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We are here to provide our clients with the direct access, tools, and resources you need to participate in the Paycheck Protection Program and facilitate your forgiveness application.
We will use this page to share the most frequently asked questions we’re hearing from our clients about loan forgiveness, and we’ll continue to update it as more information becomes available from the U.S. Small Business Administration (SBA).
For clients who currently have PPP loans, we will invite them directly by email to submit their PPP Forgiveness Application via our online portal. Please note, this invitation to apply was sent to the email associated with your PPP loan. If you have not received an invitation to apply for forgiveness, please contact us at 877-538-3335.
Information provided by the Bank, on this website and through other resources, should not be considered a substitute for legal or accounting advice. Borrowers are encouraged and should confirm legal and accounting advice through their consultants and through their own due diligence.*
* Please note that the information provided below is based on guidance provided by the U.S. Treasury and the SBA, including information included as part of the form of Paycheck Protection Program Loan Forgiveness Application currently published by the SBA. This information is posted here solely for your convenience. It is not intended to be, and should not be considered, comprehensive or definitive. To the extent of any conflict between any information posted below or in any FAQ and the information and guidance issued directly by the SBA and/or the U.S. Treasury, the information provided directly by the SBA and/or U.S. Treasury will control.
Per SBA Notice 5000-827666, under certain circumstances specified by the SBA, some PPP borrowers that received a partial forgiveness payment on their PPP loans in an amount less than the full amount of their PPP loan, have a right to request an SBA review of their loan.
If your forgiveness request were eligible, then you would receive an email and/or letter from us and you would have 30 calendar days from receipt of the notification to request an SBA review of your partial approval decision. Once you inform us of your request, we will notify the SBA of your request for review.
Please note that this right to request an SBA review of your loan does not extend the deferral period on your loan. If, in its sole discretion, the SBA undertakes a review of your loan, then you will be required to make payments on your remaining PPP loan balance while your loan is under review.
The SBA has no obligation to accept a loan for review. If it does conduct a review of your loan, at your request, then the SBA may determine that you are entitled to forgiveness in an amount less than what the Bank decided (including zero if, for example, the SBA determines you were ineligible for the PPP loan), an amount more than what the Bank decided, or the same amount as the Bank decided.
PPP loans are subject to the SBA’s post-payoff review of the accuracy of information submitted in your loan application and forgiveness application; be sure to retain copies of all information provided to us in connection with your loan application and forgiveness submission. The SBA has up to six years to audit PPP loans. We recommend you retain all relevant documentation for at least six years from the date your loan was forgiven.
The Small Business Administration (SBA) released an Interim Final Rule (IFR) on July 28, 2021 that may impact borrowers applying for forgiveness with loans $150,000 or less.
Over the weekend, Hancock Whitney transferred current forgiveness applicants to the new forgiveness applications that incorporate the latest regulatory updates from the SBA. As part of this process, you will need to log in to the online portal to complete newly added application fields and re-submit your forgiveness application to the Bank for review.
In connection with its release of new application forms, we anticipate that the SBA will be making some changes to its submission interfaces in early March that will require us to update our portal to include the new application forms and interfaces to the SBA systems. To accommodate the system updates we are temporarily suspending the acceptance of new forgiveness applications. Starting from February 18, 2021 borrowers will not be able to start a new forgiveness application until our forgiveness portal is re-opened in early March. We will let you know the date the portal will be re-opened.
We apologize for any inconvenience caused by this pause in the acceptance of forgiveness applications and look forward to being able to provide you the new streamlined applications.
The SBA has added a new certification form to be completed in connection with a Borrower's forgiveness application. The "Borrower's Disclosure of Certain Controlling Interests" requires Borrowers to disclose whether certain Government Officials, deemed "Covered Persons" owned a controlling (20%) interest in the Borrower at the time the Borrower applied for its PPP Loan. Borrowers who have already applied for forgiveness are also required to complete this form and submit it to their PPP Lender by January 26, 2021. We cannot make this form available to you to execute through our online forgiveness portal in this short time frame. Accordingly, to meet this deadline you will need to print out the form, complete it and return it to your Banker.
Please note that the 3508-D ONLY needs to be completed by borrowers that received a PPP loan before 12/27/2020 AND were directly or indirectly controlled by certain government officials (President, VP, Member of Congress, Head of Executive Department and their spouses) at the time the loan was made.
Please refer to the SBA site for more details.
