Banner SBA CARES Loan Program 

The “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act” was signed into law on December 27, 2020. The legislation includes additional eligible forgivable PPP loan expenses, makes several previously ineligible business types eligible to apply for a PPP loan before March 31, 2021, and streamlines the loan forgiveness process for loans of $150,000 or less.
Busy business lobby

SBA CARES PPP Loan Program Information

The SBA announced it will begin accepting applications for first-time and second PPP loans. Applications are now being accepted.

For more information, please click the links or continue scrolling down the page.

FORGIVENESS

We temporarily closed our forgiveness application portal until we have updated applications from the SBA for the new streamlined application process for loans less than $150,000.

 

HELPFUL LINKS

SBA updated guidelines and calculations for PPP loans, and new guidance for Second Draw loans.

  • Who can apply for a PPP loan through Banner Bank?
  • Am I eligible to apply for a PPP loan?
  • When can I apply?
  • How much can I borrow?
  • What are the terms and conditions of the PPP loan?
  • What documents will I need to include in my application?
  • Can I apply funds from a PPP loan for any aspect of my business?
  • What counts as payroll costs?
  • What time period should I use to determine number of employees and payroll costs to calculate my maximum loan amount?
  • I understand employee compensation is capped at an annual salary of $100,000. Does this exclusion apply to all employee benefits of monetary value?
  • Do PPP loans cover paid sick leave?
  • Will payments made to an independent contractor or sole proprietor be included in payroll costs calculations?
  • What do I need to certify?
  • Can I get both an Economic Injury Disaster Loan (EIDL) and a PPP loan?
  • Can I use an EIDL loan to cover the same expenses as a PPP loan?
  • What happens if I already have an SBA loan?
  • Where can I find more information on PPP Loan Application and/or Forgiveness?
  • How can I reach Banner Bank with further questions?

First Time Applicant Resources

Please review the content on this page to determine eligibility for a PPP loan. If you wish to apply for a loan, please contact your relationship manager, branch or call us.  Applications for first-time applicants are now being accepted.  Due to anticipated application volume, Banner Bank will accept PPP loan applications from existing Banner Bank and Islanders Bank clients (as of December 31, 2020) with active business checking accounts into which the loan proceeds may be deposited. Additionally, the name associated with the checking account must match the name of the business receiving the loan. If you do not currently have a business checking account with Banner Bank, we encourage you to contact your primary financial institution.
You may be eligible for a PPP loan if:
  • You, together with any affiliates (if applicable) are:
    • A small business as defined by the SBA
    • An independent contractor, eligible self-employed individual or sole proprietor
    • A business concern, including organizations structured as a 501(c)(3), tax-exempt veterans organizations structured as 501(c)(19), a Tribal business and you employ no more than 500 employees
    • A chamber of commerce structured as a 501(c)(6), housing cooperative structured as a 501(c)(3), or eligible destination marketing organization that employs no more than 300 employees
    • A news organization that is majority owned or controlled by a newspaper publisher or radio and television broadcasting business or a nonprofit public broadcasting entity with a trade or business of the same type that employs no more than 500 employees and certifies it will use the funds for their entities that provide locally-focused news and emergency information
    • Electric cooperatives are eligible
    • Destination marketing organizations may be eligible. Eligible organizations must expend no more than 15% of activities on lobbying activity, incur no more than 15% of its expenditures on lobbying activity which cannot exceed $1 million in the most recent tax year prior to February 15, 2020, and employs no more than 300 employees.
    • Another type of entity specifically provided for by PPP rules. Refer to the SBA guidance for additional information about eligible business types, beginning on page 13 on the Interim Final Rule published on January 6, 2021; and
  • You were in operation on February 15, 2020 and had employees for whom you paid salaries/taxes or paid independent contractors (fishing enterprises that pay their crew as independent contractors), as reported on Form 1099-MISC, or you were an eligible self-employed individual, independent contractor or sole proprietor with or without employees.

Partnerships are eligible for a PPP loan (as amended by the Economic Aid Act) but partners in the partnership may not submit separate applications indicating they are self-employed individuals. Partnerships, in this scenario, would report self-employment income of the general active partners as a payroll cost, up to $100K on an annualized basis.

The US. Small Business Administration (SBA) opened their systems to first-time and Second Draw PPP loan applications on Tuesday, January 19. Banner Bank is now accepting new PPP loan applications.

The maximum loan amount is the lesser of 2.5 times your monthly payroll or $10 million.

NAICS codes starting with 72 can borrow 3.5 times your average monthly payroll. These organizations may choose to use calendar year 2019, 2020, or a rolling 12-months to calculate the average monthly payroll for the 12-month period.

Farmers/rancher can borrow 2.5 times annual gross revenues (limited to $100,000) in addition to 2.5 times average monthly payroll.

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. The maturity is five years.

