SBA PPP2
Coronavirus (COVID-19) Loan Options
The Road to Recovery
Working together, recovery from COVID-19 is possible. Like you, many businesses are feeling financial pressure due to the impact of COVID-19 and containment measures. HNB wants to reassure you that there are resources available to help your business rebound and establish a new normal.
HNB is Here For You
If you have questions regarding HNB, local or national programs available regarding your financial obligations, please contact us via the link below and we would be glad to assist.
Please note that we are updating our information regularly based upon guidance received. The content and recommendations may be subject to change.
SBA Paycheck Protection Program (PPP and PPP2)
Note:
- HNB’s acceptance of an application is not guarantee of funding and is subject to SBA provisions and fulfillment of application requirements.
- HNB will begin accepting first-draw and second-draw PPP applications at 10:00am on January 14, 2021. HNB is eligible to submit eligible applications to the SBA beginning 9:00am on January 15, 2021.
HNB will be supporting the application process for businesses and organizations based or operating in the following service areas:
- Lackawanna County, PA
- Luzerne County, PA
- Pike County, PA
- Susquehanna County, PA
- Wayne County, PA
Updated January 14, 2021
SBA Paycheck Protection Program (PPP2) Information
Full Guide to SBA PPP2 Paycheck Protection Program as Amended by Economic Aid Act
Steps to Prepare
The PPP2 application portal is now open. Before beginning your application, we courage to take the following steps:
Ensure You’re Eligible
Borrowers must demonstrate at least a 25% reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same quarter in 2019.
Calculate Your Loan Amount
Utilize our PPP2 calculator to ensure you’re applying for the correct amount.
Gather Your Documents
Borrowers may need to provide documentation supporting the payroll expense figures used to determine your loan amount. Additionally, we may require copies of:
- Your Driver's License
- Certificate of Organization (for LLCs) or Articles of Incorporation (for Corporations)
- A copy of a voided check for the account where the money will be deposited
- Documentation demonstrating at least a 25% reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same quarter in 2019
- A completed Beneficial Ownership Form
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.
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Loan Forgiveness
Updated January 20, 2021
Active SBA PPP Loans Under $150,000
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.
Forgiveness Eligibility Requirements
Outlined below are the eligibility requirements for forgiveness:
- 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.
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.
Standard Application
(Spanish versions available upon request)
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
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.
