We are thrilled to let you know that the funding for the Paycheck Protection Program has been renewed. We encourage all of our eligible business customers who have not yet applied to do so.
We reached out to all customers who applied during the first round of funding via phone and/or email with a status of your application. For those who did not meet the cut-off when funding ran out, we will be prioritizing your application as noted in our communication to you on April 15th.
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities, and have the potential to be fully forgiven when at least 75% of the amount is used for payroll and employee headcounts are maintained or restored. Loan payments are deferred for six months and no collateral or personal guarantees are required. We strongly encourage you to visit the US Treasury’s CARES website for the latest information as updates are occurring on a daily basis.
CHANGES IN SBA REQUIREMENTS
On April 24, 2020 the Small Business Administration (SBA) issued updated guidance concerning the determination of loan amounts for its Paycheck Protection Program (PPP) loans. This guidance requires a new element of documentation for any PPP loan application received after 4/24/2020:
- If the business has employees, a payroll statement or similar documentation from the pay period that covered February 15, 2020 must be provided to establish the business was in operation and had employees on that date.
- If the business has no employees, an invoice, bank statement, or book of record establishing the business was in operation on February 15, 2020 must be provided.
It is very important that this new documentation establishing that the applicant was in operation as of February 15, 2020 is included with applications received after April 24, 2020. Failure to provide will result in the application being incomplete. The Bank will not be able to process an incomplete application until the supporting documentation is received.
Please note that the February 15, 2020-vintage documentation is in addition to existing requirements for 2019 tax returns and payroll documentation that pre-dated the April 24, 2020 SBA guidance. All necessary supporting documentation should be included when an application is submitted to ensure prompt processing.
The complete description of SBA and Treasury guidance can be found at the following site: https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf
The guidance addresses calculations and documentation requirements for each of these scenarios:
- Self-employed with no employees.
- Self-employed with employees.
- Self-employed farmers who report income on Schedule F.
- Subchapter S and C corporations.
- Nonprofit organizations.
- Eligible nonprofit religious organizations, veterans’ organizations and tribal businesses.
- Limited liability company owners.
HOW TO APPLY
- Go to our PPP Loan page
- Carefully read all of the instructions for applying, including information about required supporting documentation. The bank cannot begin processing your application until it is complete. The application will not be considered complete until the signed SBA Form 2483 is submitted along with the necessary supporting documentation listed on the PPP page. It is important that you provide all of the application materials to the bank promptly so that processing does not get delayed.
- Link to the application in the blue box on the upper right hand side of the page in the “Related Links”, or click “complete this application” at the bottom of the page. We ask that you use this application as we have set it up with DocuSign so that you can sign it and send it electronically in that system. You do not need to print it out, complete it manually and scan it back to us. We hope that this saves you time and makes the process easier.
- We expect to get hundreds of applications right away so it may take a few days until we can get back to you to confirm receipt of your application. Someone will review it prior to reaching out to you to ensure that it is complete. Again, it is very important that we have a complete application with all of the backup information or your application will be delayed.
If you have any questions about this process, please contact your Commercial Loan Officer for assistance. Thank you so much for your continued business.
We’re all in this together.