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The Paycheck Protection Program for business owners

An important update

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As of June 30, 2020, the Small Business Administration (SBA) is no longer accepting Paycheck Protection Program (PPP) loan applications.

For clients who received a PPP loan from the SBA through Bank of America, we look forward to supporting you as you begin the loan forgiveness phase of the program.  We will begin opening our online loan forgiveness application in early August and will be emailing you with additional instructions on how and when to apply.

For up-to-date rules for the SBA’s PPP loan forgiveness process, including your covered period, the types of costs that are eligible for forgiveness, and what documentation you will need to submit as part of your application, please visit the SBA website

FREQUENTLY ASKED QUESTIONS

General

What is the Paycheck Protection Program (PPP)?
The Paycheck Protection Program is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow. For more information on the Paycheck Protection Program, please visit the U.S. Treasury and SBA websites.

What changes has the SBA made to the PPP rules and how does that impact the loan forgiveness process? 

  • You now have a 24-week “covered period,” the period in which you must spend the PPP loan proceeds for full loan forgiveness, starting on the date the funds were disbursed. If your PPP loan was funded prior to June 5, 2020, you still have the option to use the original 8-week covered period.
  • You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
  • You can use up to 40% of funds for eligible non-payroll costs, up from 25%

You can find up-to-date information on the rules of the program on the SBA website.

Application

Is there a deadline to apply?
As of June 30, 2020, the Small Business Administration (SBA) is no longer accepting Paycheck Protection Program (PPP) loan applications.

For clients who received a PPP loan from the SBA through Bank of America, we look forward to supporting you as you begin the loan forgiveness phase of the program.  We will begin opening our online loan forgiveness application in early August and will be emailing you with additional instructions on how and when to apply. 

For up-to-date rules for the SBA’s PPP loan forgiveness process, including your covered period, the types of costs that are eligible for forgiveness, and what documentation you will need to submit as part of your application, please visit the SBA website

Will Bank of America pay fees to third-party agents who have assisted clients with the preparation of PPP loan applications?
In the absence of a pre-loan approval written agreement between the agent and Bank of America, Bank of America does not pay fees or other compensation to agents who represent or assist borrowers through the Paycheck Protection Program. 

Post-submission

Please take into account:

As of June 30, 2020, the Small Business Administration (SBA) is no longer accepting Paycheck Protection Program (PPP) loan applications.

For clients who received a PPP loan from the SBA through Bank of America, we look forward to supporting you as you begin the loan forgiveness phase of the program.  We will begin opening our online loan forgiveness application in early August and will be emailing you with additional instructions on how and when to apply.

For up-to-date rules for the SBA’s PPP loan forgiveness process, including your covered period, the types of costs that are eligible for forgiveness, and what documentation you will need to submit as part of your application, please visit the SBA website

Loan forgiveness

When can I apply for loan forgiveness?
We will begin opening our online loan forgiveness application in early August and will be emailing you with additional instructions on how and when to apply. You can also expect your Bank Representative to be in touch with you to help you through this process.

How long do I have to apply for loan forgiveness? 
The timeframe for applying for loan forgiveness in your promissory note no longer applies. You now have more time to gather your documents and prepare your application. 

Based on the latest guidance from the SBA, you may submit a loan forgiveness application any time on or before the maturity date of your loan. We will notify you by email of any changes to your loan forgiveness application window.

Which PPP loan forgiveness application should I use?
In an effort to make it easier for some businesses to apply for PPP loan forgiveness, the SBA published a new PPP EZ Loan Forgiveness Application Form 3508EZ for borrowers that meet certain requirements. To determine if you are able to use the EZ application, you should review the Checklist for Using SBA Form 3508EZ on the SBA’s website. 

Borrowers that do not meet the requirements for using Form 3508EZ will apply using the updated PPP Loan Forgiveness Application Form 3508.

How can I prepare to apply for loan forgiveness?
Once you determine which SBA Loan Forgiveness Application Form you will use, we recommend that, prior to applying online through Bank of America for PPP loan forgiveness, you carefully review and fill out the applicable form, and gather the required documentation specified in the instructions: 

Where should I go if I have questions?
For detailed information on the application, covered periods, the types of costs that are eligible for forgiveness, and what documentation you will need to submit in connection with your application, please visit the SBA website

For questions related to PPP, please contact your bank representative. 

Bank of America is committed to supporting you and all of our clients during this challenging period.

Important Note: The Small Business Administration and the Department of Treasury continue to provide additional guidance concerning the Paycheck Protection Program. Thus, Bank of America makes no representation that information contained herein is up-to-date or complete. Before submitting a request for loan forgiveness, borrowers may wish to visit the SBA, U.S. Treasury Assistance for Small Businesses, and U.S. Treasury FAQ websites for the latest information and guidance related to the Paycheck Protection Program. 

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