
PPP Applications Now Closed
The SBA Announced on May 4 that PPP funds have been exhausted and the program is now closed to new applications. If you have any questions, please contact the lending officer or branch team member with whom you have been working.
We are accepting applications for forgiveness on your Paycheck Protection Program (“PPP”) loan.
To obtain a link to begin your forgiveness application, please contact your local branch or relationship manager. Below are details on the forgiveness process and the forms available in our portal.
3508S - If your loan was $150,000 or less, the application will default to the Form 3508S. With the 3508S you are not required to upload supporting documentation EXCEPT you must upload your Revenue Reduction Supporting Documentation if you are requesting forgiveness on a Second Draw Loan. See below for guidelines for Revenue Reduction Documentation.
3508EZ – To access this form you must determine your eligibility. You must check one of the eligibility boxes to make this form available for selection. Review the eligibility criteria and if you are eligible check the appropriate box to unlock the form. If not, you will need to use Form 3508. With the 3508EZ, you must upload all documentation to support the eligible expenses you on the application.
3508 – If you are not eligible for the 3508S or the 3508EZ, you must completed this form. You are required to upload all documentation to support the eligible expenses you list on the application.
REMEMBER: To be eligible for full forgiveness you must spend at least 60% of the PPP funds on Payroll Expenses. Also, Your covered period can be any date between 8 weeks and 24 weeks from the disbursement date on your loan.
Revenue Reduction Documentation Requirements: The following are the primary sets of documentation Applicants can provide to substantiate their certification of a 25 percent gross receipts reduction (only one set is required):
- Quarterly financial statements for the entity. If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, the Applicant must annotate which line item(s) constitute gross receipts.
- Quarterly or monthly bank statements for the entity showing deposits from the relevant quarters. The Applicant must annotate, if it is not clear, which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions).
- Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, the Applicant must fill out the return forms, compute the relevant gross receipts value (see Question 5), and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity’s tax return.
If you need any assistance, please call 1-888-300-0110.
No payment is due during the deferral period, which ends on the earlier of:
- The date when the SBA remits any forgiveness amount to us or determines that the loan is not eligible for forgiveness or;
- 10 months after the last date of the covered period.
After the deferral period, any balance that is not forgiven (including any accrued interest on the unforgiven portion) will become a term loan with monthly payments due up to the maturity date and with an annual interest rate of 1%. There is no penalty for loan pre-payment.
Please refer to the SBA site for more details on the covered period, the term of the loan and other loan forgiveness details.
- You are a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of your PPP loan application, and you did not include any employee salaries in the computation of average monthly payroll.
- You did not reduce annual salary or hourly wages of any employee by more than 25% AND did not reduce the number of full-time equivalent (FTE) employees (or the average paid hours of employees.)
- You did not reduce annual salary or hourly wages of any employee by more than 25% AND were unable to operate at pre-COVID-19 levels of business activity during the covered period due to compliance with government standards of sanitation, social distancing, or any other safety requirement related to COVID-19.
- Eligible payroll costs, including compensation to owners and employee benefits;
- Interest payments on business mortgage obligations on real or personal property, where the mortgage originated before February 15, 2020, (but not any payment of principal or prepayment of interest).
- Business rent or lease payments for real or personal property, where the rent or lease agreement was in force before February 15, 2020;
- Business utility payments for a service such as electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020;
- Gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation;
- Payments for employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees;
- Payments for employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees;
- Payments for employer state and local taxes assessed on employee compensation (such as state unemployment insurance tax), excluding any taxes withheld from employee earnings;
- Covered period: The period that begins on the date you received the PPP loan proceeds; or
- Alternative payroll covered period: If you have a biweekly or more frequent payroll schedule, the period that begins on the first day of the first pay period after you received the PPP loan proceeds.
- Compensation to an employee whose principal place of residence is outside of the United States;
- Compensation to an independent contractor (1099). Independent contractors do not count as employees for PPP;
- Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116–127)
- Interest payments on business mortgage obligations on real or personal property, where the mortgage originated before February 15, 2020, (but not any payment of principal or prepayment of interest.).
- Business rent or lease payments for real or personal property, where the rent or lease agreement was in force before February 15, 2020;
- Business utility payments for a service such as electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020.
- A position for which you made a good-faith, written offer to rehire an employee during the covered period selected and the offer was rejected – subject to certain requirements;
- An employee who was fired for cause, voluntarily resigned, or voluntarily requested a reduction of their hours, during the covered period selected;
- A documented inability to rehire particular employees or hire replacement employees for unfilled positions;
- A documented inability to return to normal business activities because of COVID related safety requirements.
- You reduced FTE employee levels between February 15, 2020, and ending April 26, 2020; and
- You then restored FTE employee levels by no later than December 31, 2020.
- February 15, 2019 to June 30, 2019; or
- January 1, 2020 to February 29, 2020; or
- For seasonal employers, either of the preceding periods or a consecutive 12-week period between May 1, 2019 and September 15, 2019.
- You made a good faith, written offer to rehire or restore hours (as applicable) during the covered period or alternative payroll covered period;
- The offer was for the same salary or wages and the same number of hours;
- The offer was rejected;
- You maintain records documenting the offer and rejection; and
- You inform the state unemployment insurance office of the rejected offer within 30 days.
- Bank account statements or third-party payroll service provider reports;
- Tax forms including IRS Payroll tax filings (typically Form 941) and state quarterly business and individual wage reporting and unemployment insurance tax filings;
- Payment receipts, cancelled checks, or account statements documenting employer benefits contributions.
- Business mortgage interest payments: account statements or amortization schedules and receipts or cancelled checks;
- Business rent or lease payments: account statements or current lease and receipts or cancelled checks;
- Business utility payments: account statements or invoices and receipts or cancelled checks.
- Form 3508EZ does not have a Schedule A.
- The FTE report is not required.