Paycheck Protection Program Resource Center

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed to help businesses through these times of uncertainty.

IMPORTANT ALERT: The PPP program ends on March 31, 2021. Completed applications for PPP Loans will not be accepted after 5 PM CT on March 15, 2021.

IMPORTANT ALERT for sole proprietors, independent contractors, self-employed persons, and other Schedule C filers.

On March 3, 2021, the SBA announced new eligibility rules and issued a new PPP application for these businesses. Our bank is evaluating the requirements for adding this new application to our online portal. At this time, we are not able to accept this new application.
Please check back for updates.


The SBA issued new applications for PPP Loan Forgiveness and will no longer accept previous versions of PPP Loan Forgiveness applications.

The new versions of forgiveness applications are expected to be available in our online portal on April 1, 2021.

 

Summary of PPP Loan Forgiveness Application Changes

PPP Loans <= $150K – Simplified 1-page Forgiveness Application
PPP Loans > $150K – Additional Allowable Covered Expenses


PPP Loan Portal

Log in to PPP Loan Portal

PPP First Draw Loans

Click Here

PPP Second Draw Loans

Click Here

PPP Forgiveness
Resource Center

Click Here

PPP Frequently
Asked Questions

Click Here

Latest Updates on the Paycheck Protection Program

SBA Released Revisions for Schedule C Filers and Eligibility Rules

March 3, 2021 - The SBA released additional revisions to the PPP loan program which allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income, removes the eligibility restriction that prevents businesses with owners who have non-financial fraud felony convictions in the last year from obtaining PPP loans, and removes the eligibility restriction that prevents businesses with owners who are delinquent or in default on their Federal student loans from obtaining PPP loans.

Read More

SBA Will Pause Accepting Some Applications for 14-Day Period

February 22, 2021 - The Biden Administration announced that beginning February 24th, the SBA will institute a 14-day pause on accepting new PPP loan applications for employers with 20 employers or more.

Read More

Resources for the Premier Valley Bank PPP Loan Portal

First Draw Portal Guide

 

Click for First Draw
Portal Guide (PDF)

Second Draw Portal Guide

 

Click for Second Draw
Portal Guide (PDF)

Portal First Time Log In

 

Click for First Time
Log In Guide (PDF)

Forgotten Portal Password

 

Click for Forgotten Portal
Password Guide (PDF)

Click here to view an important note before clicking on links within the videos. © 2021 nCino, Inc. All Rights Reserved.

Additional Resources for our Paycheck Protection Program customers

PPP Forgiveness Portal

PPP Loan Forgiveness

Premier Valley Bank customers can now register and apply for PPP Loan Forgiveness. Click for our PPP Forgiveness Resource Center

HTLF Strength

Strength in Uncertain Times

Our local banking team is backed by the strength, stability and expertise of a $15 billion organization. Click to learn more

2021 Business Outlook

2021 Economic Outlook Webinar

Exclusive webinar event for our valued partners and clients. Click to learn more

Fraud Center

Business Insights

Fraudsters may take advantage during times of vulnerability, which means extra care needs to be taken. Find insights to staying one step ahead.Click to learn more

 

Click for Paycheck Protection Program FAQs

 

Paycheck Protection Program Updates

  • SBA Released Revisions for Schedule C Filers and Eligibility Rules - March 3, 2021

    March 3, 2021 - SBA Released Revisions for Schedule C Filers and Eligibility Rules

    The SBA released additional revisions to the PPP loan program which allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income, removes the eligibility restriction that prevents businesses with owners who have non-financial fraud felony convictions in the last year from obtaining PPP loans, and removes the eligibility restriction that prevents businesses with owners who are delinquent or in default on their Federal student loans from obtaining PPP loans.

    Revisions to Loan Amount Calculation and Eligibility Interim Final Rule (SBA Released 03-03-21)

    Updated SBA PPP FAQs (SBA Released 03-03-21)

  • SBA Will Pause Accepting Some Applications for 14-Day Period - February 22, 2021

    SBA Will Pause Accepting Some Applications for 14-Day Period

    February 22, 2021The Biden Administration announced that beginning February 24th, the SBA will institute a 14-day pause on accepting new PPP loan applications for employers with 20 employers or more. During this period, the SBA will focus on accepting PPP applications for sole proprietors and other eligible employers with less than 20 employees. The SBA is setting aside $1 billion in PPP funds for these smaller businesses located in low- and moderate-income (LMI) areas.

