PPP Q&A

 

  • Q1. How will I know the Portal is live?
  • A1. The Bank will email Borrowers when the Portal is live. Included in that email will be a link to the Applicant Portal and instructions as to how to log on.

  • Q2. Does it matter which internet browser I use to access the Portal?
  • A2. For optimal performance it is recommended you use Chrome when accessing the Portal, however, the Portal will work in Internet Explorer or Microsoft Edge.

  • Q3. How do I access the Portal?
  • A3. You may access the Portal by clicking here, click on the link provided in the introductory email.   To log in Borrowers will input the Borrower legal name and tax identification number (“TIN”) associated with the PPP loan.  When inputting the TIN do not use spaces or dashes.  Following is a screen shot of the login page.

                    If you have any issues accessing the Portal, contact your relationship manager for assistance. You may also email us at PPPforgiveness@hickorypointbank.com. Please be aware, every time you access the Portal, you will use the business legal name and TIN. You will also be prompted to input a one-time passcode (“OTP”) that will be sent via email. The email with the OTP (and all other communication provided directly out of the Portal) will come from ESFSCMConfigurator@Fiserv.com. The OTP must be input before access to the Portal is granted. The OTP is time sensitive and typically expires within 2 minutes. Following is a screen shot of the OTP input page.                   Please do respond or send any messages directly to ESFSCMConfigurator@Fiserv.com. Messages sent to that email address will not be reviewed. All email inquiries should be sent directly to your relationship manager or to PPPforgiveness@hickorypointbank.com.


 

  • Q4. What should I do when first access the Portal?
  • A4. When accessing the Portal for the first time, please review the loan data and ensure everything is accurate. If anything appears incorrect, please contact your relationship manager or email us at PPPforgiveness@hickorypointbank.com before making any changes. Following is a screen shot of the initial page of the Portal (no information is populated in this example)

                   


  • Q5. Will I have access to all of the application forms (the full Form 3508, the 3508EZ, or the 3508S) within the Portal?
  • A5. One of the first questions asked within the Portal is whether you intend to apply for forgiveness utilizing the full Form 3508, Form 3508EZ or Form 3508S.  The Portal workflow will adjust the input process based on the application form selected.  For Borrowers that utilize the full 3508, the schedules and worksheets can be created and completed within the Portal.  If a Borrower has already prepared the necessary schedules and worksheets, they may simply submit totals into the Portal.  However, all supporting documentation confirming the totals, including copies of the schedules and worksheets created, must be provided.

  • Q6. How do I determine whether to use the Form 3508S, Form 3508EZ, full Form 3508?
  • A6. Borrowers should consult with their professional advisors to determine which form is applicable.  However, here is a summary as to when the various forms can be utilized.

    3508S

    In most cases, Form 3508S can be used if the total PPP loan amount you received was $50,000 or less.  The 3508S requires fewer calculations and less documentation for eligible borrowers.   Additionally, Borrowers that use Form 3508S are exempt from reductions in loan forgiveness based on reductions to full-time equivalent (“FTE”) employees or in salaries or wages. 

    3508EZ

    Form 3508EZ can be used, so long as at least one of the following three criteria is satisfied (please refer to the instructions for Form 3508EZ for more details – a link to the document can be found later in this FAQ):

    • Borrower is self-employed, and had no employees
    • Borrower had employees but did not reduce the annual salary or hourly wage of any employee by more than 25% during the Covered Period or Alternative Payroll Covered Period as compared to the period between January 1, 2020 and March 31, 2020 and did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period (some exceptions apply)
    • Borrower had employees but did not reduce the annual salary or hourly wage of any employee by more than 25% during the Covered Period or Alternative Payroll Covered Period as compared to the period between January 1, 2020 and March 31, 2020 and was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by various governmental agencies related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

     

    If none of these criteria apply, use Form 3508.


  • Q7. Are there any additional resources available while completing the loan forgiveness application?
  • A7. Within the Portal you will find a tab for the Knowledge Center.

        The Knowledge Center was developed in collaboration with the Portal developer and Ernst and Young. The Knowledge Center provides a large amount of information and additional FAQs to help guide borrowers through the forgiveness process. Information in the Knowledge Center can also be accessed by clicking on the “Click to Learn” tabs throughout the application. Following are screen shots of examples of the “Click to Learn” tabs.          


  • Q8. How can I get assistance in preparing the appropriate schedules and worksheets and other calculations required in the loan forgiveness application?
  • A8. Hickory Point Bank cannot assist directly in preparing the loan forgiveness application or any of the related worksheets and/or schedules. We recommend that you consult your professional advisors if you have any questions or need assistance. 

