PAYROLL PROTECTION PROGRAM (PPP)

Update:  May 3, 2021

UPDATE:  PPP Forgiveness Application

If you are ready to begin the application process for PPP Forgiveness (for first or second draw loans), please send an email to ppphelp@mybct.bank with “Forgiveness link” in the subject and the borrower name in the body of the email.  We will then activate your Forgiveness Application in our portal and an automated email will be sent to you containing your unique link for portal access.  Our portal solution will simplify the Forgiveness Application for you by pre-filling many of the fields in the application including loan number, dates, etc.

If you have already completed a Forgiveness Application and it is pending BCT or SBA review, there are no additional steps for you to take at this time.  We will process completed Forgiveness Applications and will contact you should any unforeseen issues arise.  As per PPP regulations, BCT has 60 days from the time the complete application is received to complete our review before sending to the SBA.  The SBA then has 90 days to finalize the decision.  

If you have any questions, please contact ppphelp@mybct.bank.

 

Update:   February 18, 2021


PPP Forgiveness – First Draw Loans of $150,000 or less

Included in the stimulus package that Congress passed at the end of 2020 was a simplified forgiveness application for loans of $150,000 and less. Congress updated the respective forgiveness forms last month and our software developers have been working to update the coding around the new forms.  

We are pleased to announce that borrowers will be able to utilize the new forms on our portal beginning Monday, February 22, 2021.  

If you are ready to begin this application, please send an email to ppphelp@mybct.bank with “Forgiveness link” in the subject and the borrower name in the body of the email.  We will then activate your application in our portal and an automated email will be sent to you containing your unique link for access.

If you have already completed a forgiveness application and it is pending BCT or SBA review, there is nothing for you to do at this time.  We will process completed forgiveness applications and will contact you should any unforeseen issues arise.

 

PPP Forgiveness – Second Draw Loans

If you have not yet applied for a Second Draw Loan and desire to do so, we stand ready to assist you.  Funding remains available and BCT will accept applications through March 26.  To begin the Second Draw loan application process, please send an email to ppphelp@mybct.bank with “PPP: Application Round 2” in the subject line.  

Should you have questions regarding anything related to the PPP loan process, please feel free to reach out via email at ppphelp@mybct.bank.

 

Update:  January 8, 2021

Initial SBA Guidance for PPP; Target Dates for Applications

Keeping to our promise to keep you informed as we navigate through the Paycheck Protection Program (PPP) together, please read below several important updates regarding PPP First and Second Draw Loans.


PPP Loans – Second Round

New funding has been allocated for both first-time loans and for businesses seeking a second draw.  We look forward to helping you should you choose to apply for the first or second time.  The SBA has issued initial guidance on how the second draw program will operate.  While the program is not open today it is scheduled to open for First Draw Loans on Monday, January 11th and for Second Draw loans on Wednesday, January 13th.   We wanted to share information we gathered from their initial guidance and let you know we are ready to serve you.


What we shared previously:

  • Eligible borrowers:‚Äč
    • Fewer than 300 employees
    • Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019
    • Stock not traded on a national exchange
    • 501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible
    • Maximum loan – 2.5 times average monthly payroll or $2 million, whichever is less.
    • Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll

What we have learned:

  • For returning borrowers, the bank will be able to utilize the documentation collected during the First Draw Loan program. 
  • For loans over $150,000, you will be required to submit documentation showing the 25% reduction in sales from a quarter in 2019 compared to the same quarter in 2020, or by year-over-year comparison. This will be accomplished by review of either Profit & Loss statements (or other Revenue reports) or by submitting your 2019 and 2020 tax returns for the business.
  • For loans under $150,000, borrowers may wait to provide documentation about the 25% reduction in sales until the time of the forgiveness application.
  • As a borrower, you do not need to apply for forgiveness of your First Draw Loan prior to applying for a Second Draw Loan.  However, you will need to document that the money has been spent before the Second Draw Loan can be funded. 
  • The program ends March 31, 2021.