    Q: Will the bank continue to accept new applications of borrowers during this small business period of 2/24 – 3/9?

    A: Yes. We will continue to accept new applications and process existing applications of all sizes, up to and through this 14-day pause period, as well as following this period. Our bank team will continue to prepare these completed applications so that these can be submitted to the SBA as soon as possible (e.g., following the pause period for businesses with 20 or more employees).

    Q: Will the funds run out after the small business period ends on 3/9?

    A: We do not anticipate the funds will run out during this time period. The second round of the PPP loan program was opened on January 19. As of February 19, there is approximately $150 billion of the $284 billion in PPP funds still available. Additionally, due to the 14-day pause period, it is possible that the March 31, 2021, application deadline may be extended.

    Q: If my PPP loan application was submitted before February 24, will its processing be delayed until after the 14-day pause period?

    A: For borrowers with 20 or more employees, the bank is striving to submit as many completed applications as possible to the SBA before the 14-day pause period goes into effect on February 24, 2021. If we are not able to complete review and submission before February 24, we will continue to prepare applications so that we can submit at the earliest date following the pause period. For businesses with fewer than 20 employees, we will continue to review, process and submit your application without delay. For businesses at any size that have already received SBA approval, your loan will continue to be funded without delay.

  • New Round of PPP Loan Applications and Second Draw Loan Applications - January 8, 2021

    January 8, 2021 - New Round of PPP Loan Applications and Second Draw Loan Applications

    On January 8, 2021, the SBA released additional guidance regarding the Paycheck Protection Program (PPP). Congress has set aside funds for new and smaller borrowers, borrowers in underserved communities, and for smaller community banks and smaller lenders. So, the SBA will roll out the PPP program in phases:

    • Some community banks and smaller lenders may start accepting first PPP Loan applications on January 11, 2021, and Second Draw Loan applications on January 13, 2021.
    • All other participating lenders, including Premier Valley Bank, shortly after that.

    RESOURCES

    At Premier Valley Bank, the PPP is administered online only. Premier Valley Bank will not be able to accept paper applications for the PPP. All information and correspondence related to PPP will be provided online and through email, including the application process, submission of required documentation and follow-up correspondence. 

  • New PPP Program Update - December 27, 2020

    December 27, 2020 - New PPP Program Update

    On December 27, 2020, President Trump signed the stimulus bill that includes the new Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, authorizing $284 billion for an enhanced PPP loan program. While new rules and applications are expected in the coming weeks, we wanted to highlight some of the more important changes and let you know where to find further information as it becomes available.

    In general, benefits available to small businesses fall within four categories:

    1. Changes to the original PPP loan program, including a simplified loan forgiveness process, more favorable tax treatment, and other program enhancements;
    2. A second draw program for eligible borrowers that have used their original PPP loan funds;
    3. New loans for first time PPP borrowers; and
    4. Enhancements to other SBA loan programs, including payments made by the SBA on behalf of eligible borrowers.

    Paycheck Protection Program Enhancements

    1. Clarifies Tax Treatment – Specifies that gross income does not include the amount of your PPP loan forgiveness nor prevent deductions for otherwise deductible expenses paid with the proceeds of a PPP loan.
    2. Repeals the Deduction of EIDL Advances from PPP Forgiveness Amounts – Specifies that EIDL advances will no longer be withheld from PPP Forgiveness amounts and borrowers who have had EIDL advances withheld will be made whole.
    3. Clarifies Group Insurance Benefits Included in Payroll Costs – Specifies that group life, disability, vision, and dental insurance benefits are included in payroll costs. 
    4. Provides a Simplified Forgiveness Application for Loans of $150,000 or Less – Requires only a one-page certification to apply for forgiveness.
    5. Allows for Additional Non-Payroll Expenses to be Included in the Calculation of the Amount Forgiven – these expenses include:
      1. Additional Operating Expenses including software, cloud computing, HR, and accounting needs
      2. Property Damage Costs caused by public disturbance and not covered by insurance
      3. Covered Supplier Costs – payments made to a supplier to satisfy a contract or PO essential to operations at time expenditure was made. Suppler costs for perishable goods can be made before or after the life of the loan. 
      4. Covered Worker Protection Expenses for PPE and other adaptive costs to help comply with local, state, or federal safety guidance related to COVID-19 between March 1, 2020, and the end of the emergency declaration.