  • Q9. If I have a question regarding the process, can the Bank access the Portal and provide assistance?
  • If you have questions or issues with the Portal or any part of the process, please do not hesitate to contact your relationship manager, or email us at PPPforgiveness@hickorypointbank.com. We will do everything we can to assist, however, as stated above, the Bank cannot assist directly in preparing the application or any of the related worksheets and/or schedules. Once a loan forgiveness application is submitted to the Bank, the Bank will review all information in the application as well as all documents submitted, however, the Bank cannot make any changes to the information, nor can we see data in real time. After reviewing the information, the Bank can send the application back to the Borrower to make changes/corrections.

  • Q10. What documents are required to be uploaded into the Portal?
  • A10. Borrowers will be required to upload appropriate documentation to verify that the funds were used for appropriate purposes and to substantiate all calculations made.  Because each circumstance is different, the specific documents required will differ from Borrower to Borrower.  Documentation required to be submitted (or maintained but not submitted) will also depend upon which application is being used.  We encourage you to work with your accountant, payroll service provider or other advisors to determine which information should be provided.  However, following is a summary of the required documentation to be submitted, as highlighted in the instructions to application forms.

    SBA Form 3508S:

    • Payroll Costs – documentation verifying the eligible cash compensation and non-cash benefit payments during the Covered Period, or Alternative Payroll Covered Period, consisting of each of the following:
      • Bank account statements or detailed payroll service provider reports documenting the amount of cash compensation paid to employees for each pay period during the Covered Period, or Alternative Covered Period. The payroll reports provided can be summary reports or provide detail for each employee.
      • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered period. The instructions state both federal forms (typically Form 941) and state filings should be provided.
      • Payment receipts, canceled checks or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount.
    • Nonpayroll Costs – documentation verifying the existence of the obligations/services prior to February 15, 2020 and the eligible payments made during the Covered Period, including:
      • Business mortgage interest payments – copy of the lender amortization schedule and receipts or cancelled checks verifying the payments made; or lender account statements from February 2020 through one month after the end of the Covered Period verifying interest amounts and eligible payments.
      • Business Rent or lease payments – Copy of the current lease agreement and receipts or cancelled checks verifying eligible payments made; or lessor account statements from February 2020 through one month after the end of the Covered Period verifying eligible payments.
      • Business Utility Payments – Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying the eligible payments.

    SBA Form 3508EZ:

    • Payroll Costs – documentation verifying the eligible cash compensation and non-cash benefit payments during the Covered Period, or Alternative Payroll Covered Period, consisting of each of the following:
      • Bank account statements or detailed payroll service provider reports documenting the amount of cash compensation paid to employees for each pay period during the Covered Period, or Alternative Covered Period. The payroll reports provided can be summary reports or provide detail for each employee.
      • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered period. The instructions state both federal forms (typically Form 941) and state filings should be provided.
      • Payment receipts, canceled checks or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount.
      • If the borrower elected the 3508EZ because it certifies that, during the Covered Period, it did not reduce annual salaries/hourly wages of any employee by more than 25% and did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period, the borrower must provide documentation indicating the average number of FTEs on payroll employed by the borrower on January 1, 2020 and at the end of the Covered Period.
    • Nonpayroll Costs – documentation verifying the existence of the obligations/services prior to February 15, 2020 and the eligible payments made during the Covered Period, including:
      • Business mortgage interest payments – copy of the lender amortization schedule and receipts or cancelled checks verifying the payments made; or lender account statements from February 2020 through one month after the end of the Covered Period verifying interest amounts and eligible payments.
      • Business Rent or lease payments – Copy of the current lease agreement and receipts or cancelled checks verifying eligible payments made; or lessor account statements from February 2020 through one month after the end of the Covered Period verifying eligible payments.
      • Business Utility Payments – Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying the eligible payments.

    SBA Form 3508:

