Last Updated: July 20, 2021
The Small Business Administration (SBA) funding for the Paycheck Protection Program (PPP) has been exhausted. As a result, we are no longer accepting new PPP Applications.
We appreciate your relationship during these difficult times. Through the Paycheck Protection Program, we were able to offer more than 119,000 loans to small businesses, totaling over $17.3 billion for our customers.
Although the Paycheck Protection Program is no longer accepting applications, we do offer other Business Lending products.
Additionally, if you are concerned about making Small Business Loan or Credit Card payments due to COVID-19, we have a variety of programs available to assist you. Please visit our COVID-19 Resource Center for more information. Please visit the SBA website for additional resources.
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 are always working to make enhancements to the Forgiveness Portal. When filling out your forgiveness application, please note:
Please note that if you don’t apply for forgiveness, your deferral period will end 10 months and 24 weeks after you received your PPP loan and you will be required to begin making payments the first month after your deferral period ends.
If you apply for forgiveness before the end of your deferral period, your deferral period will continue until PNC receives your forgiveness payment from the SBA or a decision is made that your PPP loan will not be forgiven. You will be required to begin making payments the first month after your deferral period ends.
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.
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.
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