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Paycheck Protection Program (PPP)

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Paycheck Protection Program (PPP)

Thank you for trusting First National Bank Texas (FNBT) to assist you with your PPP loan. The PPP program has specific parameters for loan forgiveness as determined by the U.S. Small Business Administration (SBA). In order to ensure your company is granted the maximum amount of allowed forgiveness, we strongly urge our PPP loan recipients to keep and submit detailed records of how the loan amounts are allocated. You can stay up-to-date with the latest information directly from the SBA and from the U.S. Department of the Treasury.


PPP Loan Forgiveness Application For Loans Greater Than $50,000

What is Needed to Apply:

Common Errors on SBA Form 3508EZ:

  1. “SBA PPP Loan Number” will be provided by the bank – this can be left blank
  2. “Lender PPP Loan Number” is on the Note that was signed. If you do not have a copy, please leave blank
  3. The beginning “Covered Period” date should be the same as the “PPP Loan Disbursement Date”
  4. The “Covered Period” date range must be exactly 8 weeks or 24 weeks, depending on how long you needed to use the funds. Click here for date ranges.
  5. Line 7 – please make sure you divide Line 1 by by 0.60 (i.e., $100,000 / 0.60 = $166,667)
  6. Provide initials next to all applicable spaces on page 2
  7. Complete signature and date on the bottom of page 2
  8. Optional page 3 – enter Principal Name and Position in the disclosure box

Submit Documents:

Please ensure your application has been filled out properly based on the guidance provided above. When you are ready, please email your forgiveness package (application, addendum, and documentation) to ppp@1stnb.com. Once submitted, the SBA has 90 days to process the forgiveness applications. Please continue to keep a copy of any documentation for PPP forgiveness for your personal records. Should the SBA require any further information, we will contact you.


PPP Loan Forgiveness Application For Loans Less Than $50,000

What is Needed to Apply:

Common Errors on SBA Form 3508S:

  1. “SBA PPP Loan Number” will be provided by the bank – this can be left blank
  2. “Lender PPP Loan Number” is on the Note that was signed. If you do not have a copy, please leave blank
  3. Provide initials next to all applicable spaces
  4. Complete signature and date on the bottom
  5. Optional page 2 – enter Principal Name and Position in the disclosure box

Submit Documents:

Please ensure your application has been filled out properly based on the guidance provided above. When you are ready, please email your forgiveness package (application, addendum, and documentation) to ppp@1stnb.com. Once submitted, the SBA has 90 days to process the forgiveness applications. Please continue to keep a copy of any documentation for PPP forgiveness for your personal records. Should the SBA require any further information, we will contact you.


Frequently Asked Questions about PPP

How do I calculate the “Average Monthly Payroll” on the application?

  • Current Businesses: Average monthly payroll for 2019, excluding costs over $100,000 annualized basis for each employee.
  • Seasonal Businesses: Average monthly payroll for the time period between February 15, 2019 and June 30, 2019, excluding costs over $100,000 annualized basis for each employee.
  • New Businesses: Average monthly payroll to be calculated from January 1, 2020 to February 29, 2020, excluding costs over $100,000 annualized basis for each employee.

I have submitted my application – what should I do now?

  • Current bank customers should consider opening a new DDA for the PPP loan proceeds. This will ensure proper documentation for possible future loan forgiveness and expedite loan funding.
  • New bank customers should collect business entity documentation (state filings, EIN, and operating agreement/bylaws, if applicable) and driver’s license information. It is recommended to have the bank create a DDA specifically for the PPP loan proceeds. This will aid in proper documentation for possible future forgiveness and expedite loan funding.
  • Consider applying for the SBA’s Economic Injury Disaster Loan (EIDL) – see below for more information.

Disclosures and Acknowledgements

  • Amounts forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in total salary or wages of any employee in excess of 25% of their prior year total salary or wages.  
  • Borrowers who re-hire workers previously laid off will not be penalized for having a reduced payroll at the beginning of the period. 
  • These funds can also be used for: group healthcare benefits, paid sick or medical leave, insurance premiums, and interest on any other debt obligations incurred prior to February 15, 2020. 
  • I understand that I must provide payroll documentation to the lender so that they may verify the PPP loan amount. The lender will calculate the eligible loan amount using the documents I have submitted.
  • I understand that loan forgiveness will only be provided with documentation of future payroll expenses, and that I must meet all eligibility requirements as defined by the SBA’s PPP program.

Economic Injury Disaster Loan (EIDL)

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are also currently eligible to apply for a direct loan with the SBA. Click here to apply for assistance.

Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.

For information on additional SBA lending options, please click here.