Coronavirus (COVID-19) Loan Options

FAQs and HNB Program Information Updates

Overview of Second Draw Paycheck Protection Program (PPP2)

HNB Digital SBA PPP2 Loan Portal

To begin your PPP2 application, please access the portal below. For the best experience, please avoid use of Internet Explorer.

Loan Portal Tutorial

PPP Loan Portal

If your PPP loans amounts to $50,000 or less, you are eligible for streamlined processing by the SBA of your forgiveness application. Please note that you have 10 months from the close of your 24-week forgiveness period to file your forgiveness application.

Loans under $150,000 do not require supporting documentation to be submitted.

• For loans made prior to June 5, the forgiveness period has been extended from 8 weeks to 24 weeks, or a borrower may choose to maintain the original 8 weeks; the covered period cannot extend beyond December 31, 2020. If your loan was made after June 5, your forgiveness period is 24 weeks with the covered period not extending beyond December 31, 2020.

• The required percentage of funds to be used for payroll expenses has been reduced from 75 to 60%; however, the borrower must spend at least 60% of the funds on payroll expenses or forgiveness eligibility will be reduced.

• Borrowers can use the 24-week period to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness.The deadline to do so has been extended to December 31, 2020.

• There are two new exceptions allowing borrowers to achieve full PPP loan forgiveness even if they don’t fully restore their workforce. Previous guidance already allowed borrowers to exclude from those calculations employees who turned down good faith offers to be rehired at the same hours and wages as before the pandemic. The new bill allows borrowers to adjust because they could not find qualified employees or were unable to restore business operations to Feb. 15, 2020, levels due to COVID-19 related operating restrictions.

• HNB PPP loan maturity is 5 years. If your PPP loan isn't fully forgiven, payments on the balance will begin one year from the disbursement date. 

• PPP borrowers may also delay payment of their payroll taxes, which was prohibited under the CARES Act.

We encourage you to review the Treasury’s PPP Borrower Fact Sheet for information on appropriate use and forgiveness requirements.

 

 

 Frequently Asked Questions

 

 

Active Applications Over $150,000

 

Please also compile a file containing the following points of documentation:

 

• Copies of payroll tax reports file with the IRS (including Forms 941, 940, state income and unemployment tax filing reports) for the 24 week period following the disbursement of the loan.
• Copies of payroll reports for each pay period for the 24  week period following the disbursement of the loan. Gross wages including PTO (which might include vacation, sick and other PTO) should be reflected.
• Documentation reflecting the health insurance premiums paid by the company under a group health plan including owners of the company for the 24 week period following the disbursement of the loan should be provided. Copies of the monthly invoices should suffice.
• Documentation of all retirement plan funding by the employer for the 24 weeks following the disbursement of the loan should be sufficient. Copies of work papers, schedules and remittances of the retirement plan administrator should be available.
• Copies of all lease agreements for real estate and tangible personal property should be presented along with proof of payment during the 24 week period following the loan origination date.
• Copies of all statement of interest paid on debt obligations incurred prior to February 15, 2020, indicating payment amounts and proof of payment for the 24 week period following the disbursement of the loan.
• Copies of canceled checks, statements or other evidence of utilities paid during the “covered period” for the 24 week period following the disbursement of the loan.
• Any and all additional documentation required by HNB to support and document the use of the proceeds of the loan.

Application Versions

Two versions of the Forgiveness Application have been made available for your use by the SBA. 

 

 3508EZ PPP Loan Forgiveness Application 

To be eligible for use of the 3508EZ application, you must meet one of the three requirements outlined.

• 3508EZ Instructions
• 3508EZ Application

 

Standard Application

• Application Instructions
• Standard Application

 (Spanish versions available upon request)

 

Submit Your File for Forgiveness Consideration

 

 

About

The U.S. Small Business Administration (SBA) is now offering loan programs in response to the tremendous detrimental economic impact of COVID-19. Working alongside banks, such as HNB, the SBA and other federal agencies are working together to protect public health. Our top priority is to ensure small businesses can continue their contributions to the state’s economy, and our nation.

Through the announcement of The Coronavirus Aid, Relief, and Economic Security (CARES) Act, $349 billion is being made available nationally to assist small businesses and their ability to keep their staffs’ employed as we work through this challenging time.

An explanation of provisions that are available through the CARES Act is summarized in the following document for your convenience: Coronavirus Emergency Loans Small Business Guide and Checklist.

 Programs offered through the SBA include:

• Paycheck Protection Program - to help businesses maintain payroll
• Emergency Economic Injury Grant – quick infusion of smaller amounts of cash for business continuity
• Small Business Debt Relief Program – to ease fears in regards to payment of your current or future SBA loans

Learn More

 

 

 

 

 

 

 

Our communities and businesses in the NEPA Region continue to feel the increased impact of COVID-19. NEPA Alliance has been engaged since the onset of this outbreak to be sure businesses stayed informed and know what assistance is available.  NEPA will assist with the following:

• Federal:
• SBA will soon have the Economic Injury Disaster Loan assistance available for businesses. These loans can be used to cover expenses still incurred during the shutdown period. For more information on SBA Disaster Loan Assistance Programs, please click here.

• State:
• The Pennsylvania Industrial Development Authority will provide up to $100,000 to eligible small businesses at 0% interest with no payments due for 12 months after funding. NEPA is currently awaiting guidance from PIDA on the application process and more information will be available shortly. NEPA will assist all business with these applications.

• Local:
• NEPA Alliance has 11 small business loan programs that are available to assist small businesses during this time. Please contact them if you are interested.

Information relating to the available programs is changing rapidly, please be sure to check NEPA Alliance's social media, website and media releases for any updates about the various programs noted above. Contact financing@nepa-alliance.org to be added to an emailing data base for the most recent updates.

Pike County has approximately $340,000 in funding available through its Small Business Forgivable Loan Program. This funding will assist small businesses in Pike County with forgivable loans of up to $70,000. Pre-applications are due on March 31. Two online lunch and learn sessions about the program will be held on February 16 and 23 at noon. Businesses can learn more and register for the lunch and learn sessions at PikeForward.com.
 
To be eligible for this program, businesses must have been open for at least 12 months, filed at least one tax return, have at least one full time employee and less than 100 employees worldwide, have annual revenue of $1 million or less, be up-to-date on taxes, be a viable business, and have been adversely impacted by the COVID-19 pandemic. Certain types of businesses, including real estate developers, golf courses or country clubs, and nonprofit organizations are not eligible.
 
Businesses can use funding to pay for a variety of operating expenses. In 2020, four businesses received a total of $183,190 of assistance. “The Small Business Forgivable Loan Program offered by Pike County is a great opportunity for local businesses to receive funding for staffing, utilities, mortgage or rent, insurance, and advertising–items that are not covered in the PPP loan,” shared Bridget Gelderman, owner of East Shore LLC in Hawley. “In addition, the County provided support staff that made applying simple! Any small business in Pike County that qualifies should apply.”
 
Loans will be forgiven and become a grant when business owners provide documentation to show that they have retained at least one full-time equivalent job for a low-to-moderate income individual for every $35,000 of assistance received.
 
This program was funded by a grant from the United States Department of Housing and Urban Development, under the administration of the Commonwealth of Pennsylvania Department of Community and Economic Development and Pike County.
 
Full program guidelines and an online application are available at PikeForward.com.