Last Updated: March 5, 2021
We are currently working to update our PPP loan application portal to reflect guidance released by the SBA on March 3, 2021 regarding PPP loan amount calculations for certain new applicants who report income on IRS form 1040, Schedule C. Because this new guidance may result in new applicants with Schedule C filings being able to obtain higher loan amounts, we recommend that you wait to apply until after our portal has been updated under the terms provided in the new guidance.
On February 24, 2021, the SBA began a 14-day period in which it will only accept PPP loan applications from businesses and nonprofits with 19 or fewer employees.
PNC is still accepting applications from eligible customers (regardless of number of employees) during this period. However, we will not be permitted to submit applications to the SBA for customers with 20 or more employees until March 10, 2021, per SBA guidance.
Although we cannot submit applications to the SBA for customers with 20 or more employees during this period, we will continue to review applications that have already been submitted to PNC, regardless of employee count.
Businesses that have not previously received a PPP loan may apply for a first draw-PPP loan. Note that the rules and eligibility requirements for new, first PPP loans are different than those for second draw PPP loans.
Businesses that have previously received a PPP loan may now apply for a Second Draw PPP loan. We are currently accepting applications online, and we ask that customers not complete the SBA paper applications for submission to PNC.
Some borrowers may need to re-substantiate their average monthly payroll costs when applying for a second draw PPP loan by re-submitting documentation supporting their average monthly payroll costs.
Refer to SBA Rules for more information on eligibility requirements.
How to Calculate Maximum Loan Amounts for First Draw PPP Loans
How to Calculate Revenue Reduction and Maximum Second Draw Loan Amounts
For additional information, please review the list of helpful documents provided by PNC to prepare for your application
Download the PPP Loan Application Document Checklist »Please select the option below that best describes your business:
Please use a Chrome Browser for the application.
Important information to know before applying »
Please contact your banker to receive
a PPP loan application invite via email.
Once you've received your invite:
Refer to SBA Rules for more information on other applicable terms, conditions and limitations.
PNC is not accepting applications for loan increases for First Draw Loans. On January 13, 2021, the SBA released guidance for certain eligible borrowers to request (under narrow circumstances) an increase to a First Draw PPP Loan approved on or before August 8, 2020. We are evaluating how to process loan increases as permitted by the guidance.
Consistent with PNC’s existing SBA lending guidelines, we do not accept applications from Agents acting on behalf of borrowers and do not pay Agents.
To apply, you must have an existing PNC deposit or lending relationship, due to customer verification requirements that apply under applicable rules. If you are a self-employed worker or an independent contractor, you must have had an existing PNC deposit or lending relationship as of December 31, 2020 to apply for the program. Business Banking clients must also be enrolled in Online Banking in order to apply. If you are not currently enrolled, please enroll in Online Banking prior to applying for a PPP loan.
Please make sure that your business address is not a P.O. Box address. Per SBA guidelines, a P.O. Box cannot be a valid business address for a PPP loan submission.
For additional information please review the list of helpful documents provided by PNC to prepare for your application: PPP Loan Application Document Checklist
Refer to SBA Rules for more information on eligibility requirements.
How to Calculate Revenue Reduction and Maximum Second Draw Loan Amounts
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 for $150,000 or less. 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 currently only sending invitations to apply for forgiveness to customers with First Draw PPP loans that were funded in 2020 for $150,000 or less and do not have any potential excess loan amount errors or missing borrower documentation.
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 addresses changes needed in light of SBA guidance and have begun accepting some applications in our forgiveness portal. Borrowers with loans less than or equal to $150,000 will notice a number of 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 “correct maximum loan amount” as calculated under current statutes, regulation and guidance.
For borrowers who received a PPP loan in 2020:
For additional information, please review the list of helpful documents provided by PNC to prepare for your application
Download the PPP Forgiveness Application Document Checklist »We continue to evaluate our Frequently Asked Questions to align with SBA guidance. Questions and answers are subject to change.
Yes, Second Draw PPP Loans are eligible for loan forgiveness on the same terms and conditions as First Draw PPP Loan.
Based on new guidance provided by the SBA on 1/19/2021, clients that applied for a PPP Second Draw Loan and provided document requirements for the Revenue Reduction test, are required to make the following updates to the documents that were sent, and re-upload in the loan application portal, and submit the loan back to PNC. Please see the 3 required documentation below, the client only needs to choose 1 option:
Financial documents provided for the revenue test calculation must be signed and dated.
Quarterly financial statements for the entity. If the financial statements are not audited, the Applicant must sign and date the first page of the financial statement and initial all other pages, attesting to their accuracy. If the financial statements do not specifically identify the line item(s) that constitute gross receipts, the Applicant must annotate which line item(s) constitute gross receipts.
Quarterly or monthly bank statements for the entity showing deposits from the relevant quarters. The Applicant must annotate, if it is not clear, which deposits listed on the bank statement constitute gross receipts (e.g., payments for purchases of goods and services) and which do not (e.g., capital infusions).
Annual IRS income tax filings of the entity (required if using an annual reference period). If the entity has not yet filed a tax return for 2020, the Applicant must fill out the return forms, compute the relevant gross receipts value (see Question 5 in IRS link below),and sign and date the return, attesting that the values that enter into the gross receipts computation are the same values that will be filed on the entity's tax return.
No, the 25% reduction only applies to second draw PPP loans.
You will not have to obtain these numbers. PNC will automatically pre-populate borrowers’ Forgiveness Applications with their SBA PPP Loan Number and Lender PPP Loan Number in the digital portal.
You can reference the revised SBA Loan Forgiveness Page and Instructions on the Treasury site.
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 applications. You will be notified once the PNC Online Portal becomes available. Borrowers 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, they have 90 days to review the application before remitting a forgiveness payment to the lender.
Yes.
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 $2MM 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 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.
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.
Yes.
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 01-19-21)
SBA Form 3508EZ Paycheck Protection Program Loan Forgiveness Application (updated 01-19-21)
SBA Form 3508S Paycheck Protection Program Forgiveness Application (updated 01-19-21)
Please note that it is possible that SBA could request the Questionnaire from any borrower who ever received a loan of $2MM or more, even if the loan was repaid in full, or paid down to less than $2MM.
See 85 FR 20817 (April 15, 2020) regarding application of SBA's affiliation rules.
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.