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Supporting Small Business Clients During Coronavirus

COVID Wellness and Support:

SBA Paycheck Protection Program (PPP)

Fifth Third will beigin submitting PPP loan applications to the SBA beginning Tuesday, January 19.
The Small Business Administration (SBA) has announced it will open the Paycheck Protection Program (PPP) on Tuesday, January 19th to remaining banks with assets greater than $1B. We are here to help you now and throughout the application process.

 

Businesses that typically work with a relationship manager.

 

Please contact your relationship manager.

Businesses that work primarily with a branch or call center.

Schedule a phone appointment with one of our bankers.

  • Log in to online banking at 53.com.
  • Using the Paycheck Protection Program section, schedule a phone appointment with a local branch to begin your application; Or

Call 877-887-0273 (Monday through Friday, 8 a.m. to 6 p.m., ET) to speak with a representative. We expect a high volume of calls during this time. Thank you for your patience.

 

 

1/11/2021

In late December, Congress passed a stimulus package expanding on the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act. This $900 billion stimulus package allocated $284 billion specifically to help businesses across the country.

On January 8, 2021 the Small Business Administration (SBA), in partnership with the Treasury Department, announced that the Paycheck Protection Program (PPP) will reopen the week of January 11 for new PPP borrowers and certain existing PPP borrowers. In an effort to address potential barriers to access to capital for minority, underserved, veteran, and women-owned businesses, they will open the portal on Monday, January 11 to only community financial institutions (CFI) for First Draw PPP Loans and on Wednesday, January 13 for Second Draw PPP Loans. (CFIs include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs) and Microloan Intermediaries.)

Although Fifth Third Bank does not meet the SBA’s definition of a CFI, we are committed to helping all of our clients prepare and receive the help they need as quickly as possible. After the SBA reopens the portal to remaining lenders, Fifth Third will begin accepting applications.

You may be eligible for a SBA Paycheck Protection Program loan+ under the new federal law designed to provide small businesses quick access to capital for payroll and other overhead costs.

Here’s what you need to know about the program, which is being continued as part of the Consolidated Appropriations Act, 2021. This is based on the latest information from the Small Business Administration and the Treasury Department. Other eligibility requirements may apply.

First Time PPP Borrowers

Max Loan Amount & Term

 

  • Up to $10,000,000
  • Max 5-year term
Loan amount is based on payroll expenses

 

Loan Uses

 

  • Payroll costs
  • Mortgage interest / lease payments
  • Utilities
  • Interest on other pre-existing debt
  • Additional categories-covered operating expenditures, property damage, supplier costs, worker protective equipment

 

Forgiveness Available

Yes, if borrower completes any applicable forgiveness application and retains/ provides any required documentation.

  • At least 60% of funds must be used for payroll costs.

 

Borrower Application

 

Existing PPP Borrowers

Max Loan Amount & Term

 

  • Up to $2,000,000
  • Max 5-year term
Loan amount is based on payroll expenses

 

Loan Uses

 

  • Payroll costs
  • Mortgage interest / lease payments
  • Utilities
  • Interest on other pre-existing debt
  • Additional categories-covered operating expenditures, property damage, supplier costs, worker protective equipment

 

Forgiveness Available

Yes, if borrower completes any applicable forgiveness application and retains/ provides any required documentation.

  • At least 60% of funds must be used for payroll costs.

 

Additional Requirements

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses.
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

 

Borrower Application

 

In order to apply, you will need the following information:

  • Number of employees.
  • Business mailing address.
  • Email addresses for the primary signer and / or owners that make up 20% ownership of the organization.
  • Financial records for your business to calculate the average monthly payroll for 2019, 2020 or the 12-month period prior to application, such as payroll processor records, payroll tax filings, IRS Schedules C or F, bank records, or income and expenses from a sole proprietorship.  If the borrower does not have such records, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.
  • If the borrower is applying for a second draw PPP loan, documentation to support at least a 25% reduction in gross receipts in any quarter of 2020 as compared to the same quarter of 2019 (certain exceptions apply).

Loan forgiveness eligibility

If funds are used for certain qualifying costs, such as payroll, rent and utilities,  mortgage interest, and other eligible expenses up to 24 weeks following the date the loan is made, the borrower may be eligible to have all or a portion the loan principal forgiven.

The SBA has issued guidance regarding the necessary applications and documentation for loan forgiveness, and we anticipate the SBA will issue additional guidance on these topics. 

For more information on loan forgiveness eligibility click here.

Additional information and updates can also be found by visiting SBA.gov/PPP or Treasury.gov/CARES

Should you have any questions, please contact your banker.

These times may be unprecedented, but our commitment to serving our customers’ banking needs remains the same as it has since 1858.

As always, thank you for choosing Fifth Third Bank, National Association.

How the Small Business Administration1 is Helping Small Businesses

The SBA direct lending program is in the form of low interest rate loans with flexible repayment terms, the eligibility for which will be determined by the SBA on a case-by-case basis.

SBA Disaster Assistance overview:

  • Loans up to $2,000,000.
  • 3.75% fixed interest rate on loans to for-profit companies.
  • 2.75% fixed interest rate on loans to non-profit companies.
  • Up to 30-year term and amortization (determined on case-by-case basis).

How to apply for the SBA Disaster Assistance:

Additional Resources for Businesses

Fifth Third is committed to helping its communities through our extensive network of partners. Together, we are able to help small businesses and boost economic development in underserved communities throughout our footprint.

In January of 2016, Fifth Third began delivering on its five year community commitment of $32B; $11B of which was earmarked for small businesses. To date, we have funded $8B in programs that facilitate the growth of local businesses. Through our partnerships with Community Development Financial Institutions (CDFIs) and other nonprofit organizations, we continue to deliver a wide range of resources geared towards educating entrepreneurs and families on the innovative ways that they can access traditional forms of capital such as micro lending and small dollars loans through the Small Business Administration.

Fifth Third believes small businesses are the heart of our communities. We encourage you to reach out to the nonprofit organizations in your area for assistance. Together, we can connect you to resources you need to start, grow and sustain your business operations.

To find out more about the small business resources and programs in your area, please review them here.

Also, a list of available personal state assistance programs can be reviewed here.

Tips to Help You and Your Business Operation During COVID-19

Be Transparent About Your Business

Let your customers know you are going through this with them. For example, share on your business’s social media account(s) how much you appreciate your customers, and thank them each day as they continue to support your business.

Be Extra Vigilant Online

During times of uncertainty, it’s natural to seek information and answers through the internet and social media. Unfortunately, criminals will often use that to their advantage. While not specific to Fifth Third, our team has noted the occurrence of phishing—when a data thief impersonates a legitimate person or company via email to bait the recipient into reporting confidential information or gaining unauthorized access to systems. In addition, we have seen reports of malware (malicious software) disguised as a coronavirus map. Watch for email senders using suspicious or misleading domain names. Inspect URLs carefully (without clicking on the link) to make sure they’re legitimate and not imposter sites.

Follow Credible Advice

To obtain reliable information, stick to credible resources like the Centers for Disease Control (www.cdc.gov), National Institutes of Health (www.nih.gov), World Health Organization (www.who.int) and other well-known local and national news reporting agencies.

Use Digital Tools When You Can

Make an appointment to talk to your banker when you have a complex situation. But save time and use online banking services as often as you can. For example, consider depositing checks through your Fifth Third mobile app2.

As always, thank you for choosing Fifth Third.