SBA - Paycheck Protection Program

 

 

Paycheck Protection Program

The information contained in this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program, including guidance issued by the U.S. Small Business Administration (SBA) on June 26, 2020. We will periodically update this information, so please check back often. You may even want to consider bookmarking this page.

On June 5, 2020, the “Paycheck Protection Program Flexibility Act” (Flexibility Act) was passed and makes various changes to the PPP. The Flexibility Act aims to provide small businesses with more time to spend loan funds and qualify for loan forgiveness.

In the event of any discrepancies between the information on this site and the SBA’s site, please follow official SBA guidance.

LATEST UPDATE:

October 16, 2020

    • The Small Business Administration released a much-anticipated, streamlined PPP Loan Forgiveness Application Form for Paycheck Protection Program loans totaling $50,000 or less. Here are the instructions supplied by the SBA:
      • “You (the Borrower) can apply for forgiveness of your Paycheck Protection Program (PPP) loan using this SBA Form 3508S only if the total PPP loan amount you received from your Lender was $50,000 or less. However, a borrower that, together with its affiliates (see 85 FR 20817 (April 15, 2020) regarding application of SBA’s affiliation rules and the exemption of otherwise qualified faith-based organizations from SBA’s affiliation rules), received PPP loans totaling $2 million or more cannot use this form. If you are not eligible to use this form, you must apply for forgiveness of your PPP loan using SBA Form 3508 or 3508EZ (or lender’s equivalent form).

        SBA Form 3508S requires fewer calculations and less documentation for eligible borrowers. Borrowers that use SBA Form 3508S are exempt from reductions in loan forgiveness amounts based on reductions in full-time equivalent (FTE) employees or in salaries or wages. SBA Form 3508S also does not require borrowers to show the calculations used to determine their loan forgiveness amount. However, SBA may request information and documents to review those calculations as part of its loan review process.

        Complete this SBA Form 3508S in accordance with the instructions below, and submit it to your Lender.”
  • According to the Interim Final Rule published 10/08/2020, When a borrower submits SBA Form 3508S or lender’s equivalent form, the lender shall:
    • Confirm receipt of the borrower certifications contained in the SBA Form 3508S or lender’s equivalent form.
    • Confirm receipt of the documentation the borrower must submit to aid in verifying payroll and nonpayroll costs, as specified in the instructions to the SBA Form 3508S or lender’s equivalent form.

“Providing an accurate calculation of the loan forgiveness amount is the responsibility of the borrower, and the borrower attests to the accuracy of its reported information and calculations on the Loan Forgiveness Application.”

Download Application Form 3508S     Download Instructions for Form 3508S

 

Additional Information

Application Process

Only Crest Savings Bank's business customers with a deposit or lending relationship as of March 1, 2020 will be eligible to apply through us. Please note this loan will be processed and a decision will be made by SBA. Crest Savings Bank is only a gateway to facilitate your request. Although we may receive additional guidance from the SBA, our current understanding of the program is below.

The most efficient application process is completely electronic. Given the significant volume of loan applications, it is important that you complete your application accurately with the required documents. Inaccurate and/or incomplete documentation will impact how quickly we can process the application. Please note that customers should NOT go to the Branches as they will not be able to assist with the Payment Protection Program application process.

  • Applications will be accepted through Midnight of July 31, 2020 to allow Crest to process and submit the loan to SBA prior to expiration date of August 8, 2020.
    Reminders.
  • This is for new loans only. Increases to existing PPP Loans are not eligible.
  • Borrowers are eligible to obtain one (1) PPP loan.

Required Documentation

To begin the PPP loan application process, please complete and send the following required documentation to support certification that, as of or around February 15, 2020,

  • you had employees for whom you paid salaries and payroll taxes (or paid independent contractors), OR 
  • you are an independent contractor.

Please note, for seasonal businesses, we will consider whether a seasonal borrower was in operation 

  • on February 15, 2020 OR
  • for an 8-week period between February 15, 2019 and June 30, 2019.

Email all documentation to ppp@crestsavings.com. 

Due to overwhelming demand from the SBA, an application submitted to Crest Savings Bank does not guarantee you will receive a PPP loan.

  • A completed application
  • Please specify period used and include required documentation based on type of business in your reply:
    • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports;
      • 1099s for independent contractors; OR
      • For sole proprietors, Payroll processor records, Payroll tax filings, Schedule C, Other income and expense documents if none of the above is available for the last 12 months or for 2019. The documentation provided must be from the year ended 2019 or from the last 12 months; 2018 Schedule Cs cannot be used; if you have not done your 2019 tax returns, you will need to provide an internal income statement for us to document income.
    • Payroll reports for a consecutive twelve-month period, which will show the following information:
      • Gross wages for each employee, including officer(s) if paid W-2 wages.
      • Paid time off for each employee
      • Vacation pay for each employee.
      • Family medical leave pay for each employee.
      • State and local taxes assessed on an employee’s compensation.
      • Seasonal employers may determine their maximum loan amount for purposes of the PPP by choosing the average total monthly payments for the 12-week period beginning February 15, 2019, or at the election of the eligible borrower, March 1, 2019, and ending June 30, 2019 OR may alternatively elect to determine their maximum loan amount as the average total monthly payments for payroll during any consecutive 12-week period between May 1, 2019 and September 15, 2019.
    • Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan.
       Include all employees and the company owners.
    • Document the sum of all retirement plan funding that was paid by the company owner(s) (does not include funding that came from the employees out of their paycheck deferrals).
        • Include all employees, including company owners.
        • Include 401K plans, Simple IRA, SEP IRAs.

       

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