On Wednesday, January 6, 2021, the SBA released two new rules, Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act and Interim Final Rule on Second Draw Loans, that provide further clarity on both first and second draw PPP loans.
On Friday, January 8, 2021, the SBA announced that the Paycheck Protection Program (PPP) will re-open the week of January 11, 2021 to accept new applications made only through community financial institutions.
The SBA will open its portal to other larger lenders, including Hancock Whitney, no earlier than the week of January 18th. We will announce the date we can start accepting applications as soon as possible for new borrowers and eligible existing PPP borrowers. The program will have two separate components:
In the interim, please continue to access our PPP Loan Forgiveness Page to review the most frequently asked questions we’re hearing from our clients and access additional links, resources, and SBA updates to assist you with the PPP loan process. We are also currently updating our online application to accommodate these changes in preparation of the SBA reopening the PPP application process.
If you plan to apply for a second PPP loan, please note that your application will be pre-populated in our portal based on previously collected information from your first PPP loan. Before such capabilities are launched, we recommend that you familiarize yourselves with the latest regulatory guidance and documentation requirements for an efficient application and bank review process.
If you previously obtained a PPP Loan from another lender, you should consider returning to that lender for a Second Draw request in order to streamline your application and avoid processing delays.
If you did not previously receive a PPP loan with us, we ask that you reach out to your banker or call one of our dedicated PPP associates at 877-538-3335. They will be able to assist in providing you access to our portal once available.
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Borrowers may now include the below expense categories when applying for forgiveness:
Specific operations expenses;
Property damages related to public unrest during 2020;
Supplier costs; and
Personal protective equipment.
Please continue to look for our updates, new FAQs, and additional resources as they become available.
A new round of stimulus relief via the Coronavirus Response and Relief Supplemental Appropriations Act as part of the Consolidated Appropriations Act, 2021, has been passed.
The Bank will wait for further guidance from the SBA on how to implement these changes. As we receive additional regulatory guidance and timelines on the new round of stimulus relief, we will continue to provide you with updates.
Below are key highlights from the bill:
We are currently awaiting on additional regulatory guidance on these changes and will continue to provide updates as we learn more about the changes to PPP.
The SBA was ordered by the United States District Court for the District of Columbia to release the names, addresses and loan amounts for all PPP loan recipients and all COVID-19-related Economic Injury Disaster Loan recipients. This court order was in response to lawsuits brought by media organizations seeking the data.
Companies that received PPP and/or EIDL funding should be aware that due to this ruling, their business information and loan amount was released on December 1st and is available to the general public and media via the SBA data release.
Banks that issued PPP loans played no role in the decision to release this information. Our commitment to protect your privacy is paramount, and we follow all applicable laws and regulations.
Please be aware that some third party businesses may use information from this court ordered release to market themselves to PPP Borrowers, even referencing the Bank’s name in some cases. Any such marketing attempts are not authorized by the Bank.
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ApplicationTo receive loan forgiveness, a borrower must complete and submit the Loan Forgiveness Application to the Bank. Once you have met the criteria for forgiveness, you may submit a loan forgiveness application any time between the period starting eight weeks after the date of your loan and ending before the maturity date of your loan. You do not need to wait until the end of the 24 -week covered period to apply. As a reminder, you may select a covered period of eight to 24 weeks when applying for forgiveness.
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Decision IssuedWithin 60 days from receipt of your complete application, we will review the application and issue a decision regarding loan forgiveness to the SBA. If Hancock Whitney determines that you are entitled to forgiveness of some or all of the amount applied for under the state and applicable regulations, we will request payment from the SBA at the time we issue our decision to the SBA. |
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Forgiveness Amounts Remitted
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Interest payments on any business mortgage obligation on real or personal property that was incurred before February 15, 2020 (but not any prepayment or payment of principal).
Payments on business rent obligations on real or personal property under a lease agreement in force before February 15, 2020.
Business utility payments for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020.
Review our PPP Loan Forgiveness Application Checklist.
An eligible borrower that received a loan of $150,000 or less is not required to submit any documentation in addition to the certification and information required by the Small Business Act.
However, such borrowers must retain records related to employment records for the 4-year period following submission of the laon forgiveness application, and with respect to other records, for the 3-year period following submission of the loan forgiveness application.
Payroll report demonstrating cash compensation to each individual employee and individual owner for the entire Covered Period so the Bank may ensure SBA compensation limits are enforced.
