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Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP)


PPP loan application portal is closed.

On May 4, the SBA announced the current round of PPP loan funding has been exhausted. Therefore, our PPP loan portal has been permanently closed and we are not accepting new PPP loan applications.

If you've already submitted an application, your application will continue to be processed until SBA funding runs out. We will contact customers if more information is needed. 

THE PPP LOAN FORGIVENESS PORTAL IS STILL AVAILABLE HERE

Loan Specifics

Maximum Loan Amount

All new PPP loans are limited to a maximum amount of $2 million. The basis for calculating the PPP loan amount is 2.5 times the average monthly payroll costs incurred or paid during 2019 or the 12 months prior to the loan date. For the accommodations and food service industry (NAICS 72), the multiple is 3.5 times instead of 2.5 times.

Simplified Loan Application Process for Loans up to $150,000

Entities requesting smaller loans will not be required to submit documentation supporting the decline in gross receipts. Rather, they will simply need to submit a certification attesting to the revenue loss to qualify. However, it is important to note that documentation to substantiate the revenue loss will be required to be submitted to the lender at or before the time of filing for forgiveness.

Other Significant Changes

Additional changes from the Act include:

  • The Economic Injury Disaster Loans (EIDL) advance amount will no longer be deducted from PPP forgiven loan amounts.
  • PPP borrowers are now eligible for Employee Retention Credits, providing the same wages are not used to calculate both the credit and forgiven loan amounts.
  • The covered period for all borrowers, including existing PPP loan borrowers, has been extended until March 31, 2021.
  • Expansion of eligible nonprofits to include certain 501©(6) and destination marketing organizations.

Understanding the PPP loan process

  • Once your application is submitted to the CPB loan portal, our PPP specialists review it for completion and accuracy.
  • If we find information that needs clarification or is missing, we will contact you to fill in the details.
  • Once your application is complete, it then gets sent to the SBA for approval.
  • SBA may request additional information prior to approving the loan
    • Common requests include:
      • Verification of TIN (EIN/SSN) mismatch
      • Verification of Entity Name
      • Verification of Business in Operation date
    • The SBA averages about two business days to approve loan requests.

A snapshot of the PPP funding process

  • After we receive approval from the SBA, we send a CPB email via DocuSign to let you know your loan documents are available for review and require your signature.
  • Once your signature is received, it takes about two business days to receive funding.
  • The funds are directly deposited into your preferred CPB business deposit account (checking or savings).

About the Original PPP Program

As part of the CARES act, the Federal Government authorized aid toward job retention and certain other expenses.

The Paycheck Protection Program (PPP) was created to provide rapid funding to small businesses in the form of a forgivable loan. 

All loans have the same terms, regardless of which lender you chose to work with.

Disclosures
This communication is as of February 4, 2021 and is intended to assist PPP applicants/borrowers in understanding and complying with the Paycheck Protection Program (“PPP”) laws, regulations, requirements and rules (collectively “PPP Rules”).  This is only a general description/summary of the matters covered herein. PPP applicants/borrowers should consult the PPP Rules for the complete coverage.  Central Pacific Bank (“CPB”) is not rendering any legal, tax, accounting, business or other advice to PPP applicants/borrowers in connection with the PPP which is a federal government program and subject at all times to the PPP Rules as they may be changed, amended or supplemented at any time by the federal government.  PPP applicants/borrowers are strongly encouraged to seek the advice of legal, tax, accounting, and other professional advisors respecting the PPP.  PPP applicants/borrowers are solely responsible for determining their eligibility for the PPP and compliance with all PPP Rules, and shall not rely on CPB or any employee or representative of CPB respecting the PPP Rules or any interpretation or application thereof. CPB has no obligation or responsibility to update this communication as additional PPP Rules are issued or if any PPP Rules are changed, amended or clarified.  PPP applicants/borrowers must monitor the government’s PPP websites at https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses and https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program for any updates to the PPP Rules.

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