    Second Draw Loans

    Forgivable, Second Draw Loans will be available to eligible PPP borrowers in an amount equal to 2.5X the average monthly payroll costs up to a maximum of $2 million. Eligible borrowers must have spent their original PPP loan proceeds, experienced a 25% decrease in gross receipts compared to the same period in 2019, employ no more than 300 employees and meet certain other requirements. Borrowers in industries assigned to NAICS code 72 (Accommodations and Food Services) may receive loans of up to 3.5X average monthly payroll costs.

    New PPP Loans for First Time Borrowers

    The PPP loan program will be re-opened to new PPP borrowers, with expanded categories of eligible borrowers.

    Payments on Existing PPP Loans and Other Program Enhancements

    Beginning in February, the SBA will resume making principal and interest payments on certain qualifying SBA non-PPP loans for up to three months in most cases. Additional enhancements will also be made to other SBA loan programs.

    Treatment of EIDL Advances on PPP Loan Forgiveness

    The CARES Act originally required the Small Business Administration (SBA) to deduct the amount of any Economic Injury Disaster Loan (EIDL) Advance received by a Paycheck Protection Program (PPP) borrower from the PPP forgiveness payment. On October 2, 2020, the SBA began sending forgiveness payments to PPP lenders, with the required EIDL Advance deductions.

    Effective December 29, 2020 the SBA no longer deducts EIDL Advances from forgiveness payments sent to PPP lenders. 

    For those loans in which the SBA sent a forgiveness payment that was reduced by an EIDL Advance, the SBA will automatically send a payment for the previously-deducted EIDL Advance amount, plus interest through the remittance date.

  • PPP Update - December 23, 2020

    December 23, 2020 - PPP Update

    We are closely monitoring the developments of the next stimulus bill. The bill has been approved by the House and Senate but has yet to be signed by the President, so the bill is not final and it is possible that changes may still occur.

    Given the significance of the changes to PPP loan forgiveness, we are advising customers that have not completed and submitted their forgiveness application not to do so until we provide further guidance.

    We will continue to closely monitor developments and will communicate through email and our PPP Forgiveness Resource Center as details are made available. We plan to begin sending direct email communication with additional information on the new stimulus bill to our current PPP Clients the week of December 28, 2020.

    In the meantime, please take time in the coming days to enjoy the holidays with family and friends both near and far.

  • SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less - October 8, 2020

    October 8, 2020 - SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less

    The U.S. Small Business Administration, in consultation with the Treasury Department, recently released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.

    • Click here for the SBA Press Release.
    • Click here to view the SBA simpler loan forgiveness application.
    • Click here to view the SBA Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.
    • The complete SBA FAQ document can be found here.

    We are working to quickly understand how this affects our client borrowers. We will be communicating with our clients with PPP Loans of $50,000 or less to provide additional information soon. Please continue to visit our PPP Forgiveness Resource Center for updates on PPP Forgiveness.

  • Additional SBA Guidance Released - August 24, 2020

    August 24, 2020 - Additional SBA Guidance Released

    On August 24, the Small Business Administration (SBA), in consultation with the Department of the Treasury, provided guidance on the Treatment of Owners and Forgiveness of Certain Nonpayroll Costs. The complete SBA FAQ document can be found here.

  • SBA Guidance on PPP Loan Forgiveness - August 13, 2020

    SBA Guidance on PPP Loan Forgiveness - August 13, 2020

    On August 11, the Small Business Administration (SBA), in consultation with the Department of the Treasury, provided guidance to address borrower and lender questions concerning forgiveness of Paycheck Protection Program (PPP) loans. The complete SBA FAQ document can be found here.

  • CISA Tracking Fraudulent Emails Posing as SBA - August 12, 2020

    CISA Tracking Fraudulent Emails Posing as SBA - August 12, 2020

    The Cybersecurity and Infrastructure Security Agency (CISA) is currently tracking an unknown malicious cyber actor who is spoofing the Small Business Administration (SBA) COVID-19 loan relief webpage via phishing emails. These emails include a malicious link to the spoofed SBA website that the cyber actor is using for malicious re-directs and credential stealing.