Bank account statements, cancelled checks, or third-party payroll service provider reports verifying the amount of cash compensation paid to employees.
Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the covered period:
The documentation required for Full-Time Equivalent (FTE) employees is dependent on the application type.
For 3508 EZ #1 Forgiveness Applications (No Employee Reduction) you must provide documentation showing the average number of FTE employees on payroll as of January 1, 2020 and on payroll at the end of your Covered Period.
For 3508 Standard Forgiveness Applications, you must provide documentation showing the average number of FTE employees during your Covered Period and the average number of FTE employees during one of the following Reference Periods:
The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the borrower that is at least 8 weeks following the date of loan disbursement and is not more than 24 weeks after the date of loan disbursement. For example, if the borrower received their PPP loan proceeds on Monday, April 20, 2020, the first day of the Covered Period is Monday, April 20, 2020, and the final day of the Covered Period is any date selected by the borrower between Sunday, June 14, 2020, and Sunday, October 4, 2020.
Payroll costs paid or incurred during the Covered Period and consist of:
Please visit the SBA site for more information.
Please visit the SBA site for more information.
For loans made before June 5, 2020, the maturity is two years from the date the loan was made; however, borrowers and lenders may mutually agree to extend the maturity of such loans to five years. If after you applied for forgiveness you receive a decision on your application that does not result in full forgiveness, then it may be appropriate to ask the bank to consider a request to extend the term of your PPP loan if such extension is financially necessary.
For loans made on or after June 5, 2020, the maturity is five years from the date the loan was made.
The amount of your loan that is eligible to be forgiven will be determined based on the total amount of loan proceeds that you spend during the Covered Period to retain employees ("eligible payroll costs" and on certain other non-payroll covered expenses including mortgage interest, rent, utilities, operational expenses, property damage, supplier cost, and worker protection).
At least 60% of the amount forgiven must be attributable to eligible payroll costs while only up to 40% can be used on non-payroll covered expenses. Note: the PPP loan can be forgiven in whole or in part.
For example, if a borrower receives a $100,000 PPP loan and spends $54,000 (or 54 percent) of the loan on payroll costs, the maximum amount of loan forgiveness the borrower may receive is $90,000 because the borrower used less than 60 percent of the loan on payroll costs (with $54,000 in payroll costs constituting 60 percent of the forgiveness amount and $36,000 in non-payroll costs constituting 40 percent of the forgiveness amount).
For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. For example, the maximum amount of cash compensation for an individual employee during a 24-week Covered Period is $46,154.
Please visit the SBA site for more information.
Yes. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. An eligible borrower will not be responsible for any loan payment if the borrower uses all loan proceeds for forgivable purposes as described below and employee and compensation levels are maintained or, if not, an applicable safe harbor applies. The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations entered into before February 15, 2020, rent payments on leases entered into before February 15, 2020, utility payments for service that began before February 15, 2020, and operational expenses, property damage, supplier cost, and worker protection cost over the loan forgiveness Covered Period.
Yes. The CARES Act defines the term “payroll costs” broadly to include compensation in the form of salary, wages, commissions, or similar compensation. 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.
Yes. To receive full forgiveness, at least 60% of the PPP loan must be used for payroll costs, and not more than 40% of the loan forgiveness amount should be attributable to nonpayroll costs. Unless you are a borrower of PPP loans of $50,000 or less, forgiveness is also based upon maintaining or quickly rehiring employees and salary levels. Your Loan Forgiveness amount may be reduced if there is a decrease in the number of your Full-Time Equivalent (FTE) employees or if there is a decrease in salaries and wages.
Please visit the SBA site for more information.
In calculating its loan forgiveness amount, a borrower may exclude any reduction in FTE employees if the borrower is able to document in good faith the following:
Borrowers are required to inform the applicable state unemployment insurance office of any employee’s rejected rehire offer within 30 days of the employee’s rejection of the offer.
The documents that borrowers should maintain to show compliance with this exemption include the written offer to rehire an individual, a written record of the offer’s rejection, and a written record of efforts to hire a similarly qualified individual.
Please note that borrowers of PPP loans of $150,000 or less may be exempt from such requirements.
No. When an employee of the borrower is fired for cause, voluntarily resigns, or voluntarily requests a reduced schedule during the covered period or the alternative payroll covered period (FTE reduction event), the borrower may count such employee at the same full-time equivalency level before the FTE reduction event when calculating the FTE employee reduction penalty. Borrowers must submit appropriate documentation regarding employee terminations, resignations and reductions in hours.
