Small Business or Commercial Loan Payment Assistance

Paycheck protection program 

About the New Paycheck Protection Loan Program (PPP Loans)

The Paycheck Protection Program (PPP) was designed to help small businesses keep their workers on the payroll and cover expenses such as employee benefits, mortgage interest, lease payments, and utilities over a period of 8- to 24-weeks while facing the current economic uncertainty. Businesses that experienced a temporary loss of revenue due to COVID-19 are eligible for the program and may be eligible for a second draw under the PPP Program.

The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law on March 27, 2020 and introduced the new SBA loan program, PPP. This economic relief program provided access to capital for businesses negatively impacted by the COVID-19.   These loans are originated through SBA 7(a) lenders like Capitol Federal.

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “Economic Aid Act”) became law. The Economic Aid Act provides additional access to PPP loans through March 31, 2021 and revised certain PPP requirements, including borrower eligibility, lender eligibility, the PPP application (s) and origination requirements for new PPP loans (first draw), as well as provides general rules relating to previous loan increases (pending additional guidance), origination requirements for second draw PPP loans and loan forgiveness and includes information regarding assisting minority, underserved, Veteran and women-owned businesses.

Each of the PPP loan programs have specific eligibility requirements. Please review the SBA publications to understand these requirements and the obligations of the borrower.

Paycheck Protection Program First Draw Loans Overview

Paycheck Protection Program Second Draw Loans Overview

First Draw Loan Application - PPP

Second Draw Loan Application - PPP

Round One and Two Paycheck Protection Loan Forgiveness Process (PPP Loans)

What will your forgiveness process look like?

Below is a summary of the process.
  • You will complete, initial and sign a forgiveness application, and submit that application with all required documentation to the bank.
  • Once we receive the complete application and documentation, we have 60 days to review and make a forgiveness determination.
  • If you used the streamlined 3508S form, the forgiveness determination is immediate.
  • If you used the simplified 3508EZ form or the standard 3508 form, we may use up to the full 60 days allowed.
  • If we determine that there is missing documentation or additional information required from you, the 60‐day clock starts over from the point you provide the additional documentation or information.
  • Once we make a determination, we will notify the SBA. The SBA then has 90 days to review and make a final determination.
  • Once the SBA makes a final determination, we will notify you of the result. If some or all of the loan was forgiven, the SBA will provide funds to the bank to pay down or pay off your loan.
  • If you do not agree with the SBA’s final decision, you have the option to appeal that decision.
  • The appeal must be made within 30 days of (i) receipt of the final SBA loan review decision or (ii) notification by us of the final SBA loan review decision, whichever is earlier. For more information about the appeal process, please review the guidance issued by SBA, including the August 25, 2020, Interim Final Rule.

SBA Updates PPP FAQs to Address Payment Deferral Extension

  • The SBA and Treasury Department updated the PPP FAQs to address the deferral period extension granted by the PPP Flexibility Act of 2020.
  • The extension allows borrowers to defer payments of principal, interest and fees on PPP loans for 10 months.
  • In the FAQ, SBA and Treasury confirmed that the extension of the deferral period automatically applies to all PPP loans, and said that lenders should immediately notify borrowers of the change in the deferral period.
  • Importantly, the FAQs note that “SBA does not require a formal modification to the promissory note,” and that “a modification of a promissory note to reflect the required statutory deferral period under the Flexibility Act will have no effect on the SBA’s guarantee of a PPP loan.”
  • Additionally, SBA informed all lenders in a letter on Tuesday that it has begun remitting PPP loan forgiveness payments.

Forgiveness Forms

Download Form 3508S applies to borrowers who have PPP loans under $50,000.00.

PPP Loan Forgiveness Application Form 3508S Instructions 

Form 3508EZ applies to borrowers who meet any one of these three criteria:
  • Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
  • Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
  • Did not reduce salary or wages for any employee by more than 25% and experienced reductions in business activity as a result of specific health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. Please review the application early to determine whether you qualify for the streamlined forgiveness; while we have generally described the criteria the application includes more details which may impact your ability to use this process.

Form 3508 applies to all borrowers who do not qualify to use the 3508S or the 3508EZ  forms.   For more information on SBA Coronavirus relief options go to:

Again, this law will likely be subject to additional guidance by SBA and Treasury. Small-business borrowers should have a firm understanding of the provisions above and any related guidance to ensure they meet the criteria for loan forgiveness. It is your obligation to stay informed of the latest guidance related to the Paycheck Protection Program at the SBAU.S. Treasury Assistance for Small Business and U.S. Treasury FAQ website.

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