SBA PPP Loan Forgiveness Loans Less than $150k

SBA PPP Loan Forgiveness Loans Less than $150k

Finance Office

2021

IntroductionsPanelists:

Finance Department:Maureen Creedon – Executive Director of FinanceJoseph Crehan – ControllerJennifer Richardson – Assistant Controller

Parish Services:Denise Biernat – Director Parish Services

Benefits Department:Kerri Shorter – Benefits Manager

CSO:Martha Hultzman – Associate Superintendent of Finance, CSO

Presenter: Yitao Ward – Senior Manager, Finance

Confidential: RCAB Central Ministry & Parish Staff Only-Page 2

Topics

SBA PPP Loan forgiveness guidance for loans less than $150,000– Overview

– PrimePay Reports

– Loan Portal Walkthrough – Century Bank Portal example

– Document Retention


SBA PPP Loan Forgiveness - Overview


• As communicated in the email dated 12/23/2020 sent to all BA accounts:

– The payment deferral period applicable to your SBA PPP loan (the “deferral period”) will be longer than the original 6-month period, as reflected in your original loan document. You will not be required to make payments on your loan during the new deferral period, which has been extended to 10 months immediately following the end of your covered period. Your covered period is the 8-week period referenced in paragraph 3(e) of your loan document. However, you may elect to extend this 8-week period for up to 24 weeks in order to enjoy maximum forgiveness.

– By utilizing the longer 24 week covered period, your parish or school will most likely be able use the loan proceeds entirely on payroll. Doing so will simplify the application process, since the inclusion and documentation of health insurance and occupancy costs will not be necessary in order to maximize forgiveness.

– The SBA has approved the 3508S form for all loans less than $150,000

– We have worked with Prime Pay to generate the appropriate reports for you and the memo titled “Instructions –PrimePay Forgiveness Reports” that was sent to all BA accounts on 1/27/2020 will walk you through the instructions on how to properly run these reports.

PrimePay Reports Communication


On 1/27/2020 an email went out to all BA accounts with two attachments:

1. “Instructions – PrimePay Forgiveness Reports” – This memo walks you through step by step on how to generate the PrimePay reports for your SBA PPP loan

forgiveness application

2. “Dates for PrimePay Forgiveness” – This document includes important dates needed to run the reports mentioned above

Both of these documents are attached in the handouts section of this webinar.

FAQ on “Payroll Start Date”


Q: Why are we using the payroll start date AFTER I receive my loan proceeds? Won’t I lose out on the days of the previous payroll period if I received my proceeds mid payroll period?

A: The “Payroll Start Date” represents the start date of the first payroll period after the loan was disbursed. You do not need to include those days in between the date you received your loan proceeds and the next payroll start date because:

• You should have sufficient wages from the 24 weeks to cover your PPP Loan amount.

• It is cleaner to start with a payroll period which was funded entirely by the PPP loan.

• It is easier for lenders to verify wages based on whole pay periods.

• PPP Loan forgiveness regulations, requirements, rules, and the entire process itself has changed several times since you received your PPP loan funds back in the spring of 2020, and this falls under one of those many changes

– When we started this process, we were under the 8-week covered period. Because your PPP loan amount is calculated based on 2.5X of payroll, each day counted. However, with the 24-week covered period, we are able to use the next pay period start date and still maximize loan forgiveness.

PrimePay Reports and Other Supporting Documentation


Using the instructions provided in the memo “Instructions – PrimePay Forgiveness Reports” and the important dates in the “Dates for PrimePay Forgiveness” excel, there are several different reports you will need out of Prime Pay to support your SBA Forgiveness Application:

1. Quarterly Package Reports for Q1-Q4 for calendar year 20202. Payroll Register for period that includes 2/15/2020; this should be check date 2/21/2020 3. Payroll Forgiveness Reports:

– Payroll Costs– Employee Count

4. Payroll registers for the covered period

Other support may be requested:1. Bank Statements showing amounts being debited for the covered period (Century Bank requirement)2. Other lenders may have additional support requests3. Utility tracker if your payroll costs do not exceed your loan amount

Century Bank – SBA Portal


Go to the main Century Bank Page: https://www.centurybank.com/Scroll half way down the page and click on the PPP – Application & Forgiveness Portal, learn more tab

https://www.centurybank.com/



Click on: Application & Forgiveness Portal



If this is your first time, click on the “Begin Forgiveness” button.



Enter in your EIN and your SBA loan number (found on your Promissory Note)



Verify your loan amount by clicking on the amount of your loan.