    For more details please see the full alert here.

    The Alert includes a screenshot of the malicious webpage and the Indicators of Compromise as well as mitigation steps.

     

  • SBA Guidance on PPP Loan Forgiveness - August 5, 2020

    SBA Guidance on PPP Loan Forgiveness - August 5, 2020

    On August 4, the Small Business Administration (SBA), in consultation with the Department of the Treasury, provided guidance to address borrower and lender questions concerning forgiveness of Paycheck Protection Program (PPP) loans. The complete SBA FAQ document can be found here.

  • PPP Forgiveness Resource Center Created to Provide Access to Important Information on the Loan Forgiveness - July 27, 2020

    Premier Valley Bank Has Created the PPP Forgiveness Resource Center to Provide Our Customers Access to Important Information on the PPP Loan Forgiveness Process - July 27, 2020 

    On the PPP Forgiveness Resource Center you will find:

    • Premier Valley Bank's PPP Forgiveness Training Video
    • Premier Valley Bank Link to PPP Forgiveness Online calculator and Application
    • Updates from the SBA on PPP
    • Forgiveness Frequently Asked Questions

    Click Here for the PPP Forgiveness Resource Center

  • Small Business Administration (SBA) Releases PPP Loan Information - July 7, 2020

    Small Business Administration (SBA) Releases PPP Loan Information - July 7, 2020 

    On July 6, the SBA chose to release PPP loan information at the request of Congress, the media and others given the significant taxpayer commitment to the program. This was not a decision made by Premier Valley Bank or any other bank that participated in the government program.

    Not all details about individual PPP loans are being released by the SBA.

    • Names of borrowers with a PPP loan under $150,000 will not be identified at this time. For loans under $150,000, only the city, state, zip code, the number of employees benefited, and the congressional district will be identified, along with the name of the lender that made the loan.
    • For PPP loans over $150,000, the SBA released the name of the business along with the information above. The SBA released a dollar range for these loans, not the exact amounts.

    PPP Loan Forgiveness
    As of July 6, the SBA has not begun to accept applications for forgiveness. Premier Valley Bank has not received any information from the SBA on when they will begin to accept applications for forgiveness. We will closely monitor SBA announcements and communicate updates in a timely fashion. Customers should not fill out or submit SBA PPP forgiveness applications to Premier Valley Bank. We will be providing customers an online tool and calculator to assist in completion of the PPP forgiveness application.

    Extension of the PPP Loan Program through August 8, 2020
    On July 4, President Trump signed the PPP Extension Bill to allow small businesses to apply for the loans through August 8. The program was expected to end on June 30; however, it is reported that approximately $130 billion of the $670 billion remained in the program.

    Premier Valley Bank will continue to support you and our other business customers as we do our part to help fuel the economic recovery in our community. We are here to help and answer any questions you may have about PPP or our other small business programs.

  • Paycheck Protection Program Flexibility Act Guidance Published - June 10, 2020

    Paycheck Protection Program Flexibility Act Guidance Published - June 10, 2020 

    On June 10, 2020, the SBA and US Treasury publish guidance for Paycheck Protection Program Flexibility Act. Read the Interim Final Rule.

  • Paycheck Protection Program Flexibility Act Becomes Law - June 5, 2020 

    Paycheck Protection Program Flexibility Act Becomes Law - June 5, 2020 

    On June 5, 2020, the Paycheck Protection Program Flexibility Act was signed by President Trump and became law. Here’s a link to the Paycheck Protection Program Flexibility Act.

  • Interim Final Rule on Loan Review Procedures and Related Borrower and Lender Responsibilities - May 22, 2020

  • Interim Final Rule on Loan Forgiveness - May 22, 2020

    On Friday, May 22, 2020, The U.S Treasury Department and the SBA issued the Interim Final Rule for PPP Loan Forgiveness.

  • Paycheck Protection Program Loan Forgiveness Application - Originally Published May 15, 2020 / SBA Updated June 16, 2020

    Paycheck Protection Program Loan Forgiveness Application - May 15, 2020 

    On May 15, 2020 the SBA published a PPP Loan Forgiveness Application and instructions.

