CARES Act SBA Paycheck Protection Program–Program Extension

First Financial Bank is participating in the Paycheck Protection Program.  With the passage of the additional PPP funding, we are once again taking applications for EXISTING First Financial Business Loan and Business Deposit customers who have accounts opened prior to April 1, 2020. 

We expect that the second allocation of funds will be quickly disbursed. Funds available under this program will be limited and may be exhausted before your loan application can be fully processed.

All of the below hardship relief options are being offered subject to applicable laws, regulatory requirements, and investor guidance. We will update these options as updates to requirements are made. 

Please note: if you submitted an application prior to the first round of CARES Act SBA PPP funding running out on April 16, 2020 and you did not receive funds, you do not need to submit another application.  A banker will be in touch regarding next steps with regard to your in-process application shortly.

Current First Financial Customers may start the loan application process by clicking on the Apply button below. 

PLEASE READ THESE INSTRUCTIONS PRIOR TO STARTING THE PROCESS.

1. You will be directed to complete the Paycheck Protection Application.  Additional information about the application can be found HERE.

2. Please ensure all required documents are handy prior to beginning the application process.  The application may time out if left unattended for more than 60 minutes and the process will need to start over.

3. You will be asked to upload ONE of the payroll validation documents listed below:

  • Payroll processor records
  • Payroll tax filings (typically IRS forms 944 or 941)
  • Form 1099-MISC (for independent contractors)
  • Income and expense report for a sole proprietorship

Please also upload ONE of the following business documents:

  • Operating agreement 
  • Corporate bylaws 
  • A Borrowing resolution 
  • Your most recent K1s

4. You will need to upload a photo of the front and back of your driver’s license. 

5. After you have completed the application, uploaded the appropriate payroll information and your driver’s license, you should hit the submit button.

6. After you submit your application, you will receive an email to confirm your email address which will allow you to finalize your signature.  If you do not receive the email, please check your spam folder. 

Upon completion of the application process, your application will be assigned to a First Financial banker who will reach out to you to complete the process. PLEASE NOTE: the demand for this program is extremely high, and it may take up to five days for you to be contacted. We are working as quickly as we can and hope it will be sooner. 

CARES Act SBA
Paycheck Protection Program Eligibility:

 

Please note: we are currently only accepting applications for First Financial Business customers. 
  • You are a small business (including sole proprietorships, independent contractors and eligible self-employed individuals), a nonprofit as described in section 501(c)(3) of the IRS Code that is exempt from taxation under section 501(a) of the Code, a veterans' organization (501(c)(19) or a tribal concern.

  • You were in operation on 2/15/2020 and paid salaries and payroll taxes or paid independent contractors (reported on a 1099).

  • You employ 500 or FEWER employees OR your business is an industry that has an employee-based size standard through SBA that is higher than 500 employees.  If you are a restaurant, hotel or business that falls in the SBA NAISC code 72 – Accommodation and Food Service and each of your locations has 500 employees or fewer, you are also eligible.
     
  • Nonprofit organizations are subject to the SBA’s affiliation standards. Independently owned franchises with under 500 employees, who are approved by SBA, are also eligible. Eligible franchises can be found through SBA’s Franchise Directory.

For more information, listen below to First Financial Bank's CARES Act SBA Paycheck Protection Program webinar, recorded April 9, 2020. You'll learn about program highlights and hear responses to questions from webinar participants.

Program highlights:

 

  • Forgivable loans covering 2 ½ months of payroll costs up to $10 million.

  • Interest rate of 1% fixed for the life of the loan.

  • Program duration: covers a period from 2/15/2020 to 6/30/2020.

  • SBA upfront guaranty fee is waived for this program (regular 7a loans do not have any waiver).

  • The term of the loan is two years (this applies toward any balance that is not forgiven).

  • Loan payments deferred no less than six months. No collateral required.

  • No personal guaranty required.*

*If loan proceeds are used for purposes not authorized by the law, the government will have recourse against a shareholder, member. or partner of a borrower.

Loan forgiveness highlights:

 

  • Payroll costs.

  • Interest payments on any covered mortgage obligation (excludes any prepayment or payment of principal).