    • Payroll Costs – documentation verifying the eligible cash compensation and non-cash benefit payments during the Covered Period, or Alternative Payroll Covered Period, consisting of each of the following:
      • Bank account statements or detailed payroll service provider reports documenting the amount of cash compensation paid to employees for each pay period during the Covered Period, or Alternative Covered Period. The payroll reports provided can be summary reports or provide detail for each employee.
      • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered period. The instructions state both federal forms (typically Form 941) and state filings should be provided.
      • Payment receipts, canceled checks or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount (on lines 6 and 7 of Schedule A).
    • Nonpayroll Costs – documentation verifying the existence of the obligations/services prior to February 15, 2020 and the eligible payments made during the Covered Period, including:
      • Business mortgage interest payments – copy of the lender amortization schedule and receipts or cancelled checks verifying the payments made; or lender account statements from February 2020 through one month after the end of the Covered Period verifying interest amounts and eligible payments.
      • Business Rent or lease payments – Copy of the current lease agreement and receipts or cancelled checks verifying eligible payments made; or lessor account statements from February 2020 through one month after the end of the Covered Period verifying eligible payments.
      • Business Utility Payments – Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks, or account statements verifying the eligible payments.
    • FTEs – documentation showing, at the election of the borrower:
      • The average number of FTEs on payroll per week employed by the borrower between February 15, 2019 and June 30, 2019;
      • The average number of FTEs on payroll per week employed by the borrower between January 1, 2020 and February 29, 2020; or
      • In the case of a seasonal borrower, the average number of FTEs on payroll per week employed by the borrower between February 15, 2019 and June 30, 2019; between January 1, 2020 and February 29, 2020; or any consecutive 12-week period between May 1, 2019 and September 15, 2019.
      • The time period selected must be the same time period selected for purposes of completing PPP Schedule A, line 11.
      • Documentation submitted may include detailed payroll reports and/or tax filings.

    In addition to documentation the Borrower is required to submit with the application, the instructions to the application forms also include lists of documents that Borrowers must maintain but are not required to submit.  Following are links to the various application forms and related instructions.  Please refer to the instruction documents for more details as to what documentation is required.

    Form 3508S Instructions (treasury.gov)

    Form 3508EZ Application (treasury.gov)

    Form 3508EZ Instructions (treasury.gov)

    Form 3508 Application (treasury.gov)

    Form 3508 Instructions (treasury.gov)

    Please be aware that all records related to a Borrower’s PPP loan, including documentation submitted with the original loan application, documentation supporting certifications as to the necessity of the loan request and eligibility for a PPP loan, documentation necessary to support the request for forgiveness, and documentation demonstrating material compliance with PPP requirements must be retained for six years after the date the loan is forgiven or repaid in full.   Additionally, Borrowers must permit authorized representatives of the SBA access to such documents upon request


  • Q11. Does the Portal assist me in calculating the amount eligible for forgiveness?
  • A11. The Portal will calculate the estimated amount of forgiveness in real time based on the information input into the application.

  • Q12. How do I submit my loan forgiveness application?
  • A12. After you have completed the loan forgiveness application, be sure that all information is completed, all certifications have been initialed, you have signed the application and all required documents are attached. Be sure to save the application and then hit “Submit”.

  • Q13. When must I submit my loan forgiveness application?
  • A13. You may submit your loan forgiveness application at any time after the end of the applicable Covered Period. If a Borrower does not apply for loan forgiveness within ten months after the end of the Covered Period, the PPP loan is no longer deferred, and the Borrower must begin making payments.

  • Q14. May I submit a loan forgiveness application prior to the end of the Covered Period?
  • A14. A Borrower may submit a loan forgiveness application prior to the end of the Covered Period if the Borrower has used all the loan proceeds for which forgiveness is being requested. If the Borrower applies for forgiveness before the end of the Covered Period and has reduced any employee’s salaries or wages in excess of 25%, the Borrower must account for the excess salary reduction for the full Covered Period.

  • Q15. What happens after I submit my application?
  • A15. Upon receipt of a fully completed application, the Bank has 60 days to perform a good faith review of the application and supporting documents, and decision the forgiveness request. If the Bank identifies any errors or material lack of substantiation in the supporting documents, it will send the application back to the Borrower within the Portal, and work with the Borrower to remedy the issues. Once the Bank has approved the request for forgiveness, in whole or in part, the Bank will submit the request to the SBA for payment. The SBA has 90 days to review the application and remit funds. The Bank will notify the Borrower of any amount paid by the SBA.

  • Q16. Will the SBA review my loan forgiveness application?
  • A16. The SBA may review any PPP loan of any size at any time in its discretion. If the SBA undertakes such a review, the SBA will notify the Bank and the Bank in turn will notify the Borrower. The Bank must comply with all requests for information within five business days of receipt of a notice of loan review by the SBA.

  • Q17. Do I have to make payments on my loan until the amount forgiven is paid?
  • A17. As long as a Borrower submits a loan forgiveness application within ten months of the completion of the Covered Period, the Borrower is not required to make any payments until the forgiveness amount is paid by the SBA to the lender.

  • Q18. What happens if my loan is 100% forgiven?
  • A18. If a loan is 100% forgiven, the SBA will remit funds to pay the loan in full.  The Borrower will not be responsible for any payments.  As the SBA can review loans at any time, you should maintain all documentation related to your PPP loan and forgiveness request for at least 5 years.

