Paycheck Protection Program

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Hawaii National Bank

Small Business Relief

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 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.

Updates

April 28, 2021: The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to provide funding to help restaurants and other eligible businesses keep their doors open. This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

For more information on the grant and how to apply, please visit the SBA website here.

March 31, 2021: The U.S. Small Business Administration’s Paycheck Protection Program (PPP) has been extended past the original March 31, 2021 deadline. Please contact your Hawaii National Bank Relationship Officer directly to apply or call (808) 528-7800 to get started.

March 4, 2021: The U.S. Small Business Administration’s Paycheck Protection Program (PPP) has been expanded for sole proprietors, independent contractors, and self-employed individuals. Eligible applicants who file a Schedule C as part of their federal tax return can now calculate their PPP loan amount using their Gross Income instead of Net Income.

General SBA PPP loan application forms and additional information are available here. We encourage interested applicants to prepare by gathering supporting documents. Please contact your Hawaii National Bank Relationship Officer directly to apply or call (808) 528-7800 to get started.

February 19, 2021: PPP loan forgiveness changes approved under the Economic Aid Act will be reflected on all forms and will be available in the Hawaii National Bank online forgiveness portal, effective March 5, 2021. Changes include new non-payroll costs, such as operations expenditures, property damage, supplier costs and worker protection expenditures, to help borrowers reach full forgiveness.

For Borrowers with PPP loans of $150,000 or less:

Use Revised Form 3508S. Qualified borrowers are not required to submit supporting documents with this new form. You can prepare by calculating your payroll costs and requested loan forgiveness amounts.

For Borrowers with PPP loans greater than $150,000:

You may complete and submit forgiveness applications at any time, but may want to wait until the new non-payroll categories listed above are available on March 5th. If you are not eligible, please apply using Form 3508. Please refer to the Forgiveness Application Guide to help you determine which forgiveness application to complete, Form 3508EZ or Form 3508.

January 20, 2021: The U.S. Small Business Administration’s Paycheck Protection Program has reopened for new Round 2 applications, including first-draw (did not receive a PPP loan yet) and second-draw applications (previously received a PPP loan).

Details for first-draw PPP applicants are available here.

Details for second-draw PPP applicants are available here.

The U.S. Small Business Administration also released a revised version of Form 3508S to accommodate streamlined PPP forgiveness for loans $150,000 or less. The revised form 3508S no longer requires borrowers to submit supporting documentation for payroll or non-payroll eligible costs as part of the forgiveness process. More details are available here. Hawaii National Bank’s Online Forgiveness Portal is not yet ready to accommodate the revised form 3508S but more information will be posted here as it becomes available.

January 8, 2021: The U.S. Small Business Administration’s Paycheck Protection Program will reopen for new applications on Monday, January 11, 2021, for borrowers who do not have a PPP loan with any financial institution. For borrowers who already have or previously had a PPP loan, second-draw PPP loans will open on Wednesday, January 13, 2021.

SBA PPP loan application forms are not yet available, so we encourage interested applicants to prepare by gathering supporting documents. Additional information is available through the SBA website. We will update this page as more information becomes available.

For new PPP borrowers, please refer here for a PPP loan overview.

For second-draw PPP borrowers, please refer here for more information.

Please contact your Hawaii National Bank Relationship Officer directly to apply or call (808) 528-7800 to get started.

December 22, 2020: Congress recently passed legislation that will provide additional relief to businesses negatively affected by COVID-19, including a new round of PPP loans. The Small Business Administration (SBA) has not yet released details but is expected to beginning in January 2021. Hawaii National Bank will provide updates as they become available.

December 1, 2020: The U.S. Small Business Administration recently released public data about PPP borrowers - specifically, the borrowers' names, addresses, exact loan amounts and who their PPP lenders were. As your bank, we did not publicly disclose the data and played no role in the decision to do so. Our commitment to your privacy is our top priority.

Unfortunately, we have heard that some third-parties may be using information from the court-ordered data release to market themselves to PPP customers. These communications may reference our bank's name and may even imply that we have some kind of relationship. You should be aware that we will communicate directly with you about your PPP loan and the forgiveness process. If you have any questions, please contact your Relationship Officer directly.

October 28, 2020: Please review the Forgiveness Application Guide first to determine which forgiveness application form is best for you. Form 3508EZ and Form 3508 filers can apply now using our online Forgiveness Portal. Form 3508S will available beginning November 14, 2020.

October 9, 2020: The SBA just released a streamlined application, Form 3508S, for borrowers with loans less than or equal to $50,000 (excluding borrowers with affiliates who received PPP loans totaling $2 million or more). We are working diligently to update our Forgiveness Portal to accommodate Form 3508S and will notify you as soon as the new application is available in the Portal.

October 1, 2020: All PPP borrowers should have received an email with a Forgiveness Request Link. If you have not received an email yet, please contact your Relationship Officer directly. Please see the Loan Forgiveness section below for more information.

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.

Source: ABA and SBA

May 15, 2020: The SBA and US Department of Treasury released the Paycheck Protection Program Loan Forgiveness Application today. We are carefully reviewing the application and instructions and will provide an update on the loan forgiveness process as soon as possible.

Source: SBA

May 13, 2020: Due to the high volume of PPP applications received, we are no longer accepting new applications at this time. We are working diligently to process the applications already received. Mahalo for your understanding.

May 6, 2020: Effective May 5, 2020, the SBA is extending the repayment date for the safe harbor from May 7 to May 14, 2020. For more, see the updated FAQ here.