Please note that borrowers of PPP loans of $150,000 or less may be exempt from such requirements.
Yes, if the payroll costs are paid on or before the next regular payroll date after the Covered Period.
Yes.
Yes, eligible business mortgage interest costs, eligible business rent or lease costs, eligible business utility costs, operational expenses, property damage, supplier cost, and worker protection cost incurred prior to the Covered Period and paid during the Covered Period are eligible for loan forgiveness.
Nonpayroll costs are eligible for loan forgiveness if they were 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.
You will be responsible for repayment of loan amounts that are not forgiven by making monthly payments to us in accordance with the terms of your note.
Within 30 days of notice from the lender, a borrower may notify the lender that it is requesting that the SBA review the lender's decision by reviewing the loan in accordance with 2.c. below.
Within 5 days of receipt, the lender must notify the SBA of the borrower's request for review. The SBA will notify the lender if the SBA declines a request for review.
If the borrower does not request the SBA review or the SBA declines the request for review, the lender is responsible for notifying the borrower of the date on which the borrower's first payment is due.
If the SBA accepts a borrower's request for review, the SBA will notify the borrower and the lender of the results of the review. If the SBA denies forgiveness in whole or in part, the lender is responsible for notifying the borrower of the date on which the borrower's first payment is due.
Enabling the SBA to use the statutory 90-day period to review the PPP loan and forgiveness documentation is an appropriate procedural protection to prevent fraud or misuse of PPP funds, ensure that recipients of PPP loans are within the scope of entities that the CARES Act is intended to assist, and confirm compliance with the PPP requirements set forth in the statute, rules, and guidance.
If you submit a completed loan forgiveness application to your lender for submission to the SBA within 10 months after the end of your loan forgiveness covered period, you will not have to make any payments of principal or interest on your loan before the date on which SBA remits the loan forgiveness amount on your loan to your lender (or notifies your lender that no loan forgiveness is allowed).
The SBA will cover all principal and accrued interest related to the forgiven portion of the loan if the borrower submits their completed forgiveness application prior to the 24-week covered period plus ten months.
Your “loan forgiveness covered period” is the 24-week period beginning on the date your PPP loan is disbursed; however, if your PPP loan was made before June 5, 2020, you may elect to have your loan forgiveness covered period be the eight-week period beginning on the date your PPP loan was disbursed.
Your lender must notify you of remittance by SBA of the loan forgiveness amount (or notify you that SBA determined that no loan forgiveness is allowed) and the date your first payment is due. Interest continues to accrue during the deferment period.
If you do not submit a completed loan forgiveness application to your lender for submission to the SBA within 10 months after the end of your loan forgiveness covered period, you must begin paying principal and interest after that period.
The amounts required to compute gross receipts varies by the entity tax return type:
Add the gross receipts for your Schedule C business with the gross receipts for your Schedule F business together and compare this sum against the sum of your gross receipts for your Schedule C and Schedule F business gross receipts for the reference period you choose (either quarterly or annually).
For clients who currently have PPP loans, we will invite them directly by email to submit their PPP Forgiveness Application via our online portal. Please note, this invitation to apply will be sent to the email associated with your PPP loan. If you have not received an invitation to apply for forgiveness, please contact us at 877-538-3335.
To receive loan forgiveness:
Please visit the SBA site or the U.S. Department of the Treasury for more information.
You may submit a loan forgiveness application any time on or before the maturity date of the loan - including before the end of the covered period - if you have used all of the loan proceeds for which you are requesting forgiveness.
If the borrower applies for forgiveness before the end of the covered period and has reduced any employee's salaries or wages in excess of 25%, the borrower must account for the excess salary reduction for the full 8-week or 24-week covered period.
If the borrower does not apply for loan forgiveness within 10 months after the last day of the covered period, or if SBA determines that the loan is not eligible for forgiveness (in whole or in part), the PPP loan is no longer deferred and the borrower must begin paying principal and interest.
If this occurs, the Bank will notify the borrower of the date the first payment is due.
To help facilitate your loan forgiveness application, we recommend that you:
Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period consisting of each of the following:
The documentation for FTE is dependent on the application type.
For the 3508 EZ #1 Forgiveness Application (No Employee Reduction) you must provide documentation showing the average number of FTE employees on payroll as of January 1, 2020 and on payroll at the end of your Covered Period.