  • Payments on covered rent obligations.

  • Any covered utility payment.

The loan will cover these items for the eight week period after the loan is disbursed and 75% of the proceeds must be used for payroll expenses.

The SBA requires borrowers to assess their economic need for a PPP loan and to certify in good faith that their PPP loan request is necessary taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to their business. Additional SBA loan forgiveness guidance is available here

If you have received a PPP loan from FFB and have questions, including about how forgiveness works, please review our FAQ document below.  If you do not find an answer to your specific question(s) in this FAQ, please note that SBA and Treasury will be releasing additional guidance in the days and weeks ahead.  We invite you to participate in this process by sending your question(s) to SBAforgivenessquestions@bankatfirst.com.  While we may not be able to provide an answer right away, it will give us the opportunity to share your question(s) with SBA and Treasury.

SBA Economic Injury Disaster Loan and Loan Advance

The SBA Economic Injury Disaster Loan and Loan Advance is a direct application process that can be found here. The SBA is being inundated with applications for this program and is processing as fast as possible. Be aware that clients using this program can expect delays. More information on this process is available here.

Payment Relief for Current First Financial SBA Loan Clients

First Financial Bank is offering deferment on many loan payments, which provides support and relief to our existing SBA Loan clients. In addition, the CARES Act Small Business Administration (SBA) Debt Relief Program provides relief for existing SBA loan holders. Six consecutive monthly payments will be made by the SBA, beginning with the April payment. These SBA payments will be made on the client’s behalf and there is no expectation for the client to repay them. Current First Financial SBA (7a) loan clients will receive a letter detailing the relief provided to them. Please refer to the letter you receive for complete details. Answers to frequently asked questions about this program are available here.

Frequently Asked Questions

Please note: This information applies to First Financial Bank processing and is not to be relied on for legal or tax advice.

APPLICATION

  • CARES Act SBA Paycheck Protection Program (PPP)

    Will CPA’s be able to input PPP applications for me as my Agent?

    We are not considering using agents at this time, but this is subject to change. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    What specific information will I need to provide when applying for PPP?

    1) SBA Form 2483 (PPP Application); 2) Operating agreement, corporate bylaws, a borrowing resolution or most recent K1s; and, 3) Payroll records. The information is also available on our website.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can my banker “apply” and start the process for me?

    Unfortunately, no. The business must complete the process in order to make applicable certifications and since e-signatures are being used. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Will there be a link on the FFB site so that I can go directly there to apply?

    When we are taking applications, there will be a link to the application for current business clients.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Is there a checklist that I can utilize to help prepare for what I need to get together?

    Yes, this is on our website.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are there paper applications?

    No, we use an electronic application.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Will there be a Spanish version of the application online?

    No.

  • CARES Act SBA Paycheck Protection Program (PPP)

    On the application, there are only two spots for beneficial owners, what if I have more than two beneficial owners?

    Additional owner details should be included as an attachment. 

ELIGIBILITY

  • CARES Act SBA Paycheck Protection Program (PPP)

    As of what date would I be considered an “existing client” in order to apply?

    The business needs to be a business client and have an open FFB account, active prior to April 1, 2020. The account can be either a business deposit or business loan. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    I am not an FFB business client, will you accept an application from me?

    We are not currently accepting applications from non-clients. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can essential businesses that are still open but losing sales/income qualify?

    Yes, subject to other eligibility requirements. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can I qualify if there is no “payroll” logged for 2019? For example, a business has 2 partners, and they pay themselves by writing a check from the business rather than having true ‘payroll.’

    Yes, the self-employment income of general active partners may be reported as a payroll cost on an application filed on behalf of the partnership. When calculating payroll costs for PPP loan amounts and/or forgiveness, there are limits on owner compensation replacement. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    If I am in a partnership, should I apply individually as a self-employed individual?

    No. Partnerships can apply for one loan on behalf of the partnership. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    If I applied for an Economic Injury Disaster Loan (EIDL) on the SBA website, am I still eligible to apply for a PPP?

    If you have applied for an EIDL prior to April 3, you are still eligible and may be eligible to apply with us for the CARES Act Payment Protection Program loan.   

