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The Paycheck Protection Program for business owners

An important update

The United States capitol building on a sunny day. Washington D.C., U.S.A.

New federal legislation extends the Small Business Administration’s (SBA) deadline to approve new Paycheck Protection Program (PPP) loan applications from March 31 to May 31, 2021, or sooner if funding runs out. The legislation also enables the SBA to continue processing pending PPP loan applications for an additional 30 days after its May 31 deadline; however, lenders must complete processing and submit all applications to the SBA by May 31.

With this program extension, Bank of America is now accepting new applications for first-draw and second-draw PPP loans.

In order to provide the necessary time for processing loan applications prior to May 31, and as long as funding remains available: 

  • We will accept new PPP loan applications until 11 p.m. ET on May 14 
  • Applicants must provide all required supporting documentation (this does not include promissory notes) by 11 p.m. ET on May 24 in order for their loan application to proceed. If an applicant has already received from us an earlier deadline to submit required documentation, all documentation must be submitted by that earlier date.
  • We will discontinue all loan application processing at 11 p.m. ET on May 28 or when funding becomes no longer available, whichever comes first

Application process for sole proprietors, independent contractors and single-member LLCs

In March, the SBA released new guidance allowing sole proprietors, independent contractors and single-member LLCs that file an IRS Form 1040 Schedule C to use either gross income or net income in calculating the amount of their requested PPP loan.

Given the extension of the PPP application window, the possibility that federal funding may run out prior to the May 31 deadline, and the time required for us to process applications before submitting them to the SBA, please note:

  • Eligible sole proprietors, independent contractors and single-member LLCs who wish to apply for a first- or second-draw PPP loan using net income are welcome to apply at any time using our existing loan application, as long as we are accepting new applications
  • Eligible CashPro clients who would like to apply using gross income should engage their Relationship Manager.
  • We plan to launch a new PPP loan application in late-April for Business Advantage 360 clients, which will provide eligible sole proprietors, independent contractors and single-member LLCs who file a Schedule C the option to apply for a first- or second-draw PPP loan using gross incomeEligible clients can choose to wait and apply using gross income in late-April, although program funding is limited and may not be available at that time.

Our PPP Loan Forgiveness application is now available


Eligible clients can apply now for PPP loan forgiveness 

Our PPP loan forgiveness portal is now open and includes a simplified forgiveness application for PPP loans of $150,000 or less. We will email clients with a link to access our loan forgiveness application over the coming weeks, when the application becomes available to them.

Please note:

  • We will continue to process loan forgiveness applications for clients who previously submitted completed applications with all supporting documentation. Clients who wish to withdraw and apply using the simplified application process should notify us immediately. Once we submit a client’s application to the SBA, the client may be unable to withdraw it.
  • Clients who previously withdrew their application for loan forgiveness, or whose application was canceled due to incomplete documentation, are welcome to start a new application.

As a reminder:

  • You have until the maturity date of your loan to apply for forgiveness, as long as you have an outstanding balance on your PPP loan. This guidance applies regardless of the terms in your PPP Promissory Note.
  • You do not need to apply for loan forgiveness on your first PPP loan in order to be eligible for a second draw PPP loan. For details on eligibility and requirements for second draw PPP loans, please visit the  SBA website

These FAQs are provided for your convenience. Please be sure to understand and comply with the guidance issued by the SBA.

FREQUENTLY ASKED QUESTIONS

General

What is the Paycheck Protection Program (PPP)?
The Paycheck Protection Program is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow. The eligibility requirements are outlined for applicants on the U.S. Treasury and SBA websites.

For complete details, visit the SBA, U.S. Treasury Assistance for Small Business and U.S. Treasury FAQ websites.

How long will the process take from application to funding?
Your application will be processed as soon as possible and you'll be notified of your application status through email. We cannot provide this information through our Financial Centers or Contact Centers.

