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Frequently Asked Questions About the PPP Process

Frequently Asked Questions About the PPP Process


PPP Resources:

Updates as of 3/4/2021

Central Pacific Bank is here to help you to navigate through the process of your Paycheck Protection Program loan. The following are broad topics that cover the PPP loan process, but please note that updates can occur daily. National PPP updates from the SBA can be found here

The SBA has provided updated FAQs to reflect changes made by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act enacted on December 27, 2020. The FAQs, found here, are in the process of being revised to reflect changes made by the Interim Final Rule on Revisions to Loan Amount Calculation and Eligibility posted on SBA’s website on March 3, 2021.

PPP Process FAQ


The SBA announced that it will accept First Draw and Second Draw PPP loan applications from larger banks like Central Pacific Bank beginning Tuesday, 1/19/21. CPB will notify business customers by email once our application portal is officially open.

PPP applications will only be accepted through our online portal; applications will not be available in branch or by phone. Completing your application digitally ensures that we’re able to submit it quickly to the SBA for approval.

You may wish to review SBA’s one-sheet PDFs with information about First Draw PPP and Second Draw PPP.


  • If you already have a PPP loan with us, you will be able to use the same login ID and password you received for your forgiveness application to access the online portal. Ensure you are able to login here with no issues.

If you have trouble logging in, contact us promptly at [email protected] or 808-544-6865.

  • If you don’t have an existing CPB business checking or business savings account, you’ll be required to open a business deposit account in the name of the borrowing entity before applying for a PPP loan with us. This will help us fund your approved PPP loan promptly. To open a CPB business deposit account, please review the new account checklist and visit a branch that is convenient for you. Find locations and hours here.
  • If you already have a CPB business deposit account in the name of the borrowing entity, you do not need to do not need to worry about this. 

  • Even if your first PPP loan was originated by another lender, you are welcome to apply for this next round of PPP with us.

No. There is no minimum loan amount.

The following entities affected by COVID-19 may be eligible:

  • Business entities (e.g., partnerships, corporations, LLCs)
  • Sole proprietors, independent contractors and self-employed individuals
  • 501(c)(3)
  • 501(c)(6)
  • 501(c)(19) Veterans organization
  • Tribal business, and
  • Housing cooperatives, destination marketing organizations, and eligible news organizations.

 

All must comply with size standards, eligibility criteria, and certain limitations.

See the Paycheck Protection Program
Borrower Application Form Revised January 8, 2021 (SBA Form 2483 (1/21)) for reference.
 


A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Was eligible for and previously received a PPP First Draw Loan;
  • Has or will use the full loan amount only for eligible expenses before the PPP Second Draw Loan is disbursed;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

 

We may require you to provide original documentation.

See the Paycheck Protection Program Second Draw Borrower Application Form (SBA Form 2483 -SD (1/21)) for reference.


Eligible borrowers that previously received a First Draw PPP Loan may apply for a Second Draw PPP Loan of up to $2 million with the same general loan terms as their First Draw PPP Loan.

For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x 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 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.  Businesses claiming the NAICS 72 benefit must have reported NAICS 72 as their business activity/NAICS code on their most recent IRS income tax return/filings. 


Here is what you need to know before you begin the First Draw PPP application process.

  • If you don’t have an existing CPB business checking or business savings account, you’ll be required to open a business deposit account in the name of the borrowing entity before applying for a PPP loan with us. This will help us fund your approved PPP loan promptly. To open a CPB business deposit account, please review the new account checklist and visit a branch that is convenient for you. Find locations and hours here.
    • If you already have a CPB business deposit account in the name of the borrowing entity, you do not need to do not need to worry about this. 
  • Even if your first PPP loan was originated by another lender, you are welcome to apply for this next round of PPP with us.

 As an additional resource, the SBA has issued a one-sheet PDF about First Draw PPP loans.


CPB customers who have a business deposit account in the name of the borrowing entity, and  did not previously receive a PPP loan are eligible to apply provided they meet the SBA’s requirements.

You may wish to review the SBA’s one-sheet PDF with information about First Draw PPP loans and How to Calculate PPP Loan Amounts.


Yes, CPB customers that received a PPP loan previously may apply for a second loan, regardless if they have applied for forgiveness. For eligibility information, refer to the SBA’s one-sheet PDF with information about Second Draw PPP.

Yes, even if your first PPP loan was originated by another lender, you are welcome to apply for this next round of PPP with us.

If you don’t already have a CPB business checking or business savings account in the name of the borrowing entity, you’ll be required to open one before applying for a PPP loan with us. This will help us fund your approved PPP loan promptly.

To open a CPB business deposit account, please review the new account checklist and visit a branch that is convenient for you. Find locations and hours here.


In addition to payroll costs, rent, mortgage interest and utilities, the new covered eligible expenses are certain operations expenditures, property damage costs, supplier costs, and worker protection expenditures. A detailed description of eligible expenses can be found in the full text of the Economic Aid Act here (page 48, Section B.11.a).

Yes, 501(c)(3), 501(c) (6), and 501(c)(19) Veterans Organizations are eligible. These non-profits are required to complete the Applicant Ownership section for SBA portal purposes. The entity must identify at least one person who will be a principal (and signer) for the PPP loan. The Applicant Ownership section should be completed with that person’s information. Ownership Percentage should be 100%. The Taxpayer Identification Number (TIN) will be person’s Social Security Number (SSN).

Yes, foreign entities are eligible. Businesses owned by a foreign entity must provide an Employer Identification Number (EIN). Foreign entities owned by a foreign individual must provide the individual’s SSN. If the individual does not have a SSN, an SBA number must be provided.


Note:  Loan amount will only be for the payroll amount for their employees who reside in the US.