For 3508 Standard Forgiveness Applications, you must provide documentation showing the average number of FTE employees during your Covered Period and the average number of FTE employees during one of the following Reference Periods:
The selected time period must be the same time period selected for purposes of completing PPP Schedule A, line 11. Documents may include third-party payroll provider FTE reports, company generated FTE reports (for each employee, enter the average number of hours paid per week, divided by 40, and round to the nearest tenth. The maximum for each employee is capped at 1.0. A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may also be used at the election of the Borrower),
payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
Documents submitted may cover periods longer than the specific time period.
Please note that borrowers of PPP loans of $150,000 or less may be exempt from such requirements.
Qualified documentation that are related to: (1) an inability to rehire individuals who were employees of the borrower on February 15, 2020; and (2) an inability to hire similarly qualified individuals for unfilled positions on or before December 31, 2020:
PPP Schedule A Worksheet, or its equivalent, and the following:
You are eligible to use the SBA Form 3508EZ to apply for forgiveness of your PPP loan if at least one of the following criteria is met:
For more information about EZ Form eligibility, please see 3508EZ Form Instructions.
You can apply for forgiveness of your Paycheck Protection Program (PPP) loan using SBA Form 3508S only if the total PPP loan amount you received from your Lender was $150,000 or less. However, a borrower that together with its affiliates received PPP loans totaling $2 million or more cannot use this form.
Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:
Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
All records relating to the borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the borrower’s certifications as to its eligibility for a PPP loan, documentation necessary to support the borrower’s loan forgiveness application, and documentation demonstrating the borrower’s material compliance with PPP requirements. The borrower must retain all such 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.
Two separate safe harbors are available to exempt borrowers, who meet the requirements for exemption, from any reduction in the amount of their loan forgiveness based on a reduction in FTE employee levels:
Yes. The SBA may review any PPP loan, as the Administrator deems appropriate. Specifically, the Administrator is authorized to review the (i) borrower eligibility, (ii) loan amounts and use of proceeds, and (iii) loan forgiveness amount.
For a PPP loan of any size, the SBA may undertake a review at their discretion. As noted on the Loan Forgiveness Application Form, the borrower must 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 the SBA to access such files upon request.
Please visit the SBA site for more information.
If the EIDL loan is used for payroll costs and the EIDL loan was funded between January 31, 2020 and April 3, 2020, the PPP loan must be used to refinance the EIDL loan. An EIDL loan may not be refinanced with a PPP loan when the PPP borrower received the EIDL loan before January 31, 2020 or after April 3, 2020; and an EIDL loan is not required to be refinanced with a PPP loan when the PPP borrower used the EIDL loan for purposes other than payroll costs.
An excess loan amount error is a borrower or lender error made in good faith that caused a borrower to receive a PPP loan amount that exceeds the borrower's correct maximum loan amount. An excess loan amount error does not include a knowing misstatement.
These may include:
A borrower may not receive loan forgiveness for any amount that exceeds the correct maximum loan amount permitted by statute for that borrower.This is true whether the excess loan amount was caused by borrower error or lender error.
The lender must issue a decision to SBA denying forgiveness for the amount that exceeded the borrower’s correct maximum loan amount.
If an excess loan amount error is discovered after the lender has already submitted a forgiveness decision to SBA, the lender should promptly request the withdrawal of the lender loan forgiveness decision by notifying SBA through the SBA Paycheck Protection Platform. The lender may then submit a new lender loan forgiveness decision for the correct amount through the SBA Paycheck Protection Platform. A borrower must repay any unforgiven portion of a PPP loan.
If a lender discovers an excess loan amount error after SBA has issued a final loan forgiveness decision and remitted payment, lender must promptly notify the borrower and SBA through the SBA Paycheck Protection Platform.
Borrower Error
If an excess loan amount error is due solely to the borrower’s error in completing the loan application form, the borrower error does not invalidate the SBA’s guarantee of the PPP loan. However, excessive occurrences or patterns of undetected borrower errors may indicate a lender did not perform a good-faith review of borrowers’ calculations or supporting documents concerning average monthly payroll costs and could be grounds for further review of the lender by the SBA, which could affect the guarantee.
Lender Error
If an excess loan amount error is due in whole or in part to the lender’s failure to satisfy its obligations under PPP rules and the document collection and retention requirements described in the lender application form, the SBA guarantee will not apply to the excess loan amount.
