Don't think so. I think the period starts when the loan is given.

That's my understanding as well. If you want the loan forgiven, you cannot layoff or reduce salaries during that 8-week period. Once that period is up, you'll have to provide proof and that portion of the loan will be forgiven. Anything remaining could be held over at a 1% rate paid over 2 years with a 6 month delay in payments.

Funded this morning. First Financial in B/CS is my bank.

dave99ag said:

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If you want the loan forgiven, you cannot layoff or reduce salaries during that 8-week period.

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I've seen contradictory info regarding "or reduce salaries." I've seen contradictory statements saying:

• You cannot reduce anyone making below $100,000 more than 25%. But it fails to clarify how salaries over $100,000 are to be treated.
  
• And, contradicting that, I've seen that you must maintain payroll consistent with 2019 payroll (prorated for 8 weeks) implying that there can be no reduction in salaries to anyone, whether they fall above or below $100,000.

Clarification on that issue would be appreciated. I have that as a question for my banker but I am staying out of their way for a few days while they process applications.

Confusion

CSAG96 said:

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Funded this morning. First Financial in B/CS is my bank.

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really? you may be the first person that's actually gotten money from this - how much loan if you don't mind telling?

CSAG96 said:

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Funded this morning. First Financial in B/CS is my bank.

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They were the first bank that actually took my wife's call last week. Even though we couldn't use them because we don't have an account with them, they put us on their email distribution list so we could be up-to-date. We bank with Chase and just following First Financial's emails, they were miles ahead of Chase. It's frustrating that a local bank could be that far ahead of a national bank like Chase, but glad to hear it worked out for you. We're still waiting on Chase. Might have to switch banks when this is all over.

The local banks are structured around working for their customers.

The large banks are structured around selling things to their customers.

Proposition Joe said:

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The local banks are structured around working for their customers.

The large banks are structured around selling things to their customers.

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yup - of our 9 companies, the smallest banks have been the quickest to move.

who's dragging their feet?

Comerica, BofA, and PNC just got their act together.

Declined this morning by Cenntennial. Anybody have any suggestions? Will be going to other local banks ASAP.

HillcountryAg97 said:

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Declined this morning by Cenntennial. Anybody have any suggestions? Will be going to other local banks ASAP.

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Did they say why? I thought the ppp was a sure thing with documentation to back up application.

They said not enough liquidity...

HillcountryAg97 said:

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They said not enough liquidity...

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which is essentially the purpose of the loan. wow.

HillcountryAg97 said:

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They said not enough liquidity...

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What? I'm not even being asked that at all. All that I needed to provide was the payroll ledger and some IRS forms.

maybe he means the bank's liquidity?

Yes, it is the bank's liquidity. Trying another bank, hope this works out.

HillcountryAg97 said:

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Yes, it is the bank's liquidity. Trying another bank, hope this works out.

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how's your volume?

About 60%. Were are hustling a bit to get that. Seeing patients in their cars, video visits, etc.

Good luck to us all.

Time to squeeze a little harder, Ags.

HillcountryAg97 said:

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About 60%. Were are hustling a bit to get that. Seeing patients in their cars, video visits, etc.

Good luck to us all.

Time to squeeze a little harder, Ags.

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60%? Jealous.

Hang in there. T&P for you and all of us affected.

Just an Ag said:

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dave99ag said:

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If you want the loan forgiven, you cannot layoff or reduce salaries during that 8-week period.

---

I've seen contradictory info regarding "or reduce salaries." I've seen contradictory statements saying:

• You cannot reduce anyone making below $100,000 more than 25%. But it fails to clarify how salaries over $100,000 are to be treated.
  
• And, contradicting that, I've seen that you must maintain payroll consistent with 2019 payroll (prorated for 8 weeks) implying that there can be no reduction in salaries to anyone, whether they fall above or below $100,000.

Clarification on that issue would be appreciated. I have that as a question for my banker but I am staying out of their way for a few days while they process applications.

---

Any thoughts on this?

I read it as anyone over 100k is treated as 100k - and no claiming high on an under 100k employee in order to give more than 100k to the over 100k people.

Joe, that sounds like the qualifying payroll for calculating the loan. I'm asking about the actual payroll level you have to maintain once you get the loan. For instance, An employee that makes $200,000 qualifies at $100,000, but from what I've seen, I'm required to either maintain their pay at 100% ($200,000, prorated), or I have the ability lower it up to 25% for the 8 week period ($150,000, prorated). Which is it?

The simple answer is that as long as 75% of your loan was used to make payroll the loan will be forgiven.

sbs said:

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The simple answer is that as long as 75% of your loan was used to make payroll the loan will be forgiven.

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My question is all about maintaining 100% forgiveness and hopefully it is as simple as what you say, but I can't get a straight answer. The payroll mandate of 75% of the total loan amount is clear enough. But on the SBA website with the brief PPP overview, it says,

Quote:

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"Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease."