Source: SBA

April 28, 2020: Effective April 28, 2020, the SBA issued new guidance for the PPP program that included a Limited Safe Harbor clause with respect to certification concerning the need for a PPP loan request. In conjunction with this new guidance, if you no longer need your PPP loan to support your ongoing operations, or if you misunderstood the requirements for forgiveness, you may return funds without penalty under safe harbor terms by May 7, 2020. Additional information on the Interim Final Rule outlining safe harbor regulations can be found here.

Source: SBA

April 27, 2020: Congress recently approved a second round of funding for the Paycheck Protection Program. We will be prioritizing previously submitted loan applications, but are also accepting new applications from those unable to submit during the first round of PPP assistance. Applications will be processed in the order received while PPP funding is available. We may not be able to process all applications received before the funds are depleted. Applications will be accepted beginning Monday, April 27, 2020.

If you have any questions, please contact your Relationship Officer or email PPPLoans@HNBhawaii.com.

All loan terms are the same regardless of the lender, and funds are limited, so it’s best to submit your application as soon as possible.

Loan Forgiveness

There are four steps for PPP Loan Forgiveness:

1. Online Portal Registration

- You should have received an email for access to your Forgiveness Portal. The email was sent from SBA.PPP.Forgiveness@hnbhawaii.com.

- If you did not receive the email, please contact your Relationship Officer directly.

2. Complete Forgiveness Application

- You will need to complete the application and upload documents in accordance with SBA guidelines to the Hawaii National Bank online portal.

- Please refer to the Forgiveness Application Guide to help you determine which forgiveness application to complete – Form 3508, Form 3508EZ, or Revised Form 3508S. The Hawaii National Bank online forgiveness portal will reflect any new changes to the forgiveness guidelines beginning March 5, 2021.

- Please refer to the Forgiveness Portal Guide for helpful instructions to complete the application in the Forgiveness Portal.

3. Hawaii National Bank Reviews Forgiveness Application

- HNB has up to 60 days to review a signed application and submit to the SBA.

4. SBA Forgiveness Decision

- The SBA has 90 days to review and issue the forgiveness decision.

- Borrowers can appeal the SBA's forgiveness decision directly with the SBA. However, SBA interim final rules around appeals have not yet been released.

Helpful Guides

Forgiveness Portal Guide: Step-by-step instructions for completing your forgiveness application in the Forgiveness Portal.

Download Guide

Forgiveness Application Guide: Guide to help you determine which forgiveness application is right for you: Form 3508, Form 3508EZ, or Form 3508S.

Download Guide

Loan Forgiveness - Where to Begin

To prepare for the forgiveness application, first determine which forgiveness form you should complete. There are three forgiveness forms - Form 3508, Form 3508EZ, and Revised Form 3508S. Borrowers with loans equal to or less than $150,000 should use the revised Form 3508S which will become available on the online portal from March 5, 2021. Borrowers with loans greater than $150,000 should first determine whether they are eligible for Form 3508EZ. If you do not qualify for Form 3508S or Form 3508EZ, please use Form 3508. Please refer to our Forgiveness Application Guide to help determine which form to use.

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

Revised Form 3508S – Refer to page 3

Loan Forgiveness Guidelines

Loan 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.

Your PPP loan can be partially or fully forgiven if proceeds are used within the Covered Period for:

· Payroll costs (at least 60% of loan proceeds)

· Mortgage interest, rent and utilities (no more than 40% of loan proceeds)

Any funds not used within the Covered Period will not be eligible for loan forgiveness.

Any portion of the funds that are not forgiven will need to be repaid. There is no prepayment penalty or fees for paying off the loan earlier.

You can apply for forgiveness as soon as proceeds have been spent. There is no need to wait for the Covered Period to end before applying for forgiveness (as long as proceeds were fully used). Payments will begin when your deferral period ends or after your forgiveness application is reviewed by the SBA. Loans awaiting SBA forgiveness decisions are considered deferred.

Please Note: The SBA continues to make revisions to the Paycheck Protection Program, including details regarding loan forgiveness, and information is subject to change. Please refer to the SBA’s website for the most up-to-date information.

Loan terms are the same for all borrowers:
- No collateral or personal guarantee required
- No fees and a 1.0% interest rate
- Loans can be fully forgiven
- Payments are deferred during the Covered Period and the following 10 months. Payments begin after the deferral period ends or after the SBA reviews your forgiveness application.
You can use PPP Loans for:
Your Employees (at least 60% of the loan funds can go to these items):
- Payroll costs (all costs mentioned in “How much can I borrow?”)
- Costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums
- Employee salaries, commissions, or similar compensations (except as excluded in “How much can I borrow”)
Your Business (up to 40% of the loan funds can go to these items):
- Payments of interest on any mortgage (but not payment or prepayment of principal)
- Rent and Utilities
- Interest on any other debt obligations that were incurred before February 15, 2020.

Questions

Loan terms are the same for all borrowers:
- No collateral or personal guarantee required
- No fees and a 1.0% interest rate
- Loans can be fully forgiven
- Payments are deferred during the Covered Period and the following 10 months. Payments begin after the deferral period ends or after the SBA reviews your forgiveness application.
You can use PPP Loans for:
Your Employees (at least 60% of the loan funds can go to these items):
- Payroll costs (all costs mentioned in “How much can I borrow?”)
- Costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums
- Employee salaries, commissions, or similar compensations (except as excluded in “How much can I borrow”)
Your Business (up to 40% of the loan funds can go to these items):
- Payments of interest on any mortgage (but not payment or prepayment of principal)
- Rent and Utilities
- Interest on any other debt obligations that were incurred before February 15, 2020.

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.

Small Business Relief