If the lender or SBA, as applicable, determines a borrower was ineligible for any portion of its loan amount, forgiveness will be denied for the ineligible portion and the borrower must begin making payments on the remaining loan amount. Any unforgiven loan amounts remain obligations of the borrower, even if the borrower was ineligible to receive some or all of the loan.
You do not need to provide documentation to substantiate the reduction in gross receipts upon your initial Second Draw PPP Forgiveness Application submission. The Small Business Administration (SBA) released an Interim Final Rule (IFR) on July 28, 2021 outlining a new COVID Revenue Reduction Score that Lenders may use to show that borrowers satisfy the SBA’s revenue reduction requirements, and we have started implementing the COVID Revenue Reduction Score into our processes. However, if during our review it is determined that your COVID Revenue Reduction Score does not meet the value set by the SBA, we will return your application to you and request that you include the appropriate revenue reduction documentation.
The following are the primary sets of documentation you may provide to substantiate your certification of a 25% gross receipts reduction (only one set is required):
Yes. A borrower that is eligible to use SBA Form 3508S, but applied for loan forgiveness using PPP Loan Forgiveness Application Form 3508EZ or 3508, may resubmit its loan forgiveness application to its lender using SBA Form 3508S at any time until the SBA notifies the lender of a final SBA loan review decision or remits to the lender the PPP loan forgiveness payment.
If a borrower's resubmission of a loan forgiveness application using SBA Form 3508S is timely received, the Bank will request the withdrawal of any lender loan forgiveness decision by notifying the SBA through the SBA Paycheck Protection Platform. Resubmissions after the SBA notifies the Bank of a final SBA review decision or remits to the Bank the PPP loan forgiveness payment are not permitted.
After a borrower's resubmission of a complete loan forgiveness application, the Bank will issue a decision to the SBA on the new loan forgiveness application not later than 60 days after receipt of the complete loan forgiveness application. When we issue a forgiveness decision to the SBA on the new loan forgiveness application, the SBA will, subject to any SBA review of the loan or loan application, remit the appropriate forgiveness amount to the Bank, plus any interest accrued through the date of payment, not later than 90 days after we issue our forgiveness decision to SBA.
You will receive status updates from the online portal as your application is processed. Please check your email inbox or spam folders to look for the status updates. In addition to the notifications generated from the online portal, you will also receive periodical communications from the Bank to remind you of any actionable items. Below are a few of the email communications you might receive from us during the application process:
A PPP borrower has the right to appeal to the OHA only if a final SBA loan review decision finds a borrower:
Here are the latest updates from the SBA:
Please visit the SBA site or the U.S. Department of the Treasury for more information.
No. Providing only internal payroll documentation cannot support the borrowers’ cash compensation payments. Such internal documentation must be provided together with bank statements to fulfill payroll documentation requirements. Specifically, a borrower must provide each of the following pieces of documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period:
Borrowers need to provide tax forms that have been reported or will be reported for the entire covered period. The Bank will need an estimate of the Q3 filings if the covered period extends into Q3. An example of estimated tax filings is a Form 1040-ES.
Yes. If a borrower checks only the first set of criteria for the EZ Form, along with the other documentation requirements, the borrower will need to provide documentation verifying average FTE as of January 1, 2020 as well as at the end of the Covered Period. Borrowers who received a PPP loan of $150,000 or less may be exempt from this requirement.
For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the covered period. For a 24-week Covered Period, the individual employee compensation limit is $46,154; however the owner compensation limit is $20,833 which is based on two and a half months of an annualized salary of $100,000.
Yes. For example, if a borrower claims an internet bill expense for $50 on a $200,000 forgiveness request they will still need to provide the above referenced documentation for the $50 to count towards the forgiveness request.
Borrowers who received a PPP loan of $150,000 or less may be exempt from this requirement.
A borrower should include their EIDL Advance Amount and EIDL Loan Number if they included their EIDL loan details on their PPP origination application.
Viable examples of FTE documentation include (but are not limited to): third-party payroll provider FTE reports, company generated FTE reports (for each employee, enter the average number of hours paid per week, divided by 40, and round to the nearest tenth. The maximum for each employee is capped at 1.0. A simplified method that assigns a 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours may also be used at the election of the borrower), payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state. Documents submitted may cover periods longer than the specific time period.
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