Paycheck Protection Program

• In general, borrowers may receive a loan amount of up to 2.5X the average monthly payroll costs in the one year prior to the loan or the calendar year 2019 or 2020. 
• Seasonal employers may calculate their maximum loan amount based on a 12-week period beginning February 15, 2019 through February 15, 2020. 
• New entities may receive loans of up to 2.5X the sum of average monthly payroll costs.
• Entities with NAICS code 72 can apply for 3.5X the sum of average monthly payroll costs.
• Loans are 100% guaranteed by the SBA and forgivable if the proceeds are used for forgivable expenses.
• Loan amounts will accrue interest at a fixed rate of 1.00% and have a 5-year maturity.
• First-time borrowers are eligible to receive a maximum loan amount of $10 million.
• Second draw borrowers are eligible to receive a maximum loan amount of $2 million.
• Corporate groups are eligible for $20 million for first draw and $4 million for second draw.

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

• The application may take an hour or more to complete.
• It is important that you complete your application accurately with the required information, documents and signatures. Inaccurate and/or incomplete responses and documentation will impact how quickly we can process the application. We are not able to submit to the SBA applications that remain incomplete or ineligible.
• Not all applicants may be eligible for a PPP loan based on responses to qualifying questions, consistent with SBA program guidelines. Please read all questions within the application carefully. Please visit sba.gov for program guidelines.
• PNC reserves the right to stop accepting PPP applications at any time, dependent upon the number of applications submitted, processing capacity and SBA allocated funding.
• Given the limitations on SBA authorized funding and interest in PPP loans from small businesses across the country, it is possible that not every complete application will be submitted to, and registered by, the SBA before the PPP’s authorized funding is exhausted.

Refer to SBA Rules for more information on eligibility requirements.

How to Calculate Revenue Reduction and Maximum Second Draw Loan Amounts

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:

• The common stock or other ownership interest in the PPP Borrower is being sold or otherwise transferred,
• When the borrower sells or transfers at least 50% of its assets, or
• When the borrower merges with or into another entity.

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.

You have 10 business days upon receipt from PNC. You must submit a fully completed form that includes all questions answered with any applicable attachments included.

No. If you have already provided supporting documentation through the portal, you do not need to provide it again. You should reply back 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.

Yes, the requirement to complete a pay down is based on the original principal loan amount a borrower received.

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.

In calculating your loan forgiveness amount, you may exclude any reduction in full time employees if you are able to document in good faith the following: (1) an inability to rehire individuals who were employees of the borrower on February 15, 2020 and (2) an inability to hire similarly qualified individuals for unfilled positions on or before December 31, 2020. The documents that you should maintain to show compliance with this exemption include the written offer to rehire an individual, a written record of the offer’s rejection, and a written record of efforts to hire a similarly qualified individual. These documents must be sent to the applicable state’s unemployment insurance office within 30 days of the employee’s rejection of the rehire.

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)