  • CARES Act SBA Paycheck Protection Program (PPP)

    If my bank is not participating in the CARES Act Paycheck Protection Program, can I apply directly online with the SBA?

    The CARES Act PPP loans are only facilitated through banks and other qualified institutions and not directly with the SBA. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    If I have multiple companies, can each of them apply for a PPP loan?

    Generally, yes. Each entity can apply separately as long as they have separate tax ID numbers and have their own employees to calculate payroll costs. These entities will be subject to affiliate and size limitations for the PPP.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are sole-proprietorships and self-employed individuals eligible?

    Yes, if (i) you were in operation on February 15, 2020; (ii) you were an individual with self-employment income; (iii) your principal place of residence is in the U.S.; and (iv) you filed or will file a Form 1040 Schedule C for 2019. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are 501(c)(3) churches eligible?

    Yes. Please refer to our website and links provided there for additional details. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can I get an SBA Economic Injury Disaster Loan and a PPP Loan?

    Generally, no, unless it is for a different purpose (use of funds) or obtained prior to the PPP application date. Please consult an advisor or the SBA with specific circumstances.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Have SBA affiliation rules been waived for all businesses?

    No, the SBA affiliation rules are waived only for certain businesses. Please consult an advisor or SBA with specific circumstances. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    What if my business is seasonal or has not been open for a full year?

    A seasonal or new business may use an alternate calculation to determine payroll costs.  Seasonal businesses may use (a) a 12 week period between February 15, 2019, or March 1, 2019 and June 30, 2019, or (b) a 12 week period between May 1, 2019 and September 15, 2019. An applicant that was not in business from February 15, 2019 to June 30, 2019 may use the average monthly payroll costs for the period from January 1, 2020 through February 29, 2020. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are 501(c)(6), country clubs, or private clubs eligible?

    No.

  • CARES Act SBA Paycheck Protection Program (PPP)

    If I show a yearly loss am I eligible for PPP Loan?

    Please consult an advisor or SBA with your specific circumstances. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    If I receive a PPP Loan, can I also apply for a regular SBA 7(a) Loan?

    Yes, if the use of proceeds is different from your PPP Loan. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Am I eligible as a farmer?

    Yes, subject to other program requirements. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are clients required to have 500 or fewer employees to be eligible for PPP?

    No, but they must meet other criteria. Please reach out to your banker for specific details. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    If I pled guilty to a felony crime a long time ago, am I eligible?

    No, if the business has an owner that is  presently incarcerated, on probation, on parole or subject to an indictment, criminal information, arraignment or other means or has any felony, been convicted, pled guilty is ineligible. Seek additional bank guidance if you are not sure. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Do businesses owned by private companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

    In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “current economic uncertainty makes this loan request necessary to support the ongoing operation of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification. Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 18, 2020 will be deemed by SBA to have made the required certification in good faith. If you have additional questions you may wish to consult an attorney. 

LOAN DETAILS

  • CARES Act SBA Paycheck Protection Program (PPP)

    When does the interest start accruing?

    When the loan is funded. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Will the interest rate and term be set at time of application?

    All loans will be set with an interest rate of 1% fixed rate and will have a 24-month term. Any amount not forgiven must be repaid within 24 months. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Do I need collateral on the PPP loan?

    The loan does not require collateral.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can I prepay any balance that is not forgiven?

    Yes, there are no prepayment penalties. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Does 2.5x the loan amount apply to just payroll costs or does it include rent, utilities, and mortgage payments?

    The loan amount calculation is based off payroll costs.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can I refinance an SBA EIDL Loan with a PPP?

    Yes, if you received an SBA EIDL loan from January 31, 2020 through April 3, 2020, you can apply for a PPP loan.  You have the option to refinance an EIDL into your PPP loan.  If your EIDL was used for payroll costs, your PPP loan must be used to refinance your EIDL. Any proceeds from any EIDL advance up to $10,000 will be deducted from the loan forgiveness amount. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are 1099 employees included in calculations?

    Most 1099 compensated individuals are independent contractors or self-employed and can apply for a PPP loan on their own. For further information on the distinction for a particular situation, please visit the IRS website. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Does the PPP Loan require an owner guaranty?

