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SBA DISASTER ASSISTANCE 

 

Paycheck Protection Program (PPP) Forgiveness Information

SBA Preliminary Guidance Only, last updated 5/28/2020

 

Guidance is still coming from the SBA regarding PPL forgiveness. We are actively working to make the process as efficient as possible. We will keep you up to date as new information becomes available.

What you can do now:

  1. Review the SBA Form 3508 PPP Forgiveness Application and begin gathering necessary documentation. Don't complete the application yet as we will be receiving additional information from the SBA.
  2. Watch for email communications from Bank of Bartlett with next steps.
  3. Self-employed / 1099 (without employees) need to focus on Page 6 Line 9 for compensation to owners AND page 4 certification #1 “does not exceed eight weeks’ worth of 2019 compensation for any owner-employee or self-employed individual/general partner, capped at $15,385 per individual.”

How much of my loan will be forgiven? According to the CARES Act, SBA will provide loan forgiveness for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities, and not more than 25% of the forgiven amount may be for non-payroll costs. 

The forgiveness amount may be reduced and you will owe money when your loan is due if you use the loan for anything other than business related payroll costs, mortgage interest, rent, and utilities payments (incurred before February 15, 2020) over the 8 weeks after getting the loan.  As specified under the Paycheck Protection Program Rule. If the funds are knowingly used for unauthorized purposes, the federal government may hold the owner legally liable, such as for charges of fraud.

You will also owe money if you do not maintain your staff and payroll.

Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.

Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.

Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020. 

For self-employed who file a 2019 Form 1040, Schedule C the Owner compensation replacement is calculated based on 2019 net profit and forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit, but excluding any qualified sick leave equivalent amount for which a credit is claimed under section 7002 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116-127) or qualified family leave equivalent amount for which a credit is claimed under section 7004 of FFCRA. 

How can I request loan forgiveness? For loans originated by the Bank of Bartlett, you can submit a written request to the Bank of Bartlett eight weeks after the loan origination. The request will need to include documents that verify the number of full-time equivalent employees and pay rates, dollar amounts of payroll costs, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments.  To substantiate your request for loan forgiveness, if you have employees, you should submit Form 941 and state quarterly wage unemployment insurance tax reporting forms or equivalent payroll processor records that best correspond to the covered period (with evidence of any retirement and health insurance contributions). Whether or not you have employees, you must submit evidence of business rent, business mortgage interest payments on real or personal property, or business utility payments during the covered period if you used loan proceeds for those purposes.

 
There is still time to apply for a Paycheck Protection Loan (PPL)

  • You do not have to be an existing Bank of Bartlett customer to apply.
  • Maximum loan is 2.5x your average monthly payroll costs
  • Based on the Treasury Department guidance dated 4/2/20, the interest rate can be as low as 1%, with a cap of 4%
  • A portion of the loan proceeds issued under the PPL, up to or equal to 8 weeks of covered expenses, will be forgiven by the SBA if certain requirements (see below) are met.
 
  

Document checklist for 1099 employees and self-employed individuals:

  • Download this application, and contact a Bank of Bartlett branch manager for assistance.
  • Copy of Drivers' License 
  • 2019 IRS Form 1040 Schedule C (If you have not yet filed a 2019 return, fill it out and compute the value.) 
  • 2019 IRS Form 1099-MISC detailing non-employee compensation received 
  • 2020 invoice, bank statement, or book or record that establishes you are self-employed and in operation on or around February 15, 2020
    • Note: SBA will issue additional guidance for those individuals with self-employment income who: (i) were not in operation in 2019 but who were in operation on February 15, 2020, and (ii) will file a Form 1040 Schedule C for 2020.

Document checklist for businesses:

  • Download this application, and contact a Bank of Bartlett business banker for assistance. 
  • Payroll Expense Verification documents to include:
    • IRS Form 940 and 941
    • Payroll Summary Report with corresponding bank statement.
    • 12 months payroll, by pay period, with summary totals and headcount. If a Payroll Summary Report is not available, Employee Pay Stubs as of February 15, 2020 (or corresponding period) with corresponding bank statement.
    • Breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits, etc.)
    • Verification of number of FTE’s
    • List of All Employees, broken down by Full Time, Part Time, Contract, Salary vs. Hourly, Separate list by those making under 100k and those making over 100k
  • Certification that all employees live within the United States.
  • IRS SS-4 for Tax ID Number
  • Articles of Incorporation/Organization of each borrowing entity
  • Bylaws/Operating Agreement of each borrowing entity
  • Copies of all owners’ Driver’s Licenses   
 

We're here to help. If you need assistance, give us a call.

