COVID-19: Paycheck Protection Program

Paycheck Protection Program Update:

Congress has recently passed legislation, the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act, providing additional Paycheck Protection Program (PPP) funding, a mechanism for requesting a second PPP loan, and altering forgiveness rules for currently outstanding PPP loans.

The President has signed the new legislation, which was followed by the Small Business Administration's issuance of implementing and interpreting regulations. Click here for more information regarding second PPP loan requirements and forgiveness.

Whether this is your first time applying for PPP, or your second round, please review the latest Supporting Documents Checklist and 2021 PPP Origination Quick Guide, which shows a side-by-side comparison of the first and second PPP loan general guidelines along with required documents you will need based on the application type you will be submitting for your business.

If you are interested in applying for the SBA Paycheck Protection Program, please click the Notify Me link below. We will notify you as soon as we are able to take your application.

Here's what you need to know to apply:

Getting Started

  1. You are a business client of our bank.
  2. If you are applying for a second PPP loan, you must be a business with 300 or fewer employees or are otherwise eligible under the PPP guidelines.
  3. This is your first PPP loan or you have used the full amount of your first PPP loan on eligible expenses.
  4. You demonstrate at least a 25% reduction in gross receipts in any quarter of 2020 relative to the same 2019 quarter gross receipts during the first, second, third, or, fourth quarter.
  5. Select Notify Me below.

What's Next?

  1. You'll receive an email confirming your request to apply for the SBA Paycheck Protection Program.
  2. When we are ready to process your application, you will receive a separate email with instructions to apply.
  3. Review the PPP Supporting Documents Checklist to ensure you have the relevant documents to apply.
  4. A representative will process your application and provide you an update on your SBA Paycheck Protection application.
  5. If approved by the SBA, a loan closing will be arranged and funding will follow.

NOTIFY ME

To help make sure important emails reach your inbox, please add our unmonitored sending addresses, bokfinancial@emails.bokfinancial.com and alert@bokf.com, to your email address book. Please be sure to periodically check your spam or junk folder for messages from us, as we cannot control the spam filtering policies of email service providers.

Opportunity for a Second PPP Loan

  • Generally, businesses will be eligible for a second round of PPP loan if:
    • It employs not more than 300 employees;
    • Has used, or will use, the full amount of any first PPP loan on eligible expenses; and
    • Demonstrates at least a 25% reduction in gross receipts in any quarter of 2020 relative to the same 2019 quarter.
  • The amount of second round PPP loans will generally be 2.5x average monthly payroll costs (except for certain industries like restaurants and accommodations) and will be capped at $2,000,000.
  • Second round PPP expands eligibility to additional types of non-profits, news organizations, destination marketing organizations and others.
  • Still requires that PPP loan funds be used for eligible expenses, but expands the types of eligible expenses to include:
    • Covered expenditures for operations. Payment for any software, cloud computing, and other human resources and accounting needs.
    • Covered property damage costs. Costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance.
    • Covered supplier costs. Payments to a supplier pursuant to a contract, purchase order, or order for goods that was in effect prior to taking out the loan and was essential to the recipient's operations at the time at which the expenditure was made. Supplier costs of perishable goods can be made before or during the life of the loan.
    • Covered worker protection expenditure. Investments in personal protective equipment and other adaptive costs to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration.
  • To achieve full forgiveness, 60% of the PPP loan must still be used for eligible payroll expense.
  • The SBA will provide a simplified second round application process for PPP loans of $150,000 and less.

Forgiveness of Existing PPP Loans

The new “Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act” simplified the forgiveness process for loans $150,000 or less and added more eligible expenses, including certain property damage costs, supplier costs, and worker protection expenditures as described above.

The SBA forgiveness regulations and revised forms for loans of $150,000 or less were recently released. Additional details about applying for forgiveness with the new rules and revised forms will be provided shortly.

Please be aware that due to the high demand for PPP origination applications, there may be delays in the processing of PPP forgiveness applications. Additionally, we may require further documentation or clarification from you. Your cooperation in providing requested items in a timely manner will help us process your forgiveness application as quickly as possible.

For our business clients who received PPP funding for more than $150,000, who would like to apply for forgiveness now, we look forward to supporting you throughout the forgiveness process.

Here is helpful information as you prepare to submit your forgiveness application. When available, we will update the information below for our borrowers with loans that are $150,000 or less.

  • Adobe PDF FIle Review this checklist to ensure you have all of the necessary documents
  • Adobe PDF FIle Review the naming conventions
  • Adobe PDF FIle Review these helpful tips before you begin your application
  • Adobe PDF FIle Review the slides covered in the Understanding PPP Forgiveness webinar
  • Watch our helpful series of video modules compiled to guide you through the loan forgiveness process, to include the following topics:
    • Qualifying for Form 3508 EZ
    • Selecting a “covered period”
    • Calculating payroll and non-payroll expenses
    • Exceptions and safe harbors for employee and wage reductions
    • Navigating the forgiveness forms
    • Qualifying for Form 3508S

Understanding PPP Forgiveness – Watch Now! Updated Version Coming Soon!

To help make sure important emails reach your inbox, please add our unmonitored sending addresses, bokfinancial@emails.bokfinancial.com and alert@bokf.com, to your email address book. Please be sure to periodically check your spam or junk folder for messages from us, as we cannot control the spam filtering policies of email service providers.

For additional information regarding the forgiveness of PPP loans visit: www.sba.gov

The forgoing is only a general summary, is not intended to be legal, tax or business advice, and may be changed prior to enactment into law or by subsequent SBA regulation. Please consult your advisors to determine all matters of PPP eligibility and requirements.