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Paycheck Protection Loans

Last updated: March 22, 2021

As of March 18, 2021, SBA has updated the PPP loan applications once again. These applications will apply to both First and Second Draw Applicants as well as First and Second Draw Schedule C Applicants. Please see difference below from update on March 4, 2021. CBC Bank currently plans to participate in the Paycheck Protection Program through the end of March with no intentions of extending the program beyond March 31, 2021. Please be sure to get your application in to one of our lenders before March 26, 2021 to allow time for processing. 

Please see below links for the updated PPP loan applications. Only 1040-Schedule C filers electing to use their gross income to calculate their loan amount should use form 2483-c or 2483-SD-C. ALL others should use forms 2483 or 2483-SD. 

Form 2483- First Draw Borrower Application- updated 3.18.2021

First Draw Loan Amount Calculation & Documentation Guide

Form 2483-SD- Second Draw Borrower Application- updated 3.18.2021

Second Draw Loan Amount & Documentation Guide

ONLY Schedule C filers who elect to use their gross income to calculate their PPP loan amount should use the following applications:

Form 2483-C- First Draw Borrower Application- updated 3.18.2021

Form 2483-SD-C- Second Draw Borrower Application- updated 3.18.2021

Last updated: March 4, 2021

As of 3/3/2021, SBA has updated the PPP loan applications, which you will see linked below. The application updates are due to the changes SBA has made regarding borrowers who file their taxes using 1040-Schedule C (sole proprietors, independent contractors, & self-employed individuals). Schedule C filers now have the option to either use their gross income or net income as the basis of calculating their loan amount. For all changes, please refer to the SBA PPP IFR Loan Amount Calculation and Eligibility document

Please note that changes have been made to the safe harbor rules applying to borrower's certifications that this PPP loan is necessary. See the SBA PPP IFR (3.3.21) to review these changes.

Also, note that Schedule C filers who have already been approved for their first or second draw PPP loan are not eligible to increase their loan amount based on the new calculation method.

No changes were made to the qualifications for a second draw PPP loan in regards to having at least 1 quarter in 2020 show a 25% decrease in gross revenue as compared to the same quarter in 2019. See “Second Draw Loan Amount & Documentation Guide” above for more information.

Please contact the bank if you have any questions about these newest changes to the Paycheck Protection Program.

For information regarding loan forgiveness applications for PPP first draw loans, see information below. Latest updates were made as of 1.19.2021

Last updated: January 22, 2021

As of January 22, 2021, CBC Bank will now be accepting applications for the First and Second Draw of PPP funding.

The requirements for qualification of the Second Draw will be stated in the application, but at a MINIMUM, you must be able to provide documentation showing that you had at least a 25% reduction in gross revenue from 2019 to 2020 in at least one comparable quarter. If you are interested in finding out if you qualify, please contact your loan officer directly. 

Please see below links to both the First and Second Draw Applications along with with Documentation Guides to help you calculate your loan amount and lists the documents needed to apply. 

**Links to these applications have been removed as of 3.3.2021 due to updated applications. Please see referenced above.

First Draw Borrower Application- updated 2.19.21

First Draw Documentation Guide

Second Draw Borrower Application- updated 2.19.21

Second Draw Documentation Guide

Please remember that you must have either already submitted a forgiveness application for the first draw of PPP funds or turn in a forgiveness form with your Second Draw application before being able to apply for a Second Draw. 

Please see below Forgiveness Applications

Form 3508 Full Application- updated 1.19.2021

Form 3508EZ- updated 1.19.2021

Form 3508S Application- updated 1.19.2021

If you are unsure as to which form to fill out, please contact your loan officer at 888-405-7600. 

Last updated: October 8, 2020

Update

As you know, you executed a promissory note (the “Note”) with respect to the loan (the “Loan”) made by Commercial Banking Company (the “Bank”) to you under the Paycheck Protection Program (the “PPP”). After the date of your Note, Congress enacted the Paycheck Protection Program Flexibility Act of 2020 (the “Flexibility Act”). The Small Business Administration (the “SBA”) and the U.S. Department of Treasury (the “Treasury”) issued further regulations (“the PPP Regulations”)[1] implementing the Flexibility Act.

