SBA Relief Program & COVID-19 UPDATE

Over the last three months our local businesses and their employees have experienced a pandemic, economic hardship, isolation and uncertainty. Throughout this trying time Republic Bank has aided countless FANS through the approval and processing of thousands of Paycheck Protection Program loans valued at more than $700 million helping sole proprietors, small to mid-size businesses and their employees avoid economic ruin. As we prepare to open our businesses in accordance with state and local COVID-19 guidance it is time to prepare for the next phase of the Paycheck Protection Program, Loan Forgiveness.

PPP Loan Forgiveness Update

On Tuesday September 29th Republic Bank sent an email to all PPP loan customers, which provided an update on PPP Loan Forgiveness.  If you did not receive this email please review your spam and junk email folders.  This email contained important information explaining how Republic Bank will begin accepting and processing PPP Loan Forgiveness applications. 

All loan forgiveness applications must be submitted through a portal link; you will receive the portal link when Republic Bank is prepared to accept your forgiveness application.  This web based platform will assist in the completion of the Loan Forgiveness Application (SBA Form 3508S, 3508EZ and SBA Form 3508), calculation of your loan forgiveness amount, upload of required supporting documents, and automatic submission of your loan forgiveness request to the SBA after lender review.

Recent Changes to the Paycheck Protection Program

On October 8, 2020 the Small Business Administration and Treasury Department released a simpler loan forgiveness application (3508S) for PPP loans of $50,000 or less.  To be eligible to use this form a Borrower’s PPP loan must be no greater than $50,000 and all loans to a Borrower and its affiliates may not exceed $2,000,000.   

October 2, 2020 the Small Business Administration issued SBA Procedural Notice 5000-20057 concerning changes of ownership for an entity that has received a PPP loan. If your business received a PPP loan and you are contemplating an ownership change of any nature, please review the Procedural Notice for guidance.  

June 5, 2020 the PPP Flexibility Act of 2020 extended the deferral period for all borrower payments of principal, interest and fees on all PPP loans. The Act does not require a PPP lender to modify a current PPP loan for this payment deferral to be effective. The new payment schedule is based on the date the SBA remits the borrower’s loan forgiveness amount  to the lender; or, if the borrower does not apply for loan forgiveness, payments must begin 10 months after the end of the borrower’s loan forgiveness covered period.  Previously, the deferral period ended 6 months after loan disbursement.

To prepare for your loan forgiveness submission you should begin the following tasks:

• Familiarize yourself with the CARES Act and subsequent changes: Links to important documents can be found at MyRepublicBank.com. Seek professional advice from accountants or attorneys if necessary.
• Determine your covered period; new guidance is available permitting the covered period to be 8 weeks or 24 weeks.
• Track expenditures on eligible expenses (payroll, rent, utilities, mortgage interest)
• Gather supporting documents (invoices, canceled checks, payroll documents, leases, bank statements, mortgage statements, utility bills, etc.) Ensure the documents match the covered period. Reference documents must be signed and executed (leases).
• Calculate Full Time Equivalent Employee factors for the covered period and reference period.
• Visit the Republic Bank website and our SBA Relief Web Page for up to date information, to view PPP tools, and the opening of our automated, end to end system portal to accept your application for loan forgiveness.

In addition, we are still making commercial, consumer and residential mortgage loans and soon, loans under the Federal Reserve Main Street Lending Program, details to follow, check the Republic Bank website.

Republic Bank is proud to be your Bank and of our PPP support to existing and new FANS. At Republic Bank, service matters. If you have questions please reach out to your Relationship Manager or send us an email at PPPLoanForgiveness@MyRepublicBank.com.

 

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DOWNLOADS & LINKS

• SBA PPP Loan Forgiveness Overview - Getting Started 
• SBA Form 3508S PPP Forgiveness Application / Instructions
• SBA Form 3508EZ PPP Forgiveness Application / Instructions
• SBA Form 3508 PPP Forgiveness Application / Instructions 
• SBA PPP – Revisions to First IFR – PPP Flexibility Act
• SBA Loan Review Procedures and Related Borrower and Lender Responsibilities
• SBA PPP Requirements – Loan Forgiveness
• SBA PPP – Revisions To The Third and Sixth Interim Final Rule
• SBA PPP – Revisions To Loan Forgiveness and Lender Review 
• HR 7010 PPP Flexibility Act
• SBA Website
• The Treasury Department Website
• Loan Forgiveness Frequently Asked Questions
• SBA Procedural Notice 5000-20057 Ownership Change
• Republic Bank PPP Loan Forgiveness Email

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