SBA Paycheck Protection Program Update

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).

PPP Loan Forgiveness Applications are on Temporary Hold

Along with a number of other lenders, Fifth Third Bank will be putting a temporary hold on PPP loan forgiveness applications starting Monday, February 1, 2021. The forgiveness applications are being paused while the SBA updates its portal in preparation for accepting forgiveness applications under its new requirements.

What this means for you

  • If you have a PPP loan forgiveness application in process: We will continue to process forgiveness applications submitted prior to February 1, 2021.
  • If you plan to apply for forgiveness but haven't yet: Please wait to submit your forgiveness application until the SBA can handle the new submissions. This will help avoid confusion and should save time in the long run.
    We expect to have more details during the first week of February and will be sharing more information as we get it.

Why the hold on new forgiveness applications?

The SBA recently released revised its PPP loan forgiveness applications—SBA Form 3508, Form 3508EZ and Form 3508S. Form 3508S, in particular is the much-anticipated forgiveness application for loans of $150,000 or less. The SBA also released new overall guidance on loan review and forgiveness. All of this new information requires that the SBA update its portal for processing forgiveness applications.

As always, thank you for choosing Fifth Third.