    PLEASE DO NOT COMPLETE AND SUBMIT THIS APPLICATION AT THIS TIME.

    Premier Valley Bank is providing this as a further guide regarding forgiveness during the period between now and when you may apply for forgiveness

    Premier Valley Bank will provide an online application and calculator tool for submitting and processing forgiveness applications.

  • Employee Retention Credit Eligibility after return of PPP Loan by May 14, 2020 - May 6, 2020

    Employee Retention Credit Eligibility after return of PPP Loan by May 14, 2020 - May 6, 2020 

    Is an employer that repays its PPP loan by the safe harbor deadline (May 14, 2020) eligible for the Employee Retention Credit? Answer: Yes. An employer that applied for a PPP loan, received payment, and repays the loan by the safe harbor deadline (May 14, 2020) will be treated as though the employer had not received a covered loan under the PPP for purposes of the Employee Retention Credit. Therefore, the employer will be eligible for the credit if the employer is otherwise an eligible employer for purposes of the credit.

    US Treasury FAQ #45

  • How the SBA Will Review Borrowers’ Required Good-Faith Certification - May 13, 2020

    Today the U.S. Treasury released an additional FAQ (#46) regarding the Paycheck Protection Program.

    FAQ #46 - Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

    Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

    SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates,1 received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

    SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees.

    In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns. Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form.

    If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request.

    SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee.

    US Treasury FAQ #46

     

    1For purposes of this safe harbor, a borrower must include its affiliates to the extent required under the interim final.

  • Extension to Return PPP Funds - May 5, 2020

    Extension to Return PPP Funds - May 5, 2020 

    The SBA is extending the safe harbor date for repayment of PPP funds from May 7, 2020 to May 14, 2020 by borrowers that have concerns about their prior certification that economic uncertainty made their loan request necessary to support ongoing operations. Borrowers do not need to apply for this extension. Borrowers who determine that they have other adequate sources of liquidity that are not detrimental to business operations may return the PPP funds by May 14, 2020 and will be deemed by the SBA to have made their prior certification in good faith. The SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.

    US Treasury FAQ #42

  • Employee Refuses Rehire - May 5, 2020

    Employee Refuses Rehire - May 5, 2020

    If a borrower (employer) offers to rehire an employee at the same wages and number of hours and the employee declines the offer of employment, the borrower (employer) may exclude the laid-off employee from the forgiveness reduction calculation and that might otherwise reduce the borrower’s loan forgiveness amount if its full-time equivalent employees decrease from the level at February 15, 2020 and are not rehired by June 30, 2020. The borrower must have made a good faith written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower.

    US Treasury FAQ #40

  • Reduction in Forgiveness Due to Reduction in Employees or Wages - April 29, 2020

    Reduction in Forgiveness Due to Reduction in Employees or Wages - April 29, 2020 

    The total amount of your loan that may otherwise be forgiven may be reduced if you have a Reduction in Employees or Reduction in Salary or Wages, each as further described below, during the period beginning on February 15, 2020 and ending on April 26, 2020. This is in effect a penalty in that it may reduce your forgiveness amount beyond the reduction you might already incur if your monthly payroll costs for the 8 weeks after the date your loan is disbursed are less than the amount used to calculate your eligible loan amount.

    Click for more Information

    Note: The SBA has not yet issued complete rules and guidance on potential reductions in forgiveness and as a result, the specific requirements described below may change.

  • PPP Applications Update - April 29, 2020

    Paycheck Protection Program Update - April 29, 2020 

    We are not sending additional new applications for the SBA Paycheck Protection Program at this time.

  • PPP Applications Resume - April 27, 2020

    Paycheck Protection Program - April 27, 2020 

    The SBA will resume taking applications for the Paycheck Protection Program on Monday, April 27, 2020 at 10:30 am EDT. 

  • PPP New Funding - April 24, 2020

    Paycheck Protection Program New Funding - April 24, 2020 

    $310B of additional funding was appropriated to the SBA Paycheck Protection Program on April 24, 2020

  • Economic Uncertainty Certification – New Guidance Issued - April 23, 2020

    Paycheck Protection Program: Economic Uncertainty Certification – New Guidance Issued - April 23, 2020 

    On April 23, 2020, The U.S. Treasury Department issued an update to its PPP Frequently Asked Questions (FAQs), specifically addressing an applicant’s certification of necessity. Click here for additional details. 

