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 PPP loan applications. If you applied for a PPP loan through us, we will notify you if your loan is approved. If you have a Banner Bank PPP loan, we will contact you about how to apply for loan forgiveness when you are eligible to apply. 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.

Borrower(s) who wish to withdraw their application(s), or return funds, should contact us.
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Frequently Asked Questions

What are the terms and conditions of the PPP loan?

The interest rate of this loan is 1%. There are no fees or costs with this loan and no personal guarantees or collateral are required. For loans approved on or after June 5, 2020, the amortization schedule is five years. For loans approved prior to this date, the amortization schedule is two years unless mutually agreed by the borrower and Banner Bank.

 

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

No. The SBA requires at least 60% of the loan to be used toward payroll expenses as one of the conditions to qualify for full forgiveness. Up to 40 percent of the loan may be used for eligible non-payroll expenses such as business rent, mortgage interest and utilities.

 

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.
  • Any loan payments made after March 27, 2020, can either be returned or applied to the loan balance.

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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