    Please be aware that the SBA will deduct the amount of any Emergency Injury Disaster Loan (“EIDL”) advance from the forgiveness amount.  Even if the PPP loan is approved in full, the Borrower is responsible for repayment of the EIDL advance amount. 


  • Q19. What happens if only a portion of my loan is forgiven, or my request for forgiveness is denied?
  • A19. If only a portion of the loan is forgiven, if the forgiveness application is denied, or the forgiveness amount is reduced by the amount of an EIDL advance, any remaining balance due on the loan must be repaid by the Borrower on or before the maturity date of the loan.  Payment in full can be made at any time prior to maturity. Otherwise, the note may be modified to amortize the unpaid balance over the remaining term.  Interest accrues from the time of disbursement and when the SBA remints any amount of forgiveness.  The Borrower is responsible for paying all accrued interest on any loan amount not forgiven.    

  • Q20. I am having trouble navigating through the portal, uploading documents, and submitting my request?
  • Often times these issues can be addressed with these items: (i) be sure you are using Chrome, (ii) be sure that all required information (denoted with an asterisk) is completed, and (iii) be sure to save all information before attempting to submit. Please also be aware that once the application has been submitted to the Bank for review, the Bank must send it back to the Borrower before any changes can be made or additional documents uploaded. If you continue to have navigation issues, please contact your relationship manager, or email us at PPPforgiveness@hickorypointbank.com.

  • Q21. Can I give access to the portal to my CPA or other advisors/individuals?
  • Borrowers can add an email address in the Additional OTP Email field in the portal – see below.

      If the additional email address is added that individual will be able to access the portal using your business legal name and TIN credentials and will receive the OTP password email.


  • Q22. What is the Alternative Payroll Covered Period?
  • Borrowers with a bi-weekly (or more frequent) payroll cycle may elect to use the Alternative Payroll Covered Period which will begin on the first day of the first payroll cycle in the Covered Period and continues for either (i) eight weeks, in the case of a borrower that received its PPP loan before June 5, 2020 and elects to use an eight-week Covered Period, or (ii) 24 weeks, in the case of all other borrowers.   The Alternative Payroll Covered Period only applies to payroll costs.

  • Q23. What is the required timing for non-payroll costs to be eligible for forgiveness?
  • A non-payroll is eligible for forgiveness if it was paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period.

  • Q24. Should payroll or nonpayroll costs be prorated if incurred after the end of the Covered Period?
  • Only costs paid or incurred in the Covered Period (or Alternative Payroll Covered Period as it relates to payroll costs) are eligible for forgiveness.   Therefore, payroll or nonpayroll costs should be prorated to excluded costs incurred after the end of the Covered Period. As an example, let’s assume a borrower’s Covered Period ends on June 17th.  The next regularly scheduled pay date for the borrower is June 26th and covers the two-weeks between June 8th and June 19th.  Only the payroll incurred between June 8th and June 17th can be included so long as it is paid on the next regularly scheduled pay date (June 26th). The payroll incurred on the two days after the end of the Covered Period (June 18th and 19th) cannot be included.

  • Q25. Are there caps on the amount of loan forgiveness available for owner employees and self-employed individuals’ own payroll compensation?
  • The SBA has instituted caps on owner compensation, as follows.
    • For borrowers that received a loan prior to June 5, 2020 and elect to use an eight-week Covered Period, the amount loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at eight weeks’ worth (8/52) of 2019 compensation, or $15,385 per individual, whichever is less, in total across all businesses.
    • For all other borrowers, the amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at 2.5 months’ worth (2.5/12) of 2019 compensation, or $20,833 per individual, whichever is less, in total across all businesses.
    • It should be noted that owner-employees with less than 5% ownership stake in a C- or S-corporation are not subject to the owner-employee compensation rules.

  • Q26. Are there any restrictions on rent/lease payments to related entities?
  • Rent payments to a related party are eligible for loan forgiveness, so long as (i) the amount of loan forgiveness requested on rent/lease payments to a related party is not more than the amount of mortgage interest owed on the property during the Covered Period that is attributable to the space being rented by the business, and (ii) the lease and mortgage were both entered into prior to February 15, 2020.  Any ownership in common between the business and the property owner is considered a related party.  The borrower must provide the lender with mortgage interest statements/documentation to substantiate the payments.  A copy of the lease agreement should also be provided.

  • Q27.  Are employer contributions for health insurance for individuals with at least 2% ownership in a S-corporation eligible for forgiveness?
  • Employer contributions for health insurance for individuals with at least 2% ownership are included in that individuals cash compensation.   Therefore, the employer contributions for health insurance are not eligible for additional forgiveness to the extent that total cash compensation is capped at $15,385 for an 8-week covered period or $20,833 for a 24-week covered period.