 
 
 
Every business owner we bank with says the same thing: they need their business partners to understand that it’s tough building a company, and the stakes are high.
 
We get -- because we live it. Over the last 40 years, we have built Bank of Bartlett into  the trusted financial services partner we are today.
 
We offer more than banking products and services. We understand what you need from us for your business. We are dedicated to being your reliable and trusted business partner.
 
When your business is successful, our city becomes an even greater place to live, work, play, learn, and worship. When your path to success needs a little more fuel from a loan or our credit services, we’re here.
 
We invite you to meet with one of our business banking officers for personalized attention and goal-setting that meets your business needs. We’re truly happy to help.
 
Explore our business loan options now!
 

Ignite your life goals with Bank of Bartlett.

 
 

Business Reserve Line of Credit

When you need extra cash fast!

Let us supply the capital you need to grow your business. Small business owners can have access to fast cast at low interest rates for working capital, emergencies, or other business expenses. Our business reserve line of credit is ideal for replacing high interest rate business credit cards.
 

Business Reserve Loan

Fast cash with a fixed rate!

Our business reserve loan allows your small business access to fast cash with quick credit approval. Pick your payment and term. This fixed rate loan is ideal for capital improvements, equipment purchases, or debt consolidation.
 

Commercial Lines of Credit

Need additional capital?

Our commercial lines of credit fund short-term operating needs allowing you more flexibility for your business. Take advantage of discounts from your suppliers, be prepared for peak seasons, or borrow when you need it without having to reapply. Both secured and unsecured options are available. A BoB business banking professional can guide you through the whole process and determine the best solutions from your business.
 

Equipment and Vehicle Loans

Need new equipment or a business vehicle?

BoB's commercial equipment loans offer competitive rates and terms and are ideal for financing business vehicles, specialty equipment, new technology, and more. Pick the term and rate that best fit your needs. A BoB business banking professional can guide you through the whole process and determine the best solutions for your business.
 

Business Purpose Home Equity Line of Credit/Loan

Up to 90% of the appraised value of your home!

BoB offers an open-end line of credit or fixed rate business loan secured by the equity in your home. This line or loan can be used for working capital, equipment purchases, debt consolidation, or even start-up funds. There are usually no closing costs or appraisal fees for loans up to $250,000 (fees may vary for higher loan amounts) and interest paid may be tax deductible (consult your tax preparer). A BoB business banking professional can guide you through the whole process and determine the best solution for your business.
 

Commercial Owner Occupied Loans and Lines of Credit

Purchase or refinance your commercial building!

BoB offers a variety of competitive loan or line of credit options to finance or refinance your commercial owner occupied building. A BoB business banking professional can guide you through the whole process and determine the best solutions for your business.
 

Commercial Investment Property Loans and Lines of Credit

Let us help you grow your portfolio!

BoB offers a variety of competitive loan or line of credit options to finance or refinance your investment properties. A BoB business banking professional can guide you through the whole process and determine the best solutions for your business.
 

Expansion Loans

Need funds for expansion and growth?

BoB expansion loans can provide the capital needed to help your business grow. These loans can provide you with the solutions your business needs for acquisition, expansion, construction, or build-outs. A BoB business banking professional can guide you through the whole process and determine the best solutions for your business.
 

Residential Development and Builder Line of Credit

Residential land development and home construction.

Our development and builder lines offer competitive solutions to help grow our community! We offer interest only payment options with a simplified draw process. A BoB business banking professional can guide you through the whole process and determine the best solutions for your project.
 

Letters of Credit

Free up cash with a letter of credit.

BoB letters of credit can be used instead of cash for a variety of purposes. Contact your BoB business banking professional to help guide you through the whole process and determine the best solutions for your business.
 

Church Loans

Is your church growing and expanding?

BoB offers loans for churches and other non-profit organizations for land purchases, constructions, expansions, or equipment purchases. A BoB business banking professional can guide you through the whole process and determine the best solutions for your organization.