What counts as payroll costs?
Employee payroll costs consists of the following:

  • Compensation to employees (excluding compensation to employees whose principal place of residence is outside the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); excluding costs over $100,000 on an annualized basis, as prorated for the period during which payments are made or the obligation to make the payments is incurred, for each employee
  • Payment for vacation, parental, family, medical, or sick leave (except those paid leave amounts for which a credit is allowed under FFCRA Sections 7001 and 7003)
  • Allowance for separation or dismissal
  • Payment for the provision of employee benefits (including insurance premiums) consisting of group health care coverage, group life, disability, vision, or dental insurance, and retirement benefits
  • Payment of state and local taxes assessed on employee compensation

Owner Compensation for independent contractor or sole proprietor consists of wage, commissions, income, or net earnings from self-employment or similar compensation, not to exceed a total of $100,000 in annual compensation, on an annualized basis.

Will Bank of America pay fees to third-party agents who have assisted clients with the preparation of PPP loan applications?
In the absence of a pre-loan approval written agreement between the agent and Bank of America, Bank of America does not pay fees or other compensation to agents who represent or assist borrowers through the Paycheck Protection Program. 

Does Bank of America disclose the names of PPP borrowers? Was my name disclosed by the SBA – or will it be in the future?
Bank of America does not publicly disclose the names or other information of clients who receive PPP loans. To learn more about disclosures by the SBA of PPP borrower information, please visit the SBA website or www.sba.gov/foia.

First draw eligibility

How can I apply for a PPP loan at Bank of America?
If you are eligible and plan to apply for a first draw Paycheck Protection Program loan, you should note the following:

  • We will be accepting applications from clients that, as of 12/21/2020:
    • Have a Small Business or Business checking and Small Business or Business lending relationship with Bank of America (including commercial or corporate credit cards, conventional business loans or leases, business lines of credit, business auto loans, practice solutions loans and trade-and asset-based loans).
    • or

    • Have a Small Business or Business checking relationship with us and do not have a business credit or borrowing relationship with another bank.
  • At Bank of America, PPP will be administered online only
  • To apply, all clients must use CashPro, our digital banking solution.
  • After completing the application process, you will receive online confirmation of the submission
  • We will contact you with next steps
  • Do not proactively deliver or send documents to our Financial Centers
  • Loan application status will not be available through our Financial Centers or Contact Centers due to the nature of this loan process and the steps involved

Please visit the SBA website for the latest details on PPP, including program rules and requirements.

If you have already received a PPP loan through Bank of America, you may be eligible to apply for a second draw PPP loan.

CashPro® is a registered trademark of Bank of America Corporation in the United States and other countries.

Is there a deadline to apply for a PPP loan at Bank of America?
In order to provide the necessary time for processing loan applications prior to May 31, 2021 and as long as funding remains available:

  • We will accept new PPP loan applications until 11 p.m. ET on May 14
  • Applicants must provide all required supporting documentation (this does not include promissory notes) by 11 p.m. ET on May 24 in order for their loan application to proceed. If an applicant has already received from us an earlier deadline to submit required documentation, all documentation must be submitted by that earlier date.
  • We will discontinue all loan application processing at 11 p.m. ET on May 28 or when funding becomes no longer available, whichever comes first

I was declined or my loan application was cancelled during previous rounds of PPP. Can I reapply now that the window has reopened?

  • Yes, you may reapply so long as you are otherwise eligible for a PPP loan. For the most up-to-date information regarding PPP eligibility, please see the U.S. Treasury and SBA websites.

First draw preparing to apply

The name of my business has changed since January 1, 2020. Will that impact my loan application and the amount I am eligible for?
The application will be processed as long as the EIN/TIN of the business in the application is the same as EIN/TIN on the business’s supporting documentation.

First draw organizing documents

What documentation do I need to provide?
To prepare for the application process, you should review our Document Reference Sheet and the requirements listed on the U.S. Treasury and SBA websites.

