South Carolina. Others are not ready to accept applications. This program provides small businesses with loans that can be forgiven in whole, or in part. The lender must provide any additional information provided to it by the borrower to SBA. the borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, borrowers are instructed that “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000); AND the borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. If a borrower pays furloughed employees their salary, wages, or commissions during the covered period, those payments are eligible for forgiveness as long as they do not exceed an annual salary of $100,000, as prorated for the covered period. The SBA has released revised guidance on PPP Loan Forgiveness for Borrowers. Payroll costs paid during this alternative payroll covered period are eligible for forgiveness. In principle, the forgiveness terms are straightforward: borrowers must spend 75% of the loan on payroll costs, such as salaries, tips, leave, severance pay and health insurance, within the first two months. The HEALS Act forgiveness provisions are intended to save banks approximately $500 per PPP loan to process forgiveness requests, and as much as $2,000 in compliance costs for small businesses. City National Bank is here to assist you with all of your Paycheck Protection Program (PPP) needs. If you are an existing client and do not currently have an online account, you must enroll in Business Online Banking as soon as possible. The borrower seeking forgiveness would list $400 as the salary/hourly wage reduction for that employee (the extra $50 weekly reduction multiplied by eight weeks). US Bank will not accept the U.S. Treasury’s application form. If the SBA denies forgiveness in whole or in part, the lender will notify the borrower of the date on which the borrower’s first payment is due. First and Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Confirm receipt of the documentation borrower must submit to aid in verifying payroll and nonpayroll costs, as specified in the instructions to the SBA Form 3508EZ or lender’s equivalent form. The borrower cannot apply if the business already received a PPP Loan from Chase or applied for a PPP Loan from another financial institution. SBA has indicated that advance payments of interest on a covered mortgage obligation are not eligible for loan forgiveness because the CARES Act’s loan forgiveness provisions regarding mortgage obligations specifically exclude “prepayments.” SBA has provided that principal on mortgage obligations is not eligible for forgiveness under any circumstances.
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