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Coronavirus Emergency Loans for Small Business

SBA Paycheck Protection Program Guide and Checklist

7-7-2020 ALERT: WesBanco still accepting SBA PPP applications

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. An amendment to the CARES Act was signed into law by the President on July 4, 2020, extending the SBA’s Paycheck Protection Program (PPP) loans through August 8, 2020.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.

Learn More

Helpful Links

WesBanco Coronavirus Support Programs

The Coronavirus Aid, Relief, and Economic Security (CARES) Act

Economic Impact Payments FAQs

7/7/2020 WesBanco Update:

An amendment to the CARES Act has extended funding for the SBA Paycheck Protection Program (PPP) through August 8,2020. WesBanco is currently accepting applications for both existing customers and non-customers within our footprint.  Non-customers will be required to open a deposit account with WesBanco for the purpose of verifying identity and distributing the PPP loan proceeds. Please either work through your existing WesBanco contact or representative, or call your nearest banking center by using our branch locator.

All continuing updates regarding WesBanco’s participation in the PPP will be posted to this page. Please continue to check here for further information.

Paycheck Protection Program Loan Forgiveness

If you have received a PPP loan from WesBanco, you may apply for forgiveness of up to 100% of the loan amount, if the proceeds are used for qualified expenses, subject to compliance with the U.S. Small Business Administration guidelines and approval.

WesBanco will be contacting you with a link to accept your forgiveness application. This link will be available when the SBA provides updated guidance as to how the recent law changes referenced above impact the forgiveness process. Prior to receiving this link, please familiarize yourself with the SBA’s application and instructions as several pieces of information and documentation will be required to complete the application process via WesBanco’s weblink. Since Congress has passed this update to certain attributes of the PPP program, you should check the SBA Resource Site frequently.  Should you have questions, you may call your local WesBanco representative.

Additional Details and Resources on Loan Forgiveness

The following excerpt is from the U.S. Small Business Administration website as of June 1, 2020:

Loan Forgiveness

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
  • Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined

Click here to download the Paycheck Protection Forgiveness Loan Forgiveness Instructions and Application.

Additional Paycheck Protection Program guidance and FAQs are also available at the US Treasury website.

Please read the guidelines below for initial program details. As of April 4, 2020 at 12:00 PM EST, this was the most current information available from the SBA.  Some details may have changed.  Please check the SBA site at www.sba.gov for the most current information. Please note, WesBanco will not pay Agents for assistance they may provide an applicant for this PPP loan. 

Am I ELIGIBLE?

  • • A small business with fewer than 500 employees
    • A small business that otherwise meets the SBA’s size standard
    • A 501(c)(3) with fewer than 500 employees
    • An individual who operates as a sole proprietor
    • An individual who operates as an independent contractor
    • An individual who is self-employed who regularly carries on any
    trade or business
    • A Tribal business concern that meets the SBA size standard
    • A 501(c)(19) Veterans Organization that meets the SBA size standard

    In addition, some special rules may make you eligible:

    • If you are in the accommodation and food services sector (NAICS 72), the 500-employee rule is applied on a per physical location basis
    • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply

    REMEMBER: The 500-employee threshold includes all employees:
    full-time, part-time, and any other status.

Lender Info

  • In evaluating eligibility, lenders are directed to consider whether the borrower was in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes or paid independent contractors.

    Lenders will also ask you for a good faith certification that:

    1. The uncertainty of current economic conditions makes the loan request necessary to support ongoing operations
    2. The borrower will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments
    3. Borrower does not have an application pending for a loan duplicative of the purpose and amounts applied for here
    4. From Feb. 15, 2020 to Dec. 31, 2020, the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold emergency loans made between Jan. 31, 2020 and the date this loan program becomes available into a new loan)

    If you are an independent contractor, sole proprietor, or self-employed individual, lenders will also be looking for certain documents (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and income and expenses from the sole proprietorship.

  • • That the borrower sought and was unable to obtain credit elsewhere.
    • A personal guarantee is not required for the loan.
    • No collateral is required for the loan.

Amounts

  • Loans can be up to 2.5 x the borrower’s average monthly payroll costs, not to exceed $10 million.

  • (Sum of INCLUDED Payroll Costs) – (Sum of EXCLUDED Payroll Costs) = Payroll Costs

    INCLUDED Payroll Cost:

    1. For Employers: The sum of payments of any compensation with
    respect to employees that is a:

    • salary, wage, commission, or similar compensation;
    • payment of cash tip or equivalent;
    •  payment for vacation, parental, family, medical, or sick leave
    • allowance for dismissal or separation
    • payment required for the provisions of group health care benefits, including insurance premiums
    • payment of any retirement benefit
    • payment of state or local tax assessed on the compensation of the employee

    2. For Sole Proprietors, Independent Contractors, and Self-Employed
    Individuals:

    The sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in one year, as pro-rated for the covered period.

     

    EXCLUDED Payroll Cost:
    1. Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period February 15, to June 30, 2020
    2. Payroll taxes, railroad retirement taxes, and income taxes
    3. Any compensation of an employee whose principal place of residence is outside of the United States
    4. Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act

Loan Forgiveness Options

  • How Much?
    A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:

    • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
    • Interest on the mortgage obligation incurred in the ordinary course of business
    • Rent on a leasing agreement
    • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
    • For borrowers with tipped employees, additional wages paid to those employees the loan forgiveness cannot exceed the principal.

    How could the forgiveness be reduced?
    The amount of loan forgiveness calculated above is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.

    What if I bring back employees or restore wages?
    Reductions in employment or wages that occur during the period beginning on February 15, 2020, and ending 30 days after enactment of the CARES Act, (as compared to February 15, 2020) shall not reduce the amount of loan forgiveness IF by June 30, 2020 the borrower eliminates the reduction in employees or reduction in wages.

Find a Location Near You!

WesBanco operates 236 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. Over the past decade, we have built a national reputation as a safe, sound and profitable bank holding company that always strives to do better by its customers.

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