Paycheck Protection Program Forgiveness
Paycheck Protection Program (PPP) Loans
We have included updates on each below to help keep you updated on the new information. Please check back often for updates!
Update on the Paycheck Protection Program (5/5/2021)
The Paycheck Protection Program is officially exhausted of funds as of May 4, 2021. We can no longer accept any applications. If you have any questions, please reach out to your relationship banker or our Contact Center at (800) 836-3711.
Update on the Paycheck Protection Program (1/19/2021)
We will again be participating in this round of PPP loans, and we are here to help our customers apply for first-time or second-time funding. Based on our initial review of the information provided the SBA, it appears that businesses that had not applied for, or received, funding in earlier rounds will have priority over firms seeking a second PPP loan.
While the program officially re-opened on Monday, January 11, our understanding is that we will be able to start accepting applications on Tuesday, January 19, per the SBA.
Key Updates:
- PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
- PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
- The Program’s eligibility is expanded to include 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations;
- The PPP provides greater flexibility for seasonal employees;
- Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
General Eligibility for a Second-Draw PPP Loan:
- Previously received a First-Draw PPP Loan and will, or has used, the full amount only for authorized uses;
- Has no more than 300 employees;
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
For second-time borrowers, the maximum loan amount will be $2 million and the business must have 300 or fewer employees and be able to demonstrate a revenue reduction of 25 percent or greater from 2019 to 2020.
Application Links
The following links are informational.
Please follow the links below for PPP Resources; they are frequently updated with FAQs and other guidance:
https://www.sba.gov/paycheckprotection
https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
Update on PPP Forgiveness (12/28/20)
We are continuing the process of sending out personalized links to our customers for the PPP Forgiveness application. Borrowers have 10 months after their 24-week coverage period to submit the forgiveness request. Additionally, the new Act will be implementing a simplified forgiveness application for loans under $150,000, including a one-page certification process.
We are happy that the Paycheck Protection Program will be available once again to support businesses in our communities. As we receive more information on PPP and its Forgiveness option, we will update you. If you have any questions, please contact your local branch or visit our PPP Forgiveness Page.
Paycheck Protection Program Details
- Loan amount: Up to 250% of your business’s average monthly payroll costs (calculated as an average of payroll over the last twelve months), with a maximum of $10 million
- Fees: None
- Term: Up to two years; full deferment of principal and interest for six months
- Rate: 1%
- Loan forgiveness: All or a portion of the loan may be forgiven if the business complies with rules regarding usage of the funds. We will guide you through the process to ensure you are eligible for the maximum amount of forgiveness. Click here for more information.
- Collateral: No collateral or personal guarantee requirements
How May I Use the Loan?
- Salaries, wages, payroll, benefits, etc.
- Rent & utilities
- Interest on mortgages and other loans
- Refinance of an SBA Economic Injury Disaster Loan (EIDL) made after January 1, 2020
How do I Qualify as a First-Time Borrower?
- You must have less than 500 employees
- You must have been operational on February 15, 2020
- You must have employees who are paid salaries and payroll taxes
- For-profit and non-profit small businesses are eligible
- Sole proprietorships and other self-employed individuals are eligible
What Documentation do I Need?
Click here to view our Documentation Checklist
How do I Apply for Forgiveness?
Click here to view our PPP Forgiveness Information Page
Have Questions? As always, if you have any questions or concerns, or would like to setup an appointment with us, we are here for you. Please reach out to our Contact Center at (800) 836-3711 for assistance.