    This guidance was issued under the FAQ: “Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?” However, the Treasury Department gave no guidance as to when a company might be considered “large” nor did it suggest that the criteria would only be applicable to large companies, however this may be defined in the future. 

    Although this occurred after the initial round of funding was depleted and $349 billion in loans already approved, it is apparent that the U.S. Treasury Department intends this guidance to apply to loans that have already been approved and funded. 

    If a PPP applicant, including one that already has an approved loan, did not specifically consider alternate sources of liquidity in connection with their initial application, they should do so. If other sources of liquidity are or were available to the applicant, then some assessment should be made as to whether these other sources are significantly detrimental to the applicant’s business. 

    This guidance does not require an applicant to demonstrate that they were unable to obtain credit elsewhere, but rather support their application certification that a PPP loan is necessary to support ongoing operations.

    Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith, even if they now conclude that there were other sources of liquidity available to it that were not significantly detrimental.

  • PPP Funds Depleted - April 16, 2020

    Paycheck Protection Program Funds Depleted - April 16, 2020

    The SBA announced that the $350B of funds allocated to the Paycheck Protection Program have been depleted.

    We are unable to accept requests to apply for the Paycheck Protection Program or submit any additional applications for the Paycheck Protection Program to the SBA at this time.  

    If you have previously submitted an electronic application to us, we will send you an email communication regarding the status of your application. 

    We will communicate via email and our website, if and when, we are able to accept additional applications, although this will require additional action by the government to enhance and expand the PPP loan program. 

Frequently Asked Questions on the Paycheck Protection Program

  • Q: Who could apply for a PPP Loan?

    A: All businesses – including nonprofits, veteran organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries. Click here for additional details.

  • Q: How long will this program last?

    A: Businesses can apply for a First Draw PPP Loan or a Second Draw PPP Loan until March 31, 2021. However, we encourage our customers to apply as quickly as possible because there is currently a funding cap and lenders need time to process the loans.

  • Q: How many loans can customers take out under this program?

    A: The Paycheck Protection Program now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

  • Q: Do customers need to personally guarantee this loan?

    A: No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against the borrower.***

  • Q: For what can customers use these loans?

    • Payroll costs, including benefits
    • Interest on mortgage obligations in force before February 15, 2020
    • Rent, under lease agreements in force before February 15, 2020; and
    • Utilities, for which service began before February 15, 2020
  • Q: What counts as payroll costs?

    • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
    • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
    • State and local taxes assessed on compensation; and
    • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
       
  • Q: What time period should borrowers use to determine their number of employees and payroll costs to calculate their maximum loan amounts?

    A: In general, borrowers can calculate their aggregate payroll costs using data either from the previous 12 months or from calendar year 2019.

    For seasonal businesses, the applicant may use average monthly payroll for the period between February 15, 2019, or March 1, 2019, and June 30, 2019. An applicant that was not in business from February 15, 2019, to June 30, 2019, may use the average monthly payroll costs for the period January 1, 2020, through February 29, 2020.

  • Q: The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all employee benefits of monetary value?

    A: No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits.

  • Q: Do PPP loans cover paid sick leave?

    A: Yes. PPP loans covers payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). Learn more about the Paid Sick Leave Refundable Credit here.

  • Q: Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of payroll costs?

    A: No. Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements.

  • Q: How large can the loan be?

    A: First Draw PPP Loans (subject to a $10 million cap) can be for up to 2.5x the applicant’s average monthly payroll costs from the previous year. Second Draw PPP Loans (subject to a $2 million cap) can be for up to 2.5x average monthly 2019 or 2020 payroll costs with some exceptions. For borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

  • Q: What is the interest rate?

    A: 1.00% fixed rate.

  • Q: When do customers need to start paying interest on their loan?

    A: All payments are deferred for 10 months from the point at which the forgiven amount is determined; however, interest will continue to accrue over this period.

  • Q: Can customers pay their loan earlier than the two- to five-year maturity date?

    A: Yes. There are no prepayment penalties or fees.

  • Q: Do customers need to pledge any collateral for these loans?

    A: No. No collateral is required.

  • Q: What additional criteria does the customer’s loan need to meet?