The Flexibility Act and the PPP Regulations, among other things, extended the payment deferral period applicable to your Note.

To conform to the Flexibility Act and the PPP Regulations, no payments are due from you to the Bank under the Note until either:

(1) If you submit a forgiveness application for the Loan within 10 months following the end of the forgiveness Covered Period (which is 24 weeks from the date of the loan, as that term is defined in the Flexibility Act and the PPP Regulations) applicable to the Loan, the date on which the SBA either (a) remits your Loan forgiveness amount to the Bank, or (b) notifies the Bank that no Loan forgiveness is allowed. We will notify you of the amount and schedule of any such required payments at that time; or

(2) If you do not apply for forgiveness of the Loan on or before the date which is 10 months after the last day of the loan forgiveness Covered Period, your payment due date will be the next business day after the date that is 10 months following the end of the forgiveness Covered Period applicable to the Loan.

Interest will continue to accrue on the Loan during the payment deferral period. At expiration of the payment deferral period, you will be required to make monthly principal and interest payments in such amounts as are necessary to fully amortize the outstanding unforgiven balance of the Loan over the remaining term of the Note.

Nothing in this notice shall affect the current maturity date of the Note. We have already updated the Bank records with respect to your Note to reflect these changes, so no further action is required from you at this time.

Please carefully review the PPP Regulations (as they may be revised and updated from time to time) for the specific rules and requirements applicable to forgiveness of your PPP Loan.

If you have any further questions relating to this notice, your Note, or the PPP, please contact your loan officer at 229-242-7600. As always, thank you for doing business with Commercial Banking Company.

[1] PPP Regulations shall mean the Coronavirus Aid, Relief, the Economic Security Act, the Paycheck Protection Program Flexibility Act of 2020, and all other laws, rules, regulations, guidance, requirements, procedures, applications, and forms concerning the PPP by Congress or any other governmental authorities, including by the SBA and the Treasury.

How to Apply

As of June 17, 2020, the SBA has released both the full forgiveness application along with a new, streamlined "EZ" forgiveness application for certain borrowers to use to apply for forgiveness. The new "EZ" application reduces the documentation and number of calculations required to apply for forgiveness. To use the new form, you must meet at least one of three criteria as provided by SBA:

Are self-employed and have no employees; OR

Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR

Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.

If you can check any of the boxes in the grey area on this application form, you can use the SBA Form 3508EZ to apply for forgiveness. Otherwise, you will use the FFA (Full Forgiveness Application).

Please see the below links to access both applications, along with instructions on how to apply for these.

**Links to these applications have been removed as of 3.3.2021 due to updated applications. Please see referenced above.

Full Application

Instructions to Assist in Filling Out the FFA

"EZ" Application

Instructions to Assist in Filling Out the "EZ" Application

How to Submit Your Application to CBC Bank

  1. You will receive a letter in the mail with information needed to complete your application such as the Lender PPP Loan Number, SBA PPP Loan Number, PPP Loan Disbursement Date, and PPP Loan Amount
  2. Once you have received this information, filled out the application in full, and gathered all required documents, please submit them to sbappp@cbcbank.com.
  3. Please remember to fill out ALL fields on the application and ensure that 100% of the application is complete at submission. This will help with a smooth and seamless process.
  4. Once submitted, a CBC Bank employee will reach out to you within 3-5 business days to let you know whether or not the application has been accepted or if additional information is needed. 
  5. From the point of "acceptance", CBC Bank has up to 60 days to review the application before it is submitted to SBA. 

**Please note: once the application is submitted to SBA, they have up to 90 days to review the application. You could potentially be looking at approximately a 5 month turnaround time before the loan is considered for partial or full forgiveness. 

If you have any questions at all, please feel free to give us a call at 888-405-7600 and ask to speak with your loan officer. As always, we will continue to adapt to any new guidance as it is released and communicate this with you as soon as possible. Thank you for your patience as we continue to receive and share these updates.

On behalf of our Bank Team, we appreciate your banking relationship and look forward to serving you again in the future.

We are committed to you, our customer, our community!

CBC Bank

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