I am a nonprofit. What documentation is permitted to support payroll costs?
Please refer to our Document Reference Sheet for a list of acceptable documentation.

Are wages paid to independent contractors or staffing companies (1099 wages) included in total payroll calculation?
No, 1099 wages paid to independent contractors and staffing companies should be excluded. If eligible, 1099 employees may apply for PPP on their own.

Please visit the SBA website for the latest details on PPP, including program rules and requirements

Can I use a W-2 as supporting Employee Payroll documentation without quarterly 941s?
No, W2s cannot be used as supporting Employee Payroll documentation without quarterly 941s. Please refer to our Document Reference Sheet for a list of all acceptable documentation.

Second draw eligibility and application

I have already received a PPP loan. Am I eligible to apply for a second draw PPP loan?
You may be eligible to apply via Bank of America if you:

  • Have applied for and received a previous PPP loan through Bank of America
  • Have no more than 300 employees
  • Have experienced a reduction in revenue by 25% or more
  • Have used or will use the full amount of the first PPP loan for eligible expenses on or before the date of disbursement

Please visit the SBA website for the latest details on PPP, including program rules and requirements.

Note: If you previously received a PPP loan through another lender, and wish to apply for a second draw PPP loan, you should submit your second draw application to that original lender.

For Borrowers who receive a first and second draw PPP loan in 2021, please note:

  • The Covered Period (i.e., the period in which you must use the PPP loan proceeds) for a first draw PPP loan and a second draw PPP loan cannot overlap. This means that the Covered Period of your first draw PPP loan must end on or prior to the date your second draw PPP loan is disbursed, and that you must have used the full amount of your first draw PPP loan (including any increase) on eligible expenses under the PPP rules before receiving your second draw PPP loan.
    • For example, if your second draw PPP loan was disbursed 9 weeks after your first draw PPP loan, the maximum Covered Period for your first draw PPP loan is 9 weeks. To be eligible for a second draw PPP loan, you will need to have spent the full amount of your first draw PPP loan on eligible expenses during that 9 week period following your first draw PPP loan disbursement.
  • Note that the minimum Covered Period is 8 weeks following the date of loan disbursement.
  • Please also note that employee compensation and owner replacement compensation must be prorated for the Covered Period.
    • Employee Compensation.  For an 8-week Covered Period, the maximum amount that can be forgiven is $15,385 ($100,000/52 weeks x 8 week Covered Period), for each individual employee. For a 24-week Covered Period, the maximum amount is $46,154 ($100,000/52 weeks x 24 week Covered Period), for each individual employee.
    • Owner Replacement Compensation. For an 8-week Covered Period, owner replacement salary is capped at (a) $15,385 ($100,000/52 weeks x 8 week Covered Period) or (b) the 8 week equivalent of the individual’s applicable compensation in the year that was used to calculate the loan amount (2019 or 2020), whichever was lower.  For a 24-week Covered Period, owner replacement salary is capped at (a) $20,833 (the 2.5 month equivalent of $100,000 per year), or (b) the 2.5 month equivalent of the individual’s applicable compensation in the year that was used to calculate the loan amount (2019 or 2020), whichever is lower.

How do I apply for a second draw loan?
If you are eligible and wish to apply for a second draw loan:

  • To apply, all clients must use CashPro or Business Advantage 360. You should use the same digital banking solution you used for your first loan.
  • After completing the application process, you will receive online confirmation of the submission.
  • We will contact you with next steps
  • Do not proactively deliver or send documents to our Financial Centers
  • Loan application status will not be available through our Financial Centers or Contact Centers due to the nature of this loan process and the steps involved

I received my first PPP loan from another lender. Can I apply for a second draw loan through Bank of America?
If you previously received a PPP loan through another lender, and wish to apply for a second draw PPP loan, you should submit your second draw application to that original lender.

