SBA Paycheck Protection Program
SBA PPP Round 3
SBA Paycheck Protection Program – SBA PPP Round 3 is now open!!
On Monday, December 28, President Trump signed a $900 billion COVID-19 relief bill, which includes $284 billion of new funding for a third round of Payment Protection Program (PPP) loans. We estimate that the SBA will begin receiving loan applications between January 15 and January 22, 2021. As was the case with the previous rounds of PPP loans, we are awaiting clear guidance from the SBA regarding certain details of the Program, and will provide regular updates as the rules are released.
The following is what we expect in PPP Round 3:
- Borrower's total employment capped at 300
- Eligibility based on revenue declining - a top line revenue comparison between 2019 and 2020 1st, 2nd, 3rd quarters
- A maximum of $2 million per loan for Round 3
- A maximum of an aggregated total of $10 million for Rounds 1, 2, and 3
- Simplified forgiveness for existing PPP loans of $150,000 or less, with blanket certification from
- Borrower not required to have completed forgiveness from Rounds 1 or 2 to be eligible for Round
You will be using our same portal that we currently use for Loan Forgiveness to submit your application and supporting documentation. We are in the process of updating the site to support Round 3 Loan Applications.
Important Payment Deferrals and Forgiveness update! It has been our privilege to provide you an SBA Paycheck Protection Program (PPP) loan. While the SBA has extended the PPP loan program, many clients are ready to process their Loan Forgiveness Application. Over the last several weeks, PSB has been busy establishing a secure online portal that will aid you in submitting the documentation necessary to seek loan forgiveness.
Round 1 and Round 2 Forgiveness Process:
• Loan Forgiveness Portal Link
Information you need to set up an account:
• SBA Loan #, which can be found on your loan closing documents
• Borrower’s Tax ID or Social Security Number
• View the Lenders Cooperative’s video guide to using the portal
Preparing To Submit Your Loan Forgiveness Application:
• It will be helpful to review the Paycheck Protection Program Loan Forgiveness Application ahead of time to understand what questions you need to answer and supporting documentation you are required to submit.
• The full application can be found here.
• EIDL Advance information can be found here.
Once you start your Loan Forgiveness Application in the portal, you will be able to save and return to the application at a later time if needed.
EZ Form Loan Forgiveness Eligibility:
You may be eligible to use the EZ Form, which is a streamlined Loan Forgiveness Application. Basic qualifications for the EZ form applies to borrowers that:
• Are self-employed and have no employees
• Did not reduce their employees' salaries or wages by more than 25 percent and did not reduce their employees' number of hours
• Experienced reductions in business activity due to health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25 percent.
Upon submitting your Loan Forgiveness Application and supporting documentation, PSB will review and respond to your request. If more information is required to complete a review of your application, you will receive communication through the secure portal requesting this missing documentation. Once the application is approved, you will be requested to electronically sign the submission at which time we will present the package to SBA for final processing.
If you have any questions, please do not hesitate to contact your account officer. Again we appreciate the opportunity to serve you through this Paycheck Protection Loan Program.