What’s Next:  BCT’s Online Portal Solution

BCT is finalizing an online PPP Loan Origination Portal that will simplify the application process for you.  This portal is similar to the Forgiveness Portal solution many of you have utilized. Once the Portal is updated with the most recent SBA release, we will notify you by an individualized email with your login information. The Portal will provide the following to you as a PPP Loan recipient:

  • Automate the completion of the SBA’s First or Second Draw Application (including digital signature
  • Assist with the calculations to help reduce the possibility of computation errors that may impact loan amount
  • Provide a centralized place to upload supporting documentation for your request

* We will only accept PPP applications through our online PPP Loan Origination Portal.  No paper or email applications will be accepted. We will advise you by email and our website when the portal is active so you will be able to request your log in credentials.

We will notify you when the Portal is open for applications.  You may also visit this page for the most current information we have published.  We anticipate the Portal being opened prior to the SBA’s go live dates of January 11th for First Draw Loans and January 13th for Second Draw Loans.

Thank you for choosing to work with BCT for your PPP loan needs.  If you plan to apply for additional funding, or have additional questions, we stand ready to assist.  Please email your questions to ppphelp@mybct.bank and include “PPP loan 2” in the subject line.

Sincerely,

PPP Loan Team

 

Update December 29, 2020

 

Great News!

Congress has passed a new $900 billion bipartisan COVID-19 relief package and the President has signed it into law. Included in the new bill are many provisions pertaining to PPP.  Below is a summary of our current understanding of the bill.  As we learn more and the SBA releases guidance, we will communicate further.

PPP Loans – Second Round

New funding is being allocated for both first-time loans and for businesses seeking a second draw.  We look forward to helping you should you choose to apply again. The SBA has 10 days to issue guidance on how the second draw program will operate. Additionally, it must supply guidance addressing access to capital issues for underserved communities.

  • Eligible borrowers:

    • Fewer than 300 employees

    • Must have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019

    • Stock not traded on a national exchange

    • 501(c)(6) are eligible, but any entity for which lobbying comprises more than 15% of receipts or activities is not eligible

  • Maximum loan – 2.5 times average monthly payroll or $2 million, whichever is less. 

    • Businesses in the restaurant and hospitality industries are eligible for loans for 3.5 times average monthly payroll

Thank you for choosing to work with BCT for your PPP loan needs.  If you plan to apply for additional funding, or have additional questions, we stand ready to assist.  Please email your questions to ppphelp@mybct.bank and include “PPP loan 2” in the subject line.

 

More good news…

Reforms to Current PPP

  • EIDL Advance fix. The prior provision in which the EIDL Advance was deducted from the forgiveness decision (as per the CARES Act) has been repealed.

    • This change is retroactive to the start of CARES. It also requires SBA to make borrowers whole if they have already received forgiveness and the EIDL Advance was deducted from that amount.

    • If you have already submitted your PPP Forgiveness Application, please wait for additional guidance as it relates to this aspect of the law.  The law provides that the SBA has 15 days from date of enactment to issue rules related to how the repeal works and how they will make borrowers whole.

    • Simplified forgiveness for smaller loans. For PPP loans of $150,000 or less, you will submit to us a one-page attestation of compliance with program requirements. The inclusion of demographic information is discretionary.

    • If this applies to your loan and you have already submitted a PPP Forgiveness application, please wait for additional guidance. The law provides that the SBA must create this form within 24 days of enactment.

  • Expenses are tax deductible. The new law provides that business expense paid with forgiven PPP loan proceeds may be deducted from taxable income.  Please consult with your accountant or tax preparer.

If you have any questions regarding any of these changes, please email ppphelp@mybct.com and include “Forgiveness Question” in the subject line.

We understand that this has likely been a trying year for you and your business.  You are to be commended for your resolve and ability to adapt to changing circumstances. We are pleased with the provisions in the new stimulus package and are hopeful that it propels your business into a prosperous 2021.

Merry Christmas and Happy Holidays!

Sincerely,

Your BCT PPP Loan Team

 

For more information, contact our PPP Help Team at:
304-728-2419
703-443-4485
PPPHelp@mybct.bank

* BCT is approved to offer SBA loan products under SBA's Preferred Lender programs.