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At the bottom of page 13 of the Interim Final Rule it states:

Quote:

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"The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. That is, the borrower will not be responsible for any loan payment if the borrower uses all of the loan proceeds for forgivable purposes described below and employee and compensation levels are maintained."

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What is the baseline for maintaining salaries? I've seen conjecture saying 75% of the 2019 payroll. I've seen conjecture saying 100% of 2019 payroll. Some seem say just as long as 75% of the loan amount is used for payroll (which does not seem to imply maintaining anything). Nobody seems to know for certain, and nowhere in the rules does it clarify.

The actual bill has 2 components for determining what percentage of forgiveness you qualify for. The first is maintaining the same number of Full Time Equivalent employees. If you maintain 90%, then your maximum forgiveness is now 90%. The second component is not having a reduction of more then 25% of an employee salary or wages. Every $ below 25% is a $ that isn't forgiven is the way I've read it. I assume additional guidance will be coming from the SBA.

Regardless of the forgiveness, at worst, you get a 1% 24 month loan with no payments for 6 months.

Here is the text from the once again, final rule from the SBA regarding forgiveness. This came out today. Keep in mind, this has changed several times, and may change again. Bottom line, they will prorate off of Feb 15 in some form or fashion yet to be determined. About page 14 or so. They also will look at FTE in the equation, but we have no idea how.

"The actual amount of loan forgiveness will depend, in part, on the
total amount of payroll costs, payments of interest on mortgage obligations
incurred before February 15, 2020, rent payments on leases dated before February
15, 2020, and utility payments under service agreements dated before February
15, 2020, over the eight-week period following the date of the loan."

https://s3.amazonaws.com/ClubExpressClubFiles/365559/documents/SBA_Iterim_Final_Rule_992271572.pdf?AWSAccessKeyId=AKIA6MYUE6DNNNCCDT4J&Expires=1586465837&response-content-disposition=inline%3B%20filename%3DSBA_Iterim_Final_Rule.pdf&Signature=pP2MfVn216kkizfDxI88d6hEMxY%3D

Also, be advised that banks are winging this also due to lack of complete clarity from the SBA. We are actively processing these for existing customers only and have reached our capacity....many other banks have also. Keep trying any bank to find out if you can apply. Also, keep in mind that if the FRB decides to actually set up a facility to buy on a non-recourse basis these loans, then the availability will increase in local markets.

This program is one where the SBA is trying to design, build and fly an airplane all at once. We are passengers on it and there are major holes in the plane. Banks are also assuming huge risks due to the vague nature of the guidelines for everyone.

I'm praying I get the loan. Then I'll worry about the forgiveness.

-TK

Anyone received anything back from chase after putting in the application?

My wife's business banks with chase, she applied days ago and nothing came back from chase, not even an acknowledgment they received the application.

Can a business apply for this at multiple banks?

Needless to say, chase probably just lost a business and personal banking customer.

We received an acknowledgement from Chase on Monday. I applied last Friday within a few hours of the application going live. Who knows when we'll get an approval notice.

Quote:

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We received your Paycheck Protection Program loan application. You'll receive your loan decision by email from Chase soon.

Chase branch and service teams will be unable to answer any questions about the status of your loan. Please visit chase.com/cares for the latest updates on this program.

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kubiak03 said:

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Can a business apply for this at multiple banks?

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i'm pretty sure the answer to this is yes.

we got our e-tran number from the bank last night, which "guarantees" funding according to our banker. not to be dismissive of our banker, but i don't buy guarantees from the government...very hopeful though. we were on the cusp of applying at another bank(s) had we not heard back today.

if i'm in a company's shoes that's not getting a response from a bank (esp a big one like chase, wf, etc), then i'd apply somewhere else.

I received funding through BBVA last night. They were outstanding in the process.

Online application Friday
Request for forms Saturday
Daily communication during the week. Final forms to sign yesterday

You should be able to apply to multiple banks.

Only one application will be accepted into Etran though, and you can only close one. Basically, it is the first bank to enter the loan into SBA Etran or the portal that was opened yesterday or the day before.

Pushing the volume, sheer numbers, thru the SBA system is overloading the system but it appears to be getting somewhat better. We have been asking the SBA since last Tuesday for two additional access permissions to their system.....still waiting and no response.

ORAggieFan said:

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I received funding through BBVA last night. They were outstanding in the process.

Online application Friday
Request for forms Saturday
Daily communication during the week. Final forms to sign yesterday

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That's awesome! I'm jealous. I'm with Chase and same thing other posters have described. I completed my app within the first 30 min of them opening their online app (not just the contact form). I got a "received" confirmation on Monday but nothing since then.

Does BBVA require you to be a customer? Anyone had luck with banks that will accept new customers?