Banner SBA CARES Loan Program 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was originally signed into law on Friday, March 27, 2020, putting in motion needed financial relief in a variety of ways for those impacted by the pandemic. The Payroll Protection Program (PPP) is a loan designed to provide a direct incentive for small businesses to keep employees on their payroll. 

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SBA CARES PPP Loan Program

We are not currently accepting new applications. We are processing applications received through May 11, 2020. Please check back often as we will update this page when we begin accepting applications.

If you applied for a PPP loan through us, we ask for your patience. Allowing us to work without interruption gives the best ability to process the greatest number of loans. We will notify you if your loan is approved. Please contact your banker for additional information.

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Updated SBA Guidance Regarding Borrower Eligibility
Consistent with section 1102 of the CARES Act, the Borrower Application Form requires PPP applicants to certify that: “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations 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.

No action is required on this matter for loan recipients or applicants who acknowledge that their certification of need is accurate, keeping in mind the new guidance. For more information, please review the SBA Guidance. If you have questions about whether your loan application conformed to the SBA Guidance, we urge you to contact your own advisors.

Any borrower that applied for a PPP loan prior to the issuance of this regulation and repays the loan in full by May 17, 2020 will be deemed by SBA to have made the required certification in good faith. Borrower(s) who wish to withdraw their application(s), or return funds, should contact us.
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Paycheck Protection Program Details

Loan amounts are determined by a formula that has been to be established by the SBA as a multiple of 2.5x of average monthly payroll costs, up to a maximum loan amount of $10 million, plus employee benefits for U.S.-based employees. The formula excludes FICA and the portions of salaries for owners and employees making over $100,000 for the previous 12 months. The interest rate of this loan is 1%, two year fully-amortizing term with the first six months’ payments deferred. There are no fees or costs with this loan and no personal guarantees or collateral are required.

 

The PPP provides for potential loan forgiveness based on employee retention and salary levels. If your business has already laid off employees, the program is retroactive to February 15, 2020, in support of returning laid-off employees to your payroll.

 

Your business may be eligible if it meets the following criteria:

  • Businesses/entities in operation on February 15, 2020
  • Small businesses currently eligible for SBA lending that have 500 or fewer employees, along with non-profits, veterans’ and tribal entities, can qualify for the program
  • For any business in the accommodations and food services sector, the 500-employee rule is applied on a per physical location basis
  • Sole proprietors or independent contractors and eligible self-employed individuals
  • Affiliation rules are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Small Business Administration, any small business concern in the accommodations and food services sector, and any company that receives funding through a Small Business Investment Company
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Paycheck Protection Loan Application Requirements

To prepare for a PPP, businesses will need to gather the materials listed below to help us process your application as quickly as possible:

  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, Forms 1099-MISC, payroll and unemployment insurance filings, and income and expense from a sole proprietorship.
  • An authorized representative of your business or organization will be requested to certify, (form to be provided by Banner Bank), among other qualifications, that the documentation provided is true and correct, that the business has experienced an adverse impact due to the coronavirus pandemic, and that the business will use the loan proceeds to retain workers or make mortgage, lease, and utility payments.
  • If your loan is approved, the loan proceeds will be deposited into your current (or new) Banner Bank Business Checking account.
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Existing SBA Borrowers
  • The SBA will automatically make principal, interest and fee payments on behalf of all current 7a, 504 and microloans for a period of 6 months. The SBA will also automatically pay the principal, interest and fees of new 7a, 504 and microloans originated prior to September 27, 2020.
  • Any loan payments made after March 27, 2020, can either be returned or applied to the loan balance.
  • Any loan made before March 27, 2020 for which a deferment has been granted will still be eligible to receive the benefit of SBA making the loan payments for a 6-month period. The 6-month period of SBA payments will begin at the end of the deferment period.
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Frequently Asked Questions

How long will it take to process my application?

We are working quickly to process applications. Please know that we are aware of how important it is for you to receive funds to assist your business as soon as possible and we are working hard for you. 

 

Is my business eligible for Paycheck Protection Program funds?

Your business may be eligible if it meets the following criteria:

  • Businesses/entities in operation on February 15, 2020
  • Small businesses currently eligible for SBA lending that have 500 or fewer employees, along with non-profits, veterans’ and tribal entities, can qualify for the program
  • For any business in the accommodations and food services sector, the 500-employee rule is applied on a per physical location basis
  • Sole proprietors or independent contractors and eligible self-employed individuals
  • Affiliation rules are waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Small Business Administration, any small business concern in the accommodations and food services sector, and any company that receives funding through a Small Business Investment Company

 

What can PPP funds be used for?

PPP funds can be used for payroll expenses, returning employees from furlough back to active on the payroll, most mortgage interest, other business interest expenses, rent and utility costs after. Employee compensation levels must be maintained. If your business has already laid off employees, the program is retroactive to February 15, 2020, in support of returning laid-off employees to your payroll.

 

How much can I get in PPP funding?

Loan amounts are determined by a formula that has been to be established by the SBA as a multiple of 2.5x of average monthly payroll costs, up to a maximum loan amount of $10 million, plus employee benefits for U.S.-based employees. The formula excludes FICA and the portions of salaries for owners and employees making over $100,000 for the previous 12 months.

 

What are the terms and conditions of the PPP loan?

The interest rate of this loan is 1%, two year fully-amortizing term with the first six months’ payments deferred. There are no fees or costs with this loan and no personal guarantees or collateral are required.

 

Can I apply funds from a PPP loan for any aspect of my business?

No. The SBA requires an least 75% of the loan to be used toward payroll expenses.

 

Can I get both an Economic Injury Disaster Loan (EIDL) and a PPP loan?

Yes. You can obtain both an Economic Injury Disaster Loan (EIDL) and a PPP loan. EIDL loans are applied for directly through the SBA, not through us or other financial institutions.

 

Can I use an EIDL loan to cover the same expenses as a PPP loan?

EIDL loans used for the same purpose, if received, will need to be refinanced into the PPP. You’ll want to use any PPP loan funds you receive as intended, and use proceeds from the EIDL for other expenses not covered by the PPP loan to maximize your opportunity for debt forgiveness.

 

What happens if I already have an SBA loan?

The SBA will automatically make principal, interest and fee payments on behalf of all current 7a, 504 and microloans for a period of 6 months. The SBA will also automatically pay the principal, interest and fees of new 7a, 504 and microloans originated prior to September 27, 2020. For SBA loans obtained through Banner Bank, we will discontinue automatic ACH payment processing during this timeframe.

Download important information about PPP loan forgiveness criteria:

Have questions? Contact a Banner Business Banking expert for assistance.

Seattle Metro Area

Robin Dode
206-298-2030
robin.dode@bannerbank.com

Spokane & Idaho

Tom Pool
208-772-1176
tom.pool@bannerbank.com

Los Angeles

Tricia Cruz
909-256-8686
tricia.cruz@bannerbank.com

San Diego

Monica Wolfe
951-719-1215
monica.wolfe@bannerbank.com

Portland/Vancouver Area

Scott Price
971-255-5637
scott.price@bannerbank.com

Northern California

Stephen Cairns
916-648-3461
stephen.cairns@bannerbank.com

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