Do I have to apply for forgiveness of my original loan in order to apply for a second draw loan?
No, your second draw PPP loan is not dependent on forgiveness being completed for your first loan.

If I have multiple owners and authorized signers associated with my eligible small business deposit relationship, can the second draw loan have a different signer?
All owners and authorized signers will have the ability to apply for the PPP Loan. However, only the first application will be processed.

Post application

What should I expect after I apply for a PPP loan with Bank of America?

  • After completing the application process, you'll receive an email confirming your submission
  • Your application will be processed as soon as possible and you'll be notified of your application status through email. We cannot provide this information through our financial centers or contact centers.
  • We'll contact you if any additional documentation is required. Applicants must provide all of the supporting documentation that the SBA requires for their application to proceed by 11 p.m. Eastern on May 24. If an applicant has already received from us an earlier deadline to submit required documentation, all documentation must be submitted by that earlier date.
  • Once we have processed and reviewed your completed application, we will submit it to the SBA for their decision. If the SBA assigns a loan identification number to your application, we will ask you to quickly complete required documents before we can take the additional steps to fund your loan.
  • You will receive an email once your promissory note is available for you to review and sign. We will communicate with you when we receive it, and when we anticipate funding the loan, typically 2-3 business days later.

How will I know if you received my loan application?
You will receive an email confirmation after you successfully submit the application, generally within 24 hours. It may take up to 24 hours for the system to process your application and generate the email.

Loan forgiveness

How does the Economic Aid Act, signed into law on December 27, 2020, change the process for Economic Injury Disaster Loan (EIDL) Advance deductions?
The Economic Aid Act repealed the deduction of EIDL Advances from loan forgiveness amounts. According to guidance from the SBA:

  • The SBA will no longer deduct EIDL Advances from forgiveness amounts remitted to lenders, effective on December 29, 2020.
  • For those loans where SBA has already deducted an EIDL Advance from a forgiveness remittance submitted to a lender, the SBA will automatically remit a reconciliation payment to that lender for the previously-deducted EIDL Advance amount, plus interest through the remittance date.
  • Bank of America will apply any reconciliation funds received from the SBA due to a previously-deducted EIDL Advance to the balance of the impacted PPP loan and communicate updated balance and payment information to the client.
  • To the extent you have repaid your outstanding PPP, which included a previously-deducted EIDL Advance amount, Bank of America will refund you this amount upon receipt of reconciliation funds received from the SBA.

How does new legislation change the PPP loan forgiveness process?
Legislation signed into law December 27, 2020, known as the Economic Aid Act, contained the following changes:

  • You now have the option to select a covered period which ends on a date that is at least 8 weeks following the date of loan disbursement, and not more than 24 weeks after the date of loan disbursement
  • Includes provisions that expand the list of allowable and forgivable expenses, which apply to existing PPP loans for which a borrower has not yet received forgiveness

The Paycheck Protection Program Flexibility Act, signed into law on June 5, 2020 contained the following requirements:

  • Your deferral period, during which payments on your loan will be deferred, will commence on the date on which your PPP loan was funded and end on (i) the date on which the amount of forgiveness as determined under section 1106 of the CARES Act is remitted to the Bank (or the date the SBA notifies us that no forgiveness is allowed) or (ii) the date which is ten (10) months after the last day of your “covered period” (as determined in accordance with Section 1106 of the CARES Act), if you have not applied for forgiveness by such date.
  • You must use at least 60% of funds for eligible payroll costs to qualify for full loan forgiveness, down from 75%
  • You can use up to 40% of funds for eligible nonpayroll costs, up from 25%

 For additional details, please visit the SBA website.

When can I apply for PPP loan forgiveness?
The simplified SBA Form 3508S is now available, in addition to the revised SBA Form 3508EZ and SBA Form 3508 applications. Eligible clients will receive an email with a link to access our loan forgiveness application when it becomes available to them.