    A: As part of the application, borrowers need to certify in good faith that: 

    • Current economic uncertainty makes the loan necessary to support the ongoing operations of the Applicant
    • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments. Applicant understands that if the funds are used for unauthorized purposes, the federal government may pursue criminal fraud charges.
    • Documentation verifying the number of full-time equivalent employees on payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight-week period following this loan will be provided to the lender.
    • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 40% of the forgiven amount may be for non-payroll costs.
    • During the period beginning on February 15, 2020, and ending on December 31, 2020, the Applicant has not and will not receive another loan under this program.
    • Applicant further certifies that the information provided in this application and in all supporting documents and forms is true and accurate. Applicant realizes that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable by law.
    • Applicant acknowledges that the lender will calculate the eligible loan amount using the tax documents that the Applicant has submitted. Applicant affirms that these tax documents are identical to those submitted to the IRS. Applicant also understands, acknowledges, and agrees that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for compliance with SBA Loan Program Requirements and all SBA reviews.
    • Applicant acknowledges that the bank provided the forms and necessary information to complete the Paycheck Protection Program Application. By filing an application with the bank, the applicant further certifies that no agent (attorney, accountant, consultant, etc.) was utilized in the completion of the application. Applicant further acknowledges and agrees that the bank will not process any application or close any loans if an agent seeking payment for services has been utilized and that applicant will inform any persons consulted with regarding the application of this requirement.
  • Q: What do borrowers need to certify?

    A: As part of the application, borrowers need to certify in good faith that: Current economic uncertainty makes the loan necessary to support your ongoing operations. The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments. Borrowers have not and will not receive another loan under this program. Borrowers will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight to 24 weeks after getting this loan. Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities.

    Due to likely high subscription, it is anticipated that not more than 40% of the forgiven amount may be for non-payroll costs. All the information that the borrower provided in the application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law. Borrowers acknowledge that the lender will calculate the eligible loan amount using the tax documents they submitted. Borrowers affirm that the tax documents are identical to those they submitted to the IRS. And borrowers also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for compliance with SBA Loan Program Requirements and all SBA reviews.

  • Q: What tax documents should borrowers have on-hand to apply?

    A: Businesses will need to reference data from the following tax documents when completing a loan application related to the Paycheck Protection Program. Applicants should also be prepared to upload digital copies of these documents during the application process.

    • IRS Form 941 (4 quarters) or 944 (Annual)
    • IRS Form 1099s or 1096 (1099 income)
    • IRS Form 1040, Schedule C (sole proprietors)
    • IRS Form 1065 plus the K-1’s (partnerships)
    • Federal Tax Return Schedule C 
    • Federal Tax Return Schedule F
    • IRS Form 990

    Click for Printable List

To view the full FAQ sheet provided by the SBA, in consultation with the Department of the Treasury, click here.


More information can be found on the U.S. Chamber of Commerce Coronavirus Resources site with a Small Business Guide and Checklist.

 


IMPORTANT NOTICE: These FAQs are based on the provisions of the CARES Act as implemented and interpreted by the U.S. Small Business Administration (“SBA”) and the U.S. Treasury Department (“U.S. Treasury”) through interim and final regulations, FAQs, and regulatory guidance and interpretations. The SBA and U.S. Treasury continue to issue new regulations, FAQs and guidance that in some cases changes or conflicts with prior guidance. The eligibility of a PPP loan for forgiveness and the amount and timing of any forgiveness will be subject to and dependent on approval pursuant to the regulations, FAQs and guidance in effect at the time a request for forgiveness is processed and as a result, we cannot provide you any assurances regarding forgiveness of your loan until such approval is received and any review or audit by the SBA completed. The information provided herein is not intended to constitute legal advice. 

AGENT FEE ACKNOWLEDGEMENT:  At the time you submitted your PPP loan application with us, each borrower certified as follows:

You acknowledge that the bank provided the forms and necessary information to complete your Paycheck Protection Program Application. By filing an application with us, you further certify that no agent (attorney, accountant, consultant, etc.) was utilized in the completion of your application. You further acknowledge and agree that we will not process any application or close any loans if an agent seeking payment for services has been utilized and that you will inform any persons you have consulted with regarding your application of this requirement.

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