    No; however, SBA does reserve the right to pursue fraud charges if proceeds are used for unauthorized purposes. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    What is the measurement period for average monthly payroll?

    2019 payroll information should be used for most companies. Current guidance states this needs to be information that has been provided to the IRS. Seasonal and new businesses started in 2020 may use an alternate calculation available.  

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are there loan/guaranty/origination fees on PPP Loan?

    There are no fees paid by the borrower to access this program. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Are benefit costs and payroll taxes included in payroll costs?

    Yes, as clarified by SBA.

  • CARES Act SBA Paycheck Protection Program (PPP)

    If a client uses a PEO or payroll provider, how are payroll costs calculated?

    The client may use records from these companies. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Should I include federal taxes in my payroll cost calculation?

    Yes, taxes imposed on an employee and required to be withheld by the employer can be included. The employer-side federal payroll taxes are excluded. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    How will a client be notified that the loan is ready to be closed?

    A banker will notify the client of the closing process. We will be utilizing e-signatures. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    What will a client need to do to close the loan?

    The following will be needed and provided to the banker: 

    1. Account funding information
    2. Date of signing authority

    If a client choses to sign the loan documents with a wet signature, it could delay how quickly the loan is closed and funded. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Why doesn’t a client’s business partners need to sign the loan documents?

    Since the signer on the loan documents is authorized to sign on behalf of the business, this provides the authority needed to bind the business. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Why is a client closing electronically on this type of loan?

    The electronic closing process facilitates an expedited closing process. Furthermore, it avoids any requirement for you to return physical documents or go to a bank branch. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can a single corporate group receive unlimited PPP loans?

    No. Businesses that are part of a single corporate group shall in no event receive more than 

    $20,000,000 of PPP loans in the aggregate.  For purposes of this limit, businesses are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent. This limitation is effective with respect to any loan that has not yet been fully disbursed as of April 30, 2020. 

    It is the responsibility of an applicant for a PPP loan to notify the First Financial Bank if the applicant has applied for or received PPP loans in excess of the amount permitted and withdraw or request cancellation of any pending PPP loan application or approved PPP loan not in compliance with the limitation. Failure by the applicant to do so will be regarded as a use of PPP funds for unauthorized purposes, and the loan will not be eligible for forgiveness.  

    Businesses are subject to this limitation even if the businesses are eligible for the waiver-of affiliation provision under the CARES Act or are otherwise not considered to be affiliates under SBA’s affiliation rules.   

    For questions related to this limitation, please consult your advisor. 

FORGIVENESS

  • CARES Act SBA Paycheck Protection Program (PPP)

    The amount of forgiveness depends upon what loan funds are spent on over an 8 week period. When does the 8 week period begin?

    The 8 week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower.  

  • CARES Act SBA Paycheck Protection Program (PPP)

    What eligible items are considered forgivable expenses in the CARES Act SBA PPP?

    Please refer to our Obtaining Forgiveness guidance. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    If the owners take distributions from the business, can that be counted as payroll for forgiveness calculations?

    The program does not allow for distributions to be part to the payroll calculation or for forgiveness. There are specific calculations related to owner compensation replacement. Please refer to our Obtaining Loan Forgiveness guidance. 

OTHER

  • CARES Act SBA Paycheck Protection Program (PPP)

    What is the application processing order of the Program?

    Funds are distributed on a first-come, first-served basis.

  • CARES Act SBA Paycheck Protection Program (PPP)

    Can I take member/partner draws or shareholder distributions?

    Please consult an advisor or SBA with your specific circumstances.

  • CARES Act SBA Paycheck Protection Program (PPP)

    What forms of identification can be used?

    First Financial Bank allows various government-issued IDs, including current State or U. S. Territory Driver’s License with picture, Military I.D. with picture, Government I.D. card for employees with picture, State I.D. with picture from State or U.S. Territory, Passport, U.S. Alien Registration Card, U.S. Passport Card, Global Entry I.D. Card and P-1 Visa. 

  • CARES Act SBA Paycheck Protection Program (PPP)

    Will SBA review individual PPP loan files?

    Yes, it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.