As a reminder, based on the latest updates from the SBA, you now have more time to gather your documents and prepare your application. The timeframe for applying for loan forgiveness in the promissory note no longer applies.

For additional assistance with PPP loan forgiveness documentation, view our documentation guide.

How do I determine which application form I should use?
If your PPP loan is $150,000 or less, you will apply for loan forgiveness online through Bank of America using the simplified SBA Form 3508S.

If your PPP loan is more than $150,000, you will apply for loan forgiveness online through Bank of America using one of the following forms:

  • PPP EZ Loan Forgiveness Application (SBA Form 3508EZ)—for borrowers who can check at least one of the two boxes set forth in the application instructions.
  • PPP Loan Forgiveness Application (SBA Form 3508)—for borrowers who do not meet the requirements for using Form 3508EZ.

Do I need an Online Banking ID to access my PPP loan forgiveness application online?
Yes, you need a profile set up for CashPro, our digital banking solution.
If you don’t have one set up, please contact your Bank Representative.

How can I apply for PPP loan forgiveness if I cannot locate or deleted the email with instructions?
When you sign into CashPro and navigate to the PPP status page, you will see your Actions required and Forgiveness status. If you are eligible at this time to apply for loan forgiveness, you will see a link under Actions required titled “Apply for or decline forgiveness.” Once your application is submitted, the Forgiveness status will indicate where you are in the loan forgiveness process. You may also contact your Bank Representative for assistance.

If I elect to use the SBA's new loan forgiveness application (Form 3508S), will I be required to submit documentation?
The latest guidance from the SBA states for first draw PPP loan forgiveness applications using the S form, documentation does not need to be uploaded, however, you are required to retain all records relating to your PPP loan and may be required to submit such documentation to the SBA, upon request.

For second draw PPP loan forgiveness applications, you will be required to provide revenue reduction documentation if your loan was $150,000 or less and you did not provide such revenue reduction documentation prior to your forgiveness application.

The SBA requires borrowers using Form 3508 and Form 3508 EZ – to submit documentation in connection with their loan forgiveness application. You will not be eligible to receive loan forgiveness without supporting documentation.

For detailed information on the application, including Covered Periods, the type of costs that are eligible for forgiveness, and what documentation you will need to submit in connection with your application, please visit the U.S. Treasury and SBA websites.

For additional assistance with PPP loan forgiveness documentation, view our documentation guide.

How do I know if I am eligible to apply for loan forgiveness? (Small Business Online Banking)
You can sign in with your Small Business Online Banking username and password, click on your Paycheck Protection Program Loan and select “Check PPP Status".

We will email you with specific instructions on how and when you can apply when the PPP loan forgiveness application portal becomes available to you. The email can be found in your Alerts History within Small Business Online Banking titled “Our Paycheck Protection Program loan forgiveness application is now available".

How can I apply for PPP loan forgiveness if I cannot locate or deleted the email with instructions? (Small Business Online Banking)
The email can be found in your Alerts History within Small Business Online Banking titled “Our Paycheck Protection Program loan forgiveness application is now available".

How long do I have to apply for loan forgiveness?
Regardless of the terms in your PPP Promissory Note, as long as you have an outstanding balance on your PPP loan, you may submit a loan forgiveness application any time after the end of your Covered Period, but on or before the maturity date of your loan.

We will notify you by email of any changes to your loan forgiveness application window. 

Please note that your PPP loan deferral period will end prior to your maturity date, at which point you will need to start making payments on any unforgiven amount.

For additional assistance with PPP loan forgiveness documentation, view our documentation guide.

I paid off my PPP loan – am I still eligible for forgiveness on that loan?
No. According to the rules of the PPP program established by the SBA, a borrower who paid their PPP loan in full would not be eligible to apply for forgiveness. For additional information, please visit the SBA website

When does my PPP loan deferral period end? / When do I need to start making payments on my PPP loan?
The Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) extended the deferral period for borrower payments of principal and interest on all PPP loans to the earlier of (a) the date that the SBA remits the forgiven amount to the lender or notifies the lender that no forgiveness is allowed;  and (b) the date that is 10 months after the date that is the earlier of (i) 24 weeks after the end of the borrower’s “covered period” or (ii) December 31, 2020, if the borrower does not apply for forgiveness by such date. 

