Banner SBA CARES Loan Program 

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.

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.