Small Business Relief
Paycheck Protection Program
Hawaii National Bank is committed to ensuring that Hawaii business owners receive the support and latest updates you need during the COVID-19 pandemic.
Congress recently passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to assist small businesses that have been impacted by the COVID-19 pandemic. The Paycheck Protection Program (PPP) was created to help small businesses cover certain business expenses like employee payroll costs, rent, mortgage interest, and utilities.
August 20, 2020: We will begin onboarding PPP borrowers to the Hawaii National Bank Forgiveness Portal in late August. Please note that each borrower must apply for loan forgiveness – forgiveness is not automatic. Please see the Loan Forgiveness section below for more detailed information.
June 11, 2020: The SBA and US Department of Treasury released an interim final rule to reflect changes made by the recently passed Paycheck Protection Program Flexibility Act (H.R. 7010). The SBA also published updated, streamlined loan forgiveness application forms for borrowers and lenders to use for loans made on or after June 5, 2020.
The interim final rule codifies several changes to the program. Specifically, it:
Confirms that borrowers that use less than 60% of their PPP loan amount for payroll costs during the forgiveness covered period will still be eligible for partial loan forgiveness.
Extends the end date of the covered period for a PPP loan from June 30, 2020 to Dec. 31, 2020.
Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender.
Extends the loan forgiveness period from eight weeks to 24 weeks. (For loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks.)
Clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the date SBA remits the forgiven amount to the lender.
Reiterates that the last day a lender can obtain an SBA loan number for a PPP loan is June 30, 2020.
The SBA is expected to issue additional revisions to its interim final rules to address changes made to loan forgiveness requirements by the PPP Flexibility Act. We are continuing to monitor information as released and will provide an update as soon as possible.
There are four steps for PPP Loan Forgiveness:
1. Online Portal Registration
- You will receive an email notification when your Forgiveness Portal access is ready - the email will be sent from SBA.PPP.Forgiveness@hnbhawaii.com.
- Email notifications will be sent in phases - the first phase will include loans greater than $150,000.
2. Complete Forgiveness Application
- You will need to complete the application and upload documents in accordance with SBA guidelines.
- Refer to the Borrower Forgiveness Guide for more information.
3. Hawaii National Bank Reviews Forgiveness Application
- HNB has up to 60 days to review a signed application.
4. SBA Forgiveness Decision
- The SBA has up to 90 days to review.
Loan Forgiveness - Where to Begin
To prepare for the forgiveness application, we recommend that you first determine which Forgiveness form you should complete. There are two forgiveness applications, Form 3508 and the simplified 3508EZ form, that will be available in the Forgiveness Portal. You can review the SBA’s Checklist for Using SBA Form 3508EZ to help you determine which application is right.
You can also begin preparing support documents for your forgiveness application. Please keep in mind that support documents vary depending on your application type and use of funds. In addition to submitting support documents, SBA guidelines also require borrowers to maintain certain types of information that may be requested by the SBA. Refer to SBA instructions for the most up-to-date guidance:
Form 3508 – Refer to page 10
Form 3508EZ – Refer to page 4
NOTE: The SBA continues to make revisions to the Paycheck Protection Program, and information is subject to change. As such, additional documentation and information may be required.