Can I apply for forgiveness prior to the end of my elected Covered Period?
No. The current SBA application for PPP loan forgiveness contains certain representations and documentation requirements that relate to the end of the Covered Period. As a result, you will only be able to apply for loan forgiveness through Bank of America once your Covered Period has ended.

As a reminder, you may submit a loan forgiveness application any time after the end of your Covered Period, but on or before the maturity date of your loan, as long as you have an outstanding balance on your PPP loan. This guidance applies regardless of the terms in your PPP Promissory Note.

Can I submit a paper application for PPP loan forgiveness?
Applications for PPP loan forgiveness at Bank of America must be submitted digitally through our online PPP loan forgiveness application portal. We will not accept paper loan forgiveness applications.

How can I prepare to apply for loan forgiveness?
Once you determine which SBA Loan Forgiveness Application Form you will use, we recommend that prior to applying online through Bank of America for PPP loan forgiveness, you carefully review and fill out the applicable form, and gather the required documentation specified in the instructions: 

For borrowers applying for loan forgiveness using SBA Form 3508EZ and SBA Form 3508, please note:

  • During the PPP loan forgiveness process you may need to resubmit documentation that you provided during the PPP loan application process.
  • Our online forgiveness application portal for 3508EZ and 3508 forms are not currently able to accept the following non-payroll costs, which were recently added by the SBA to the list of forgivable expenses: covered operational expenditures, covered property damage costs, covered supplier costs and covered worker expenditures. We will begin accepting these costs in several weeks and will email you when these updates are made. If you want to claim these expenses, you may want to wait until the updated online application is available.

For additional assistance with PPP loan forgiveness documentation, view our documentation guide.

Who determines the amount of loan forgiveness?

The U.S. Treasury and Small Business Administration (SBA) are responsible for the rules of the program, which determine the amount of loan forgiveness you may receive. This can include full, partial or no forgiveness.

We encourage you to visit the U.S. Treasury and SBA websites for the most up-to-date program rules and guidance.

How is the amount of owner compensation that is eligible for loan forgiveness determined?  What if I am an owner of multiple businesses with multiple PPP loans?
The applicable Interim Final Rules (IFRs) and FAQs provide that the amount of compensation of owners who work at their business that is eligible for forgiveness depends on the business type and whether the borrower is using an eight-week or 24-week Covered Period. The amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at the lesser of $20,833 per individual or the 2.5-month equivalent of their applicable compensation in 2019 (whichever is lower) in total across all businesses in which he or she has an ownership stake. For borrowers that received a PPP loan before June 5, 2020 and elect to use an eight-week Covered Period, this cap is $15,385 per individual or the 8 week equivalent of their applicable compensation in 2019 (whichever is lower) in total across all businesses in which he or she has an ownership stake. If their total compensation across businesses that receive a PPP loan exceeds the cap, owners can choose how to allocate the capped amount across different businesses

Is interest on unsecured credit eligible for loan forgiveness?
As of August 4, 2020, in Frequently Asked Questions (FAQs) on PPP Loan Forgiveness, the SBA stated that payments of interest on business mortgages on real or personal property (such as an auto loan) are eligible for loan forgiveness. Interest on unsecured credit is not eligible for loan forgiveness because the loan is not secured by real or personal property. Although interest on unsecured credit incurred before February 15, 2020 is a permissible use of PPP loan proceeds, this expense is not eligible for forgiveness.

