Paycheck Protection Program

It’s your business. We just help.

We understand the economic impact the COVID-19 pandemic has had on businesses. At CIBM Bank, we are working quickly to facilitate your participation in recently enacted federal relief programs designed to help keep valued community businesses operating.

If you are simply looking for a place to start, please complete the form linked here and one of our team members will reach out to you. For more information prior to getting started please read below.

On April 2, 2020 the Small Business Administration (SBA) released final details regarding the Paycheck Protection Program application process. The release, titled the interim final rule can be found below.

The Paycheck Protection Program (“PPP”) originally authorized up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. Those funds were exhausted on April 16, 2020.

On April 24, 2020 an additional $310 billion was allocated to the program. The SBA provided additional guidance that states “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Based upon this new guidance, we now know that SBA may request further evidence from borrowers to substantiate this certification.

Who can apply?

Please refer to the interim guidance for a complete listing.

All businesses – including nonprofits, veterans 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.

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries; or (2) that are franchises in the SBA’s Franchise Directory; or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.

What qualifies as “payroll costs?”

(Excerpts from page 10)

Payroll costs consist of compensation to employees in the form of:

What is expressly excluded from the definition of payroll costs?

(Excerpts from pages 10-11)

Documentation Required (Subject to change as the interim final rule lacks clarification on certain issues)
  1. Application – linked below (note: “number of employees” is equal to full time equivalent employees (“FTEs”)).
  2. Borrowers must submit such documentation as is necessary to establish eligibility such as payroll processor records, payroll tax filings, or Form 1099-MISC, or income and expenses from a sole proprietorship. (example - Quarterly IRS 941’s for 2019)
  3. Detailed individual employee payroll report from on or around 2/15/2020
  4. Invoices for health insurance premiums paid for by employer
  5. Invoices for retirement plan administration
  6. Documentation of state and local taxes assessed on compensation of employees
Loan Details
  1. Loan Amount = 2.5x the average monthly payroll expense from 2019 (less foreign employees or any compensation to individual employees over $100,000)
  2. Payment Deferral for 6 months
  3. After 8 weeks the borrower can apply for loan forgiveness
  4. Interest rate: 1%.

Any unforgiven portion of the loan must be repaid no later than 24 months after the loan date. Payments will be made over a period of 18 months, beginning 6 months after the loan date.

Loan Forgiveness

It is critical for the borrower to fully understand the rules and timing associated with the loan forgiveness requirements including:

We are awaiting further guidance on loan forgiveness from the SBA.

Where can I apply?

The initial $349 billion allocation for this PPP program was exhausted quickly. The demand is expected to be just as great for the additional $320 billion in funding, and the timing of the exhaustion of the funds is unknown. We are here to help and will be working diligently to process these applications. We encourage businesses to act quickly.

Disclaimer

The information contained herein is based on guidance issued by the Small Business Administration and US Treasury Department. The information is subject to change by agency action, additional legislation and/or final rulemaking, including modifications to eligibility standards. Loan forgiveness is subject to various terms, conditions, and eligibility criteria. CIBM Bank cannot provide borrowers legal or accounting advice. Borrowers are instructed to consult their professional advisors prior to making any applications.

Paycheck Protection Program Application

Notice to PPP Applicants: By submitting this PPP Loan Application, you understand that: All loans are subject to PPP loan program terms, conditions, and eligibility requirements, and loan approval by the SBA. As the applicant, you are responsible for the accuracy and completeness of all information. The application must be completed in full, signed, and accompanied by all required documents, before CIBM Bank will submit it to the SBA. A loan is not approved until the SBA has issued its approval and confirmation. CIBM Bank is not responsible for errors or omissions made by you. CIBM Bank has no control over the time or order in which the SBA will review loan applications. CIBM Bank is not responsible for delays in processing resulting from high volumes of applications or the submission of applications that do not include required documentation. CIBM Bank cannot guarantee forgiveness of any portion of your loan, or your eligibility for any loan program.