Shortly after receiving your approval notification, you will receive an email to sign the loan agreement via DocuSign. Once we receive your signed agreement, your business account will be funded within a few days.

Regardless of whether you have filed a 2019 or 2020 tax return with the IRS, you must provide the 2019 or 2020 Form 1040 Schedule C with your PPP loan application to substantiate the applied-for PPP loan amount. Please see SBA Interim Final Rule from Jan 6, 2021 for more information.

Businesses may (subject to SBA rules) obtain both a PPP loan and an EIDL. If a PPP borrower received EIDL funds between January 31, 2020, and April 3, 2020, then the outstanding amount of those EIDL funds (“Outstanding EIDL Amount”) must be included in the PPP borrower’s application and added to the PPP borrower’s requested PPP loan amount if the EIDL was used for payroll costs; and, the Outstanding EIDL Amount must be paid by the Bank to the SBA from the PPP loan proceeds. EIDL funds received before January 31, 2020 or after April 3, 2020 do not need to be included in the PPP borrower’s application/loan.

If you need to cancel your PPP application, please email [email protected]

You may contact our PPP service team at [email protected] or 808-544-6865.

Additional Resources


Paycheck Protection Program from the US Treasury ▸

See information about "How to Calculate Maximum Loan Amounts - By Business Type" under the For Borrowers section of the US Treasury site.

Paycheck Protection Program from the US Small Business Administration ▸


SBA-Managed Relief Programs

The SBA has more programs available for eligible businesses that continue to struggle due to the pandemic. The agency is managing and disbursing funds for these programs. Customers can contact the SBA directly for information about applications and submissions.

Shuttered Venue Operations Grant (SVOG)


SBA application portal NOW OPEN

The SVOG program will provide $16 billion in economic relief to targeted industries including live venues, theaters, museums, and zoos. Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

  • Program details are hereand the SVOG application portal is open here.
  • To complete your application, use the checklistto make sure you have everything you need. Review resources at gov/svogrant such as the applicant user guide and FAQ. Keep these resources open throughout the application process.
  • SVOG videos about the program and eligibility requirements are on YouTube here.
  • SBA is administering and disbursing SVOG funds and can be contacted directly for more information.


Restaurant Revitalization Fund (RRF)

Restaurant Revitalization Fund Information Sheet 

SBA application portal NOW OPEN

The RRF program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Applicants should review RRF program details to prepare documentation, calculate potential grant amounts, and more.

  • Application process opened on Monday, May 3, 2021, at noon ET.
    • Eligible businesses were able to apply as soon as the application portal opened; however, the first 21 days of the application period will give priority to businesses that are at least 51% owned by one or more women, veterans, or socially and economically disadvantaged individuals. The rest of the applications will be considered thereafter until funds are exhausted.
  • SBA is administering and disbursing RRF funds and can be contacted directly for more information.


Increased EIDL Amounts


SBA contacting eligible businesses

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.

Supplemental Targeted Advance

 
SBA contacting eligible businesses

Supplemental Targeted Advance is a new round of Economic Injury Disaster Loan (EIDL) assistance that will provide $5 billion in additional assistance to 1 million eligible small businesses and nonprofit organizations severely affected by the economic effects of the pandemic.

These SBA grants will be open to small businesses even if they had already received $10,000 in its other grant programs, the EIDL Advance from March and April of 2020 or its successor program, the Targeted EIDL Advance, which was rolled out earlier this year.

Effective April 22, the SBA modified the Targeted EIDL Advance application process to determine if businesses also qualify for the additional $5,000 Supplemental Targeted Advance.

To be eligible for these new supplemental grants, businesses must be:

  • Located in a low-income community. Businesses can use this mapping tool here to see if they are eligible.
  • Able to prove 50% or more in economic losses during any eight-week period beginning on March 2, 2020 or later, compared to the same time in 2019. Applicants will need to provide monthly revenue from January 2019 to the current month.
  • 10 employees or fewer, the SBA said. Farmers and ranchers are not eligible for the supplemental grant.
  • SBA will contact eligible business entities to apply and applications will be processed on a first-comefirst-served basis.

For details about the Targeted EIDL Advance and Supplemental Targeted Advance program, visit SBA.gov/eidl. Eligible entities with questions about the new supplemental grants can email questions to the SBA at [email protected].

Disaster aid available for Oahu businesses affected by severe weather in March 2021

The SBA is offering low-interest federal disaster loans to Oahu businesses and residents that sustained severe weather damage between March 8 to 18, 2021.  

Businesses and private non-profit organizations may apply for up to $2 million in loans to repair or replace real estate, machinery and equipment, inventory and other business assets that were either destroyed or damaged in the storm.

Business owners and homeowners who have already made repairs to property damaged in last month’s storm, are also eligible for the loans. The SBA advises applicants to take photographs and keep receipts of repairs.

In addition, homeowners are eligible to borrow up to $200,000 to repair or replace destroyed or damaged real estate. Both homeowners and renters are eligible for a maximum of $40,000 personal property that was destroyed or damaged in the storm.

Interest rates can be as low as 3 percent for businesses, 2 percent for private non-profit organizations and 1.25 percent for homeowners and renters with terms up to 30 years.

  • For details and to apply, click here.
  • Deadline to apply for property damage: June 28, 2021
  • Deadline to apply for economic injury: Jan. 31, 2022
  • SBA is administering and disbursing the aid and can be contacted directly at the Virtual Business Recovery Center and Virtual Disaster Loan Outreach Center
    • Monday to Friday from 8 a.m. to 8 p.m. (EST)
    • By email at [email protected] or by phone at 800-659-2955



Disclosures

This communication is as of January 13, 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