Are any individuals with an ownership stake in a PPP borrower exempt from application of the PPP owner-employee compensation rule when determining the amount of their compensation that is eligible for loan forgiveness?
In an Interim Final Rule on Treatment of Owners and Forgiveness of Certain Nonpayroll Costs originally posted on August 24, 2020, the SBA clarified that, for C- and S-Corp borrowers, owners with less than a 5% ownership stake are exempt from the owner-compensation cap. 

Are amounts attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, in the context of home-based businesses, household expenses, eligible for forgiveness?
No. In an Interim Final Rule on Treatment of Owners and Forgiveness of Certain Nonpayroll Costs originally posted on August 24, 2020, the SBA has stated that the amount of loan forgiveness requested for nonpayroll costs may not include any amount attributable to the business operation of a tenant or sub-tenant of the PPP borrower or, for home-based businesses, household expenses.  The IFR provides four examples:

1) If a borrower rents a building for $10,000/month and subleases a portion of the building for $2,500/month, only $7,500 of the rent is an eligible non-payroll expense.

2) If a borrower has a mortgage on a building and leases 25% of the fair market value of the building to other businesses, only 75% of the mortgage expense is eligible.

3) If a borrower operates out of a shared rental, it must prorate rent and utilities as it did on its 2019 tax filings (or, for new businesses, as it will on its expected 2020 tax filings).

4) If a borrower works out of their home, only the share of covered expenses that were deductible on their 2019 tax filings are eligible for forgiveness (or, for new businesses, expected 2020 tax filings).

What utility payments are eligible for forgiveness?
Business payments for a service for the distribution of electricity, gas, water, transportation, telephone or internet access for which service began before February 15, 2020.

Are rent payments made to related parties eligible for forgiveness?
In an Interim Final Rule on Treatment of Owners and Forgiveness of Certain Nonpayroll Costs originally posted on August 24, 2020, the SBA has stated rent payments to related parties are eligible for forgiveness so long as 1) “the amount of loan forgiveness requested for rent or lease payments to a related party is no more than the amount of mortgage interest owed on the property during the Covered Period that is attributable to the space being rented by the business” and 2) “the lease and mortgage were entered into prior to February 15, 2020.”  Borrowers must provide mortgage interest documentation to substantiate these payments.  And where the payor requests forgiveness for amounts paid to a related party, the related party cannot also request forgiveness for that same amount.  Additionally, “[w]hile rent or lease payments to a related party may be eligible for forgiveness, mortgage interest payments to a related party are not eligible for forgiveness.”

I am planning to (i) sell all or part of my interest in my company, or (ii) merge my company with another company or (iii) sell some or all of the assets of my company to a third party, before my PPP loan is forgiven or paid in full.   Do I need to notify the Bank or the SBA?
The SBA published a Procedural Notice on Changes Of Ownership on October 2nd, which is available on the SBA website.   This notice requires, in most situations, that the PPP lender provide confirmation to the SBA of your satisfaction of the requirements set forth in the Procedural Notice.  Please contact your financial advisor as soon as possible, but at least 10 business days before the proposed date of the sale or merger, so that we can provide assistance in setting up an escrow account if needed and answer other questions you may have as you go through this process.

Where should I go if I have questions?
For detailed information on the application, covered periods, the types of costs that are eligible for forgiveness, and what documentation you will need to submit in connection with your application, please visit the U.S. Treasury and SBA websites.

For additional assistance with PPP loan forgiveness documentation, view our documentation guide.

For questions related to PPP, please contact your Bank Representative. 

Bank of America is committed to supporting you and all of our clients during this challenging period. 

Important Note: The Small Business Administration and the Department of Treasury continue to provide additional guidance concerning the Paycheck Protection Program. Thus, Bank of America makes no representation that information contained herein is up-to-date or complete. Before submitting a request for loan forgiveness, borrowers may wish to visit the SBA, U.S. Treasury Assistance for Small Businesses, and U.S. Treasury FAQ websites for the latest information and guidance related to the Paycheck Protection Program.

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