Using the drop-down menu, select the form that applies to your loan:1. Streamline 3508S Process – loans under $150k



The next slide requires you to certify 8 certain requirements. Once all those requirements are certified you can proceed to “Start: Borrower Employment Detail”.

Example:



• Employees at time of Loan Application: total number of employees at the time of the loan application. (Found on your loan application, this may also auto populate based on your loan application).**

• Employees at time of Forgiveness Application: Enter the total number of employees at the time you are applying for loan forgiveness (see PrimePay Report – Employee Count)

**Next Slide



Sample Letter:** Q:What if my auto populated “Employees at time of Loan Application” is significantly different than my FTE number on the PrimePay report?

A: If the amount in “Employees at time of Loan Application” box is significantly different as compared to the FTE count on the PrimePay report, you may have used the employee head count on the loan application. If so, you will need to refer to the letter you received from the Benefits Office at the time of loan application. You will need to enter the “FTE Count” provided at the bottom of the letter in the “Employees at Time of Loan Application box”. The numbers should be similar if you retained your employees.



• EIDL Advance Amount: N/A

• EIDL Application Number: N/A

• 2019 Annual Revenue: Enter the total revenue for your business in 2019. The value is optional and will not impact your Loan Forgiveness qualification or calculation.

• Click Next: Forgiveness Calculation



Outlines Eligible Costs:1. Payroll Costs: Borrowers are generally eligible for

forgiveness for the payroll costs paid and payroll costs incurred during the 24-week (168-day) or 8-week (56-day) Covered Period or Alternative Payroll Covered Period (“payroll costs”).

1. Covered Period2. Cash Compensation 3. Employee Benefits

2. Eligible Nonpayroll Costs:1. Covered mortgage obligations2. Covered rent obligations3. Covered utility payments: business payments for a

service for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020 (“business utility payments”).



Enter your Calculated Forgiveness: Use the SBA Guidance to calculate your cash compensation for entry into this box. This value will be a key driver of your total forgiveness amount. Using the PrimePay Payroll Forgiveness Report, determine what amount to include here. If the amount on your report is more than your loan, enter the amount listed on the Payroll Forgiveness Report.

If the amount is less, you may need to include health care costs and/or utilities as well to maximize forgiveness.

Click: “Next: Documents”



Upload your supporting documentation:



Upload your supporting documentation continued:

Ensure you name the two documents and select document type. See example below:

The only required supporting documentation that Century Bank is requiring be uploaded is the following:1. The 2/15/2020 payroll register to show

that your entity was in operation at the time

2. The Payroll Cost Forgiveness Report



The Summary Page will notify you of any missing required items. The screen shot below is an example of what you may see:

This amount will be the total amount forgiven.



Submitting your application – fill out the following information of the assigned Signer for the forgiveness application.

WARNING: Once you submitted you will no longer be able to make changes, unless more information is required, or changes must be made after review

Pastor’s Name

Pastor’s Email – WARNING: please be careful when entering the email address. Ensure that it is correct and remind your Pastor to be on the lookout for the loan docs for an e-signature

Pastor/Administrator



Once you have submitted your application, you should receive an automatic email indicating that your application was received. Please ensure you are checking your junk mail for these important communications.



Once you have submitted your forgiveness application, you can follow the status of your application using the guide on the left-hand side of the screen. Please note that Century Bank may reach out to you for additional information/support as well as an E-Signature from the Pastor.

Document Retention – At Time of Application


Once you have submitted your application for forgiveness please send the following items to the SBA mailbox at [email protected] in the Subject line be sure to include your Parish Number, Parish Name and Town/City.

Quarterly Package Reports for Q1-Q4 for calendar year 2020 Payroll Register for period that includes 2/15/2020; this should be check date 2/21/2020 Payroll Forgiveness Reports:

– Payroll Costs– Employee Count

Payroll registers for the covered period Bank Statements showing amounts being debited for the covered period (Century

Bank requirement) Other lenders may have additional support requests Utility tracker if your payroll costs do not exceed your loan amount

mailto:[email protected]

Document Retention – Once Forgiven


You’re required to retain all documents supporting your forgiveness application for four years.

Once you’ve received forgiveness approval from your lender, please send that document to the [email protected] mailbox: Copy of the loan forgiveness doc from your lender

You should also keep hard copies at your parish or school for future reference. The SBA has the right to request those documents over the next four years.


Questions


1. Questions from the group

1. FAQ doc based on questions entered during today’s webinar and last week’s webinar will be distributed

1. For specific questions to your parish, please email the SBA mailbox [email protected]