You will need to provide business and payroll documentation to validate your loan application amount. You should be prepared with the following information:

  • Annual Revenue
  • Tax Identification Number (TIN)
  • Employee & Payroll Information
  • Business Address & Contact Information
  • Owner Social Security Number (SSN) & Contact Information
  • ACH Information including Bank Name & Account Number
  • Income Tax Information
  • Beneficial Ownership Information

You should also be prepared to provide copies of the following documents:

  • Driver’s License
  • Social Security Card
  • Copy of a voided check
  • Form 941
To be eligible for forgiveness consideration, the SBA requires at least 60% of the loan to be used toward payroll. Up to 40% of the loan may be used for eligible non-payroll expenses. For maximum forgiveness opportunity, utilize the loan proceeds as follows:
  • Payroll costs, including benefits - at least 60% of the PPP loan proceeds need to be used for payroll costs;
  • Interest on mortgage obligations, but not mortgage prepayments or principal payments;
  • Rent payments;
  • Utility payments;
  • Operations expenditures, supplier costs, worker protection expenditures, and property damage costs in the event you had to make repairs resulting from civil unrest that were not otherwise covered by insurance.
Additional details regarding eligible payroll and non-payroll expenses can be found beginning on page 48 of the SBA Interim Final Rule guidance.
  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
You can calculate your aggregate payroll costs using data either from the previous 12 months or from calendar year 2019 or for specific months of 2020. You may use your average employment over the same time periods to determine your number of employees, for the purposes of applying an employee-based size standard. Alternatively, you may elect to use SBA’s usual calculation: the average number of employees per pay period in the 12 completed calendar months prior to the date of the loan application (or the average number of employees for each of the pay periods that the business has been operational if it has not been operational for 12 months).
No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits.
Yes. PPP loans cover payroll costs, including costs for employee vacation, parental, family, medical, and sick leave. However, the CARES Act excludes qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127). Learn more about the Paid Sick Leave Refundable Credit
No. Any amounts paid to an independent contractor or sole proprietor should be excluded from payroll costs.

As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You will provide documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Not more than 40% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that Banner Bank will calculate the eligible loan amount using the tax documents you submit. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that Banner Bank can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

It is possible, if your business meets new criteria for EIDL loans. The legislation permits certain EIDL loan recipients to also apply for a PPP loan. EIDL Advances were modified with the new legislation in that they:

  • Provide additional funding for entities located in low-income communities through the EIDL Advance program
  • Make entities in low-income communities that received an EIDL Advance under the CARES Act eligible to receive an amount equal to the difference of what the entity received under the CARES Act and $10,000, if there is a difference.
  • Provide $10,000 grants to eligible applicants in low-income communities that did no previously obtain grants because the funding was no longer available.
EIDL loans used for the same purpose, if received, will need to be refinanced into the PPP, except for any EIDL Advance you receive, which will not require repayment. 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.

The SBA will automatically make principal, interest and fee payments on behalf of all current 7a, 504 and microloans for a period of 3 months, beginning February 2021, capped at $9,000 per borrower per month. This may be extended by an additional 5 months for certain underserved borrowers. The SBA will also automatically pay the first 6 months of principal, interest and fees for new 7a, 504 and microloans approved between February 1 and September 30, 2021, also capped at $9,000 per month.

After the three-month period described above, borrowers considered to be underserved—namely the smallest or hardest-hit by the pandemic—will receive an additional five months of P&I payments, also capped at $9,000 per borrower per month. They include:

  • Borrowers with SBA microloans or 7(a) Community Advantage loans
  • Borrowers with any 7(a) or 504 loan in the hardest-hit sectors, as measured by the severity of sector-wide job losses since the start of the pandemic. They include food service and accommodation; arts, entertainment and recreation; education; and laundry and personal care services.
You can find the official SBA Paycheck Protection Program information page here and the latest IFR and FAQ here. The SBA makes regular updates to their guidance and the referenced FAQ. This lending institution is providing a basic version of the FAQ for ease of use on behalf of the borrower. If there is any discrepancy between information found on this lending institution’s FAQ and the SBA FAQ, the SBA document should be taken as the source of truth.

For additional support, email us at: BannerPPPApplicationSupport@bannerbank.com

Or call us at: 800-272-9933 (Monday-Friday 7am-7pm)

  • Who can apply for a "Second Draw" PPP loan?
  • How much can I borrow?
  • When can I apply for a Second Draw PPP loan?

Second Draw Applicant Resources

We are preparing the Banner Bank Business Loan Portal to accept applications as soon as SBA activates the Program. Clients with existing PPP loans can sign in to the Portal at any time to confirm your credentials are active. If you need to set/reset your Portal credentials, watch this demo.

The SBA details eligibility requirements beginning at the bottom of page 5 in its Interim Final Rule. Applications for Second Draw applicants are now being accepted. The eligibility for borrowers interested in a second PPP loan is narrower than for first-time applicants. Key among the eligibility requirements are:

  • You must have used, or will use, all the funds from the first PPP loan by the time the Second Draw loan proceeds are dispersed (including any amount of increase on First Draw PPP loans on authorized expenses)
  • You have no more than 300 employees (unless you meet other criteria noted in the Program rules)
  • You experienced at least a 25% revenue reduction in at least one quarter of 2020 compared to the same time period in the prior year. There are provisions for businesses that were not operational during the entirety of 2019. 
The Second Draw PPP loan is the lesser of 2.5 months of your average monthly payroll costs or $2 million. However, it is important to note that the maximum total for your initial and Second Draw loans may not be more than $10 million, combined.
The US. Small Business Administration (SBA) opened their systems to first-time and Second Draw PPP loan applications on Tuesday, January 19. Banner Bank is now accepting new PPP loan applications.
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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.

Have questions? Contact your Banner Bank relationship manager or a Banner SBA lending specialist.

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 & Northern California

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

San Diego

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

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