An update on PPP loan forgiveness and newly proposed legislation. Watch videos below.
SBA Releases Borrower Application, Instructions for PPP Loan Forgiveness
The SBA has extended the repayment “safe harbor” from Thursday, May 14, 2020 to Monday, May 18, 2020. Read the new FAQ #47.
SBA issues new “Safe Harbor” guidance. Read the updated FAQs specifically the addition of #46.
Washington Trust’s quick response to adapt its small business division
KHQ connected with Jack to discuss the second round of small business loans
Washington Trust was mentioned in the Spokane Journal of Business
PPP Update: New Rules, Requirements, Guidance and Clarification
Stay Informed: Watch Video Updates
PPP loan forgiveness guidance and processes are ever-changing. In this video we discuss the forgiveness process and share additional details on the legislation that was introduced on May 21, 2020.
Paycheck Protection Program
Our customers and communities are experiencing unprecedented economic challenges related to the outbreak of COVID–19. In this challenging time Washington Trust Bank is here for you, your families, your business and employees. On April 3, 2020 the application was released by the SBA for the Paycheck Protection Program (PPP). Attached is the application and frequently asked questions. As a reminder, the PPP provides loans to small businesses with less than 500 employees, who can certify that:
- The funds are needed due to the current economic conditions; and
- The funds will be used within 8 weeks of the loan for employee payroll, interest on mortgages, or rent.
The amount of money available under the program will be 2.5 times your average monthly payroll, up to $10 million. These are near term liquidity loans to assist your business through the next couple months. If you want to know more about the PPP, please see the FAQ from the Treasury.
The application process for the loan is very streamlined and the application form is included here. Contact your Washington Trust banker if you wish to apply. Your banker will establish a secure email process for you to submit the application and additional documentation. If you do not have an assigned loan officer, please call our Priority Service team at 800.788.4578 who will help guide you through the application process.
Additional Documents for Application
We will also need the following documentation from you so please begin to gather the following:
To verify your business had employees for whom you paid salaries and taxes, please provide one of the following:
- A Federal Unemployment form 940 (annual) or 941 (seasonal);
- A current CPA prepared financial statement; or
- A current CPA statement validating the borrower paid salaries and payroll tax.
- To verify the calculation of the loan amount, provide financial information and/or statements that demonstrate how the loan amount was calculated.
We may be required to ask for additional information. Your banker will contact you with more details as they become available. Washington Trust Bank is a current SBA Lender and is registered to fund SBA loans. You are permitted to submit only one loan application.
PPP Loan Forgiveness
One of the attractive features of the PPP is that a portion and potentially all of the loan amount may be forgiven by the SBA in the future. Neither the Treasury, nor the SBA have issued rules regarding what will be required for forgiveness. We don't expect that the documentation will be much greater than the types of records you keep now, for instance detailed payroll records, mortgage payment records, leases and rent payment records. Once we have additional information regarding the process for receiving forgiveness and what will be required to request forgiveness, we will let you know. The goal of Treasury is to get money into your company's hands quickly if you need it. Because we don't know the full structure for forgiveness, please be certain that you have consulted with your legal and accounting professionals and that you are comfortable with the program.