Your entire PPP loan may be forgiven if you use the money for eligible expenses during the 24 week period after you received the loan. To receive full loan forgiveness, a borrower must use at least 60% of the loan proceeds for payroll costs, and not more than 40% of the loan forgiveness amount may be attributable to non-payroll expenses (e.g. mortgage interest, rent, utilities). Under SBA guidelines, your loan may not be fully forgiven if you’ve reduced the number of employees or the amount of employee compensation.

Any unforgiven portion of a PPP loan will continue to accrue interest at 1%, and have a maturity date that is two years for loans made by 6/4/20 and five years for loans made on or after 6/5/20. Borrowers have a 10 month deferral period before they must begin to repay any unforgiven loan funds. This means that you must begin paying principal and interest 10 months after the end of the 24-week period after you received the loan, unless you apply for forgiveness. If you apply for forgiveness, we will notify you of any unforgiven amount and the date that your first payment is due.

Borrowers are eligible to apply for loan forgiveness eight weeks after their loan has been funded. You must apply for forgiveness through ASB. An online portal is coming soon to help you apply for loan forgiveness and upload required documents. All applications must be submitted through the portal. At this time we will not accept applications by email, or paper applications by mail or in our branches.

All applications must be submitted through the portal. At this time we will not accept applications by email, or paper applications by mail or in our branches.

• ONLINE PORTAL REGISTRATION: Look out for an email invitation to register from ASB CARES Customer Portal <asbcareshelp@asbhawaii.com> which you will receive by September 30, 2020. Upon receipt of your email invitation, the link will be available for 7 days to create your password. Once this is created, you may visit the portal to apply at any time.
   
• ONLINE APPLICATION: Please confirm your business information and upload your payroll and non-payroll expense information and documentation. An incomplete application may cause a delay with your loan forgiveness request. Please don’t forget to upload your supporting payroll and non-payroll expense documentation.
   
• ASB REVIEW: We will review the information and documentation you submit through the Customer Portal and contact you if additional documents are required. Your patience is appreciated as the review may take up to 60 days to complete. We will notify you of your potential forgiveness amount prior to submitting to the SBA for final approval.
   
• SBA FORGIVENESS DECISION: The SBA will notify ASB of their final decision on the potential forgiveness amount within 90 days of ASB’s submission. We will notify you of the SBA’s decision, final forgiveness amount, and first payment date if applicable. Notification of your final forgiveness amount may take up to 150 days from submission of a complete loan forgiveness application due to the volume of applications and required SBA review.

Although documentation requirements may change, you may need to submit the following documents:

• Payroll tax filings reported to the IRS
• Payroll summary reports reflecting FTE headcount and individual salary and wages
• State income, payroll, and unemployment insurance filings
• Documents verifying any retirement and health insurance contributions
• Payment receipts, canceled checks, bank statements, or other documents verifying payment on covered mortgage interest, lease, or utility payments

For information on what documents are required:

• Form 3508 Standard (refer to page 6)
• Form 3508EZ (refer to page 4)

The rules and guidance regarding forgiveness are subject to change and the information provided in these FAQs are for general informational purposes only and should not be construed as advice. If you would like more detailed information regarding forgiveness requirements, we’ve included a few helpful resources below.

• U.S. Department of the Treasury
• Small Business Administration Loan Forgiveness Application
• Interim Final Rule
• Revision to Interim Final Rule
• Small Business Administration Frequently Asked Questions
• U.S. Chamber of Commerce Guide to PPP Loan Forgiveness
• U.S. Senate Committee on Small Business & Entrepreneurship

The SBA Paycheck Protection Program is a loan program established by the Coronavirus Aid, Relief, and Economic Security Act to help small businesses retain and pay their employees. The loan proceeds cover the business’ payroll cost, mortgage interest, rent, and utilities for 24 weeks. The loan may be partially or fully forgiven if the business retains its full-time employee count, and maintains salaries and wages.
 
To learn more, visit the U.S. Treasury website, where they have a list of FAQs and more information on the program: https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf. You can also visit the SBA PPP website.

If you received a U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) between January 31, 2020 and April 2, 2020 you may be able to use your PPP loan to refinance the EIDL loan as follows:

• If the EIDL loan was used for purposes other than payroll, you may, but are not required to refinance the EIDL loan with the PPP loan.
• If the EIDL loan was used to cover payroll costs, the PPP loan must refinance the full amount of the EIDL loan.

If PPP loan proceeds allocated to refinance your EIDL loan were disbursed directly to you, you must remit the funds directly to the SBA using the U.S. Treasury website Pay.gov (https://pay.gov/public/form/start/3723407). You can obtain your EIDL loan payoff information by contacting the SBA Disaster Loan Servicing Center at (800) 736-6048.

To comply with the SBA’s program requirements, American Savings Bank reports all SBA loans including your PPP loan payment activity to the credit bureaus, such as Experian and Equifax.

For credit report questions please contact:

• Experian
  Experian.com
  1(888)-EXPERIAN
  PO Box 2002
  Allen, TX 75013
   
• Equifax
  Equifax.com
  1(800) 685-1111
  PO Box 740241
  Atlanta, GA 30374
   

Please visit the SBA site https://www.sba.gov/disaster-assistance/coronavirus-covid-19 for more information on other SBA loan options. Economic Injury Disaster Loan requests are accepted directly through the SBA site: https://covid19relief.sba.gov.

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