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Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP)


Central Pacific Bank’s Paycheck Protection Program (PPP) loan portal is accepting applications for First Draw and Second Draw PPP loans.

The newly signed PPP Extension Act of 2021 has extended the Small Business Administration’s Paycheck Protection Program (PPP) application deadline to May 31 or whenever the current funding runs out, whichever is sooner. Additionally, the SBA will have until June 30 to process applications.


1040 Schedule C filers - Applications are Ready!

The SBA issued an interim final rule on March 3 that allows borrowers who file an IRS Form 1040 Schedule C to calculate their maximum loan amount using gross income.

  • To use the new calculation method; the applicant must use the new application form.
  • If you submitted the current application form to the platform and it has not yet been approved, you may request to withdraw the application by emailing ppp[email protected]. You must re-apply when our portal is ready to accept new applications with the new rule.

These revisions are not retroactive. Loans cannot be increased to take advantage of the new rule if your PPP loan was approved and funded.

  • If you have already received proceeds from your loan, the current rule does not allow you to increase the loan amount.

The interim final rule is available in full text here or find answers to frequently asked questions at cpb.bank/ppp-faq.

If you have questions about this change for Schedule C filers, contact us at [email protected] or 808-544-6865.



PPP Program 


Since the reopening of the PPP program, the SBA has approved nearly 900,000 PPP loans totaling $72.2 billion as of January 31, 2021, according to an SBA report released earlier this week.

The SBA’s PPP program coffer, which began at $284 billion, still has close to 74% or $211 billion remaining. SBA and Treasury Department officials believe the current $284 billion round of funding will be more than enough. The deadline to receive applications for the current PPP program is March 31, 2021 or whenever the current funding runs out, whichever is sooner.

Due to limited resources, Central Pacific Bank is focused on helping its existing small business clients gain access to PPP loans. To open a CPB business deposit account, please review the new account checklist and visit a branch that is convenient to you. Find locations and hours here

See required PPP loan documents for your business here.

This round of PPP funding was included in the Economic Aid Act signed on December 27, 2020. You can read the relief bill in full here. In turn, the SBA published a consolidated Interim Final Rule on January 6, 2021, relating to the PPP.

 

PPP Loan Application Deadline

The newly signed PPP Extension Act of 2021 has extended the Small Business Administration’s Paycheck Protection Program (PPP) application deadline from March 31 to May 31. Additionally, the SBA will have until June 30 to process applications.

Apply for a First Draw PPP Loan

If this is the first PPP loan for your business, you’re able to apply for a First Draw PPP Loan for up to 2.5 times the average monthly payroll costs incurred or paid during 2019 or the 12 months prior to the loan date, for a maximum of $10 million.

Need help how to calculate maximum loan amounts for First Draw PPP Loans and what documentation to provide? See Small Business Administration document guide to assist.

See how to start your PPP First Draw Loan application.

Apply for a Second Draw PPP Loan

If your business previously received a First Draw PPP Loan, you may apply for a Second Draw PPP Loan of up to $2 million with the same general loan terms as the First Draw PPP Loan.

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5 times average monthly 2019 or 2020 payroll costs up to $2 million.  For borrowers in the Accommodation and Food Services sector (NAICS 72), the maximum loan amount for a Second Draw PPP Loan is 3.5 times average monthly 2019 or 2020 payroll costs up to $2 million. 

Need help figuring out how to calculate maximum loan amounts for Second Draw PPP Loans and what documentation to provide? See Small Business Administration document guide to assist.

See How to Start Your PPP Second Draw Loan application.

Our commitment to supporting individuals with disabilities

Central Pacific Bank is committed to making our products and services accessible to meet the banking and financial services needs of all our customers. If you are unable to complete the application for PPP forgiveness on your own, visit your local branch or give us a call. A friendly CPB banker will be ready to assist you.

TTY/TDD (Hearing Impaired) Number: 808-532-4920
Visit a Branch: https://www.cpb.bank/locations

Who is eligible to apply for PPP with CPB?

To apply for a First Draw or Second Draw PPP loan with CPB, we are requiring applicants to have an existing CPB business checking or business savings account in the name of the borrowing entity.

Clients without a CPB checking or business savings account should review the new account checklist, then open an account at a branch convenient to you. Find locations and hours here.

PPP loans will be available to first-time qualified borrowers and, for the first time, to businesses that previously received a PPP loan. Specifically, previous PPP recipients may apply for another loan of up to $2 million, provided they:

  • Have 300 or fewer employees.
  • Have used or will use the full amount of their first PPP loan.
  • Can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.

PPP also makes the forgivable loans available to Sec. 501©(6) business leagues, such as chambers of commerce, visitors’ bureaus, etc., and “destination marketing organizations” (as defined in the act), provided they have 300 or fewer employees and do not receive more than 15% of receipts from lobbying. The lobbying activities must comprise no more than 15% of the organization’s total activities and have cost no more than $1 million during the most recent tax year that ended prior to Feb. 15, 2020.  

PPP will also permit first-time borrowers from the following groups:

  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
  • Sole proprietors, independent contractors, and eligible self-employed individuals.
  • Certain not-for-profits, including churches.
  • Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location.

The bill allows borrowers that returned all or part of a previous PPP loan to reapply for the maximum amount available to them.


New Relief Programs to Know

Shuttered Venue Operations Grant (SVOG) – SBA to administer and disburse funds.  Please contact the SBA directly for more information about applications and submissions.  

The SVOG program is scheduled to open on April 8, 2021 and will provide $16 billion in economic relief to targeted industries including live venues, theaters, museums, and zoos. Find program information here.

To prepare to apply, review these tips.

  • Webinar recording of the SBA-led SVOG application process covers documentation needed, a review of the application and more. View YouTube video.
  • Businesses can receive a PPP loan and an SVOG. The American Rescue Plan Act amended the SVOG program so entities that apply for a PPP loan after Dec. 27, 2020 can also apply for an SVOG, with the eligible entity’s SVOG to be reduced by the PPP loan amount. However, under the law, entities will be ineligible for a PPP loan after they receive an SVOG. More on relief programs.
  • Available SVOG tools. The SBA has everything you need to know including updated FAQs, video tutorials, an eligibility requirement chart and more here.


Restaurant Revitalization Fund (RRF)
– SBA to administer and disburse funds

The RRF program, which does not have a scheduled opening date yet, will offer $28.6 billion in grants to hard-hit restaurants and bars, with restaurants able to apply for grants based on lost revenue.  Continue watching for information on the SBA’s COVID-19 relief options web portal.

For frequent SBA updates, follow their Twitter account. On March 30, the SBA tweeted a welcome announcement that restaurant owners seeking to participate in the RRF program will not need to sign up for a System for Award Management (SAM) account or be required to have a DUNS number saving restauranteurs hours of time.


Increased EIDL Amounts

The SBA is increasing the maximum eligible amounts for Economic Injury Disaster Loans (EIDLs). Beginning April 6, recipients – including those who previously received an EIDL – can access up to $500,000. The previous limit was $150,000.

Businesses that previously received an EIDL are not required to submit a request for an increase, as the SBA is expected to reach out directly via email and provide more details about how businesses can request an increase.

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).


Stay Tuned

There are many important aspects of the new law that businesses need to understand, including payroll tax deferrals, Employee Retention Credit changes and more. We will issue additional updates on these topics as details of the new law becomes available.


Additional Resources

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.

CPB