Small Business Administration Support: COVID-19
FREQUENTLY ASKED QUESTIONS
FREQUENTLY ASKED QUESTIONS
As a Preferred Lender with the SBA, our experienced team of bankers stand ready to assist you in taking advantage of the current and future programs made available by the SBA. This includes support to current SBA loan holders, participation in existing programs such as the SBA Disaster Loan program and new programs, including the CARES Act SBA Paycheck Protection Program.
- 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.
- 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.
- 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.
Please note: This information applies to First Financial Bank processing and is not to be relied on for legal or tax advice.