We have updated our PPP loan forgiveness application portal to reflect SBA guidance and have resumed sending invitations to apply for PPP loan forgiveness to borrowers with loans funded in 2020. You will receive an email invitation from PNC once we are ready for you to apply for forgiveness under the terms provided for in the new guidance.
We are in the process of sending forgiveness invitations to customers with First Draw PPP loans that were funded in 2020. We understand your desire to begin the PPP loan forgiveness process and appreciate your patience.
If you have already applied for PPP loan forgiveness, we will contact you if additional information is required based on SBA guidance.
We’ve made some updates to our forgiveness process to address changes needed to align with SBA guidance and have begun accepting some applications in our forgiveness portal. Borrowers will notice several changes. Please note:
Please note that if you haven’t applied for forgiveness, payments are not due until 10 months after the end of your applicable covered period, as described in your PPP promissory note.
Once you apply for forgiveness, payments on any unforgiven portion of your loan will be due in the first month after the SBA remits a forgiveness payment to PNC. If you do not apply for forgiveness, your first payment will be due in the first month after your deferral period ends. It is important to note that:
SBA Procedural Notice that Impacts Certain Borrowers Who Received a PPP Loan in 2020
SBA guidance prohibits borrowers from receiving forgiveness on any amount of the PPP loan that exceeds the “supported maximum loan amount” as calculated under current statutes, regulation and guidance.
If you received a PPP loan in 2020:
For additional information, please review the list of helpful documents provided by PNC to prepare for your applicationDownload the PPP Forgiveness Application Document Checklist »
You will not have to obtain these numbers. PNC will automatically pre-populate your Forgiveness Application with your SBA PPP Loan Number and Lender PPP Loan Number in the digital portal.
In general, payroll documentation, full-time equivalent (FTE) headcount documentation, and non-payroll documentation will be required.
Up to 100% of the principal amount and any accrued interest of the loan may be forgiven if you use the proceeds on qualifying expenses. However, there are certain actions that may reduce the amount of forgiveness, such as reducing the number of employees or reducing employee salaries or wages. Only up to 40% of the forgiven loan amount can be for non-payroll costs.
PNC will alert borrowers with an email notification once the PNC digital application portal is available to accept their application. You will be provided login credentials and instructions on how to initiate the loan forgiveness process through PNC’s digital portal.
Reach out to your Business Banker or Relationship Manager prior to the closing of any covered change in ownership. Covered change of ownership occurs when:
You may submit a loan forgiveness application any time on or before the maturity date of the loan if you have used all of the loan proceeds for which you are requesting forgiveness. If you are applying for forgiveness of a Second Draw PPP loan that is more than $150,000, you must submit the loan forgiveness application for the First Draw PPP loan before or simultaneously with the loan forgiveness application for the Second Draw PPP application.
Outstanding loan amounts bear an interest rate of 1.00%. Any loan approved on or after June 5, 2020 will have a maturity of five years, and any loan approved before June 5, 2020 will have a maturity of two years, unless the borrower and PNC agree to extend the period to five years. At the end of the deferral period, any accrued interest that has not been forgiven will be due.
If you apply for forgiveness, your payments will be deferred until PNC receives your approved loan forgiveness funds from the SBA. If you don’t apply for forgiveness, your payments could be deferred for up to 16 months – the deferral period has been extended for 10 months following whichever date occurs first – the date that is 24 weeks after your loan was funded, or December 31, 2020. Monthly payments of principal plus interest will begin after the deferral period.
No. PNC will let borrowers know when our digital portal is ready to accept forgiveness applications. We are not accepting paper applications at this time.
Guidance from the SBA states that lenders have 60 days after receiving a complete forgiveness application to review a PPP Forgiveness application and submit the lender’s decision to the SBA. Once the SBA receives the lender’s decision, it has 90 days to review the application before remitting a forgiveness payment to the lender.
If you apply for forgiveness, payments are deferred until the time when SBA remits payment to PNC. If there is a remaining balance after SBA remits payment, your first payment will be due the following month. If you do not apply for forgiveness, your first payment will be due 10 months after the end of the 24-week covered period (or 10 months after December 31, 2020, whichever is earlier). Refer to your loan documents for more information about deferral periods and repayment. Additionally, PNC will notify you of your first payment due date.
The Loan Necessity Questionnaire is a method to collect information for borrowers with loans over $2 million that will be used in evaluating the good faith certification made by clients that there was an economic necessity to receive PPP funds. This relates to the guidance from the Treasury and the SBA in April and May 2020 that clients who received PPP loans of $2 million or greater would receive a full review of their PPP loan for eligibility, fraud or abuse, and compliance with loan forgiveness requirements.
No, this is an SBA requirement. Banks are only a conduit to collect and input the information into the SBA’s system.
No. If you have already provided supporting documentation through the portal, you do not need to provide it again. You should reply to the mailbox indicating the evidence was already uploaded to the portal and only include anything newly required based on the questionnaire and/or full file review.
Yes. A questionnaire must be completed and submitted by each affiliate that is also a PPP borrower, if the combined amount of PPP loans received by the affiliate group is $2 million or greater.
Within 30 days of this notice, you may request that the SBA review this decision by contacting an SBA Call Center Representative at 833-572-0502, or the local SBA Field Office; the list of offices can be found at https://www.sba.gov/tools/local-assistance/districtoffices. Please note that you are required to make your monthly payments unless the SBA reverses our decision.
Payroll costs that were either paid or incurred during the Covered Period are likely eligible for forgiveness. Payroll costs are considered paid on the day that paychecks are distributed or the borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee's pay is earned. Payroll costs incurred but not paid during the borrower's last pay period of the Covered Period are eligible for forgiveness if paid on or before the next regular payroll date. Payroll costs that were both paid and incurred can only be counted once toward the forgiveness amount.
SBA EIDL Website
SBA Form 3508 Paycheck Protection Program Loan Forgiveness Application (updated January 19, 2021)
SBA Form 3508EZ Paycheck Protection Program Loan Forgiveness Application (updated January 19, 2021)
SBA Form 3508S Paycheck Protection Program Forgiveness Application (updated January 19, 2021)
This information is based on currently available information and is subject to change. We are committed to keeping you informed as we receive additional guidance.
PNC will not pay agents for assistance they may provide an applicant in obtaining a PPP loan or submitting a claim for forgiveness.
Read a summary of privacy rights for California residents which outlines the types of information we collect, and how and why we use that information.