The SBA Paycheck Protection Program (“PPP”) ended for all lenders May 31, 2021. Visit SBA.gov for additional details.
Due to high interest in the PPP loan program, we are currently experiencing elevated call and email volumes. From additional funding, new options for second-draw loans, a simplified forgiveness process and changes to EIDL advance deductions, a lot of changes were made to the PPP program. To help, we created an overview that will answer many of your questions specifically focused on the new legislation. You can also learn more about PPP loan forgiveness here.
Once the application period opens, PPP loans are available to the following:
PPP loan funds must be spent on at least 60% of a borrower’s payroll expenses, with the remaining 40% eligible for expenses like rent, covered mortgage interest, and utilities. The following expenses may also potentially be forgivable in the current 2021 program:
Most PPP loan borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs. Borrowers considered a hotel or restaurant may receive up to 3.5 times their average monthly payroll costs on second draw loans.
Regardless of the type of borrower, the maximum amount of a second draw PPP loan is $2 million, first loans are still available up to the $10 million maximum from 2020.
As part of the latest round of 2021 PPP funding, a simplified forgiveness application process for loans of $150,000 or less will be available. Specifically, those who borrow $150,000 or less shall receive forgiveness if they sign and submit, to the lender, a certification no more than one page in length that includes:
Additional guidance and a new Forgiveness application is expected for these loans.
Eligibility for full PPP loan forgiveness is contingent on whether borrowers will have spent no less than 60% of the funds on payroll over a covered period of either eight or 24 weeks.
More information about our PPP efforts, including application details will be added to this page as they become available. You can also reach out to our PPP team at SBACARES@UmpquaBank.com if you have questions and/or would like to learn more about how we can help.
The Paycheck Protection Program (PPP) is a federal loan program aimed at helping small businesses who have been impacted by COVID-19 retain their workforce. The following includes comprehensive information from the original program, as well as subsequent legislation passed by congress. Customers should also visit the U.S. Treasury website for additional resources and information.
Available for businesses “substantially affected by COVID-19,” interpreted as:
Businesses (includes sole proprietorships, 501(c)(3) nonprofit organizations, 501(c)(6) business associations, 501(c)(19) veterans’ organizations, and 31(b)(2)(C) tribal business) with 500 or less employees, whose principal place of residence is in the United States, in operation on February 15, 2020. Certain businesses with over 500 employees may qualify if they meet SBA industry size standards. Business with affiliations may also qualify and should review SBA guidance to determine eligibility.
To be eligible for second draw loans, businesses must have 300 or fewer employees and demonstrate at least a 25% revenue decline.
Maximum loan amount up to $10,000,000, for an initial loan.
Second draw loans max out at $2,000,000.
Funds may be used for:
Loan payments can be deferred for 10 months after the end of the covered period or until a decision on forgiveness is rendered (whichever comes earlier).
Generally, the maximum loan amount will be 2.5 times monthly payroll (250% of average monthly payroll) plus the outstanding EIDL loan amount (not to exceed $10,000,000). Businesses in the hotel and restaurant industry may be eligible for up to 3.5 times monthly payroll (350% of average monthly payroll).
Businesses that received EIDL (Economic Injury Disaster Loans) between February 15, 2020 and April 3, 2020, have the option to refinance these loans under the parameters of the Paycheck Protection Program; the amount of the EIDL loan used for payroll costs must be included in a PPP application.
EIDL advances are no longer required to be deducted from PPP loan forgiveness.
Loan forgiveness amounts are predicated upon maintaining payroll continuity and other allowable costs during the covered periods (24 weeks from loan origination). Calculation of amount forgiven is based on total payroll cost and payments made on debt during covered period; no less than 60% of loan funds must be applied to payroll costs for consideration of full forgiveness, partial forgiveness will be calculated for lesser amounts attributed to payroll costs. Documentation for loan forgiveness will include Federal and State tax filings, financial statements verifying payment of debt obligation and other documentation.
All borrowers may elect to use the original 8-week covered period or a 24-week covered period.
In order to fully qualify for forgiveness, businesses are required to apply a minimum of 60% of loan proceeds to payroll costs with up to 40% reserved for other qualified expenses.
Businesses have until December 31, 2020, to restore workforce levels to maximize forgiveness eligibility. Additional exceptions for loan forgiveness were added for businesses unable to find qualified replacement employees or unable to restore business operations due to COVID-19 operational restrictions.
Borrowers receiving loan approval on or after June 5, 2020 will have five years to repay their loan if they do not qualify for full forgiveness. Borrowers who received funding prior to June 5, 2020 should apply for forgiveness first before requesting a modification of terms for any amount not forgiven.
Agents (i.e. CPA) acting on behalf of a PPP Borrower must submit a request to act in representative capacity and receive approval from Umpqua Bank prior to accumulation of such expenditures. Please submit your request to SBALendingAppSysAccess@UmpquaBank.com and wait for a response.
How can I track the status of my loan?
You can easily track the status of your loan request by logging into the Portal and viewing your dashboard under “YOUR PRODUCTS”.
What if I have login challenges or need to reset my password to the portal?
If you have already created an account for PPP and are unable log-in to the application portal, please use the “Need Help Signing In” function. You will be able to reset your password, unlock your account or obtain a forgotten User ID. Please note this is a different log-in than to your Umpqua Bank online accounts. If you have not yet created an account for PPP, please select the “Sign up” button.
Can you confirm my application was submitted/received?
Customers will receive an email confirmation once they submit their application.
Please check your email, including your spam and junk folders, for this confirmation.
How do I upload documents into the Portal?
You can view step-by-step instructions on how to upload documents here.
What do I need to do if I have duplicate applications?
No further action is necessary on your part. If anything is required to process your loan request, we will contact you via the dashboard portal.
Where can I find my first PPP loan number to complete the application?
Please refer to your first PPP loan note for the loan number. The number is a ten-digit number with a dash before the last two numbers (e.g. 12345678-90).