SBA Paycheck Protection Program (PPP)
We’re dedicated to our community and the businesses that help fuel Hawaii’s economy. As we navigate through these challenging times, we’re here to help you with your business. Small Business Administration (SBA) Paycheck Protection Program (PPP) provides small businesses with funds to pay up to 8 weeks of payroll costs, including benefits. Funds can also be used to pay interest on mortgages, rent and utilities. Borrower fees are waived for SBA PPP Loans and will be available to all businesses that qualify.
UPDATES AS OF MAY 22, 2020:
With many of our PPP applications funded, here’s what you need to know about the forgiveness process:
1
The earliest you can apply for forgiveness is 8 weeks after receiving your funds. We are not accepting applications at this time for forgiveness.
2
We are actively working on an online solution to apply and easily upload the required forgiveness documentation. We expect you will not need to provide your SBA PPP loan number. Please continue to check back regularly as we will post additional instructions once available.
3
In order to prepare for forgiveness, please make sure you have your documents in order. You can see a list of required document examples here.
Also, as a reminder, we are not accepting new SBA PPP applications online.
For your convenience, please check out the quick links below for the SBA Paycheck Protection Program:
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Frequently Asked Questions:
APPLICATION TO SECURE FUNDS:
The average monthly employee healthcare and retirement contributions can be included in the loan request amount. Please provide the following documents with your application:
Our team is working quickly to process applications. Due to the high volume of applications we have received, you may experience a delay in being notified of your application status. As we process your loan application you will receive a status update via email.
We were able to successfully process your loan request with the SBA and funding is conditionally approved. Your loan documents are being prepared for closing and one of our bankers will be in touch with you soon.
Business customers that have submitted multiple applications from the same email address will receive one email if all requests have the same status.
After careful consideration, not all applicants will be approved. We will notify you via letter if your application is declined. A few examples why an application may be declined include: application and/or supporting documentation insufficient, applicant outside of ASB geographic market (mainland applicant), ineligible per Small Business Administration or ASB guidelines, or if the applicant has previously received PPP loan.
Reasons provided via denial letter:
- Existing PPP: We received notification from the SBA that a Paycheck Protection Program loan was already processed for your business. This means that we cannot submit an additional application for this business.
- Ineligible: Certain entity types are ineligible to apply for the PPP Loan. Based on SBA guidelines, your business fell into this category.
- Insufficient Information: We are only processing fully completed applications that include all supporting financial and ownership documents required by the SBA.
- Mainland Applicant: ASB was accepting requests for Hawaii applicants only, as we currently do not operate outside of the State of Hawaii.
Please email us your withdraw request to ASBCAREShelp@asbhawaii.com and include your business name in email.
The approved loan amount along with all other loan details will be shared with you at the time of loan closing. One of our bankers will be in touch with you once your loan is ready to close.
Loans are typically funded within 1-2 business days after we have received your signed loan documents and after ASB has conducted a final review.
Funds will be distributed directly to your ASB business checking account. If you do not have an ASB account, we will ask for your business account information at the time of loan closing and wiring instructions.
LOAN FORGIVENESS:
Your entire PPP loan may be forgiven if you use the money for eligible expenses during the eight-week period after you received the loan. According to the Small Business Administration, at least 75% of the loan proceeds must be used for payroll costs. The remaining 25% of the loan proceeds may be used for certain non-payroll expenses, including eligible mortgage interest, rent, utilities and costs related to the continuation of certain health care and insurance benefits. Under SBA guidelines, your loan may not be fully forgiven if you’ve reduced the number of employees or the amount of employee compensation.
You will be able to apply for loan forgiveness through ASB, eight weeks after your loan has been funded. When you apply, you will need to provide documents supporting your eligible expenses and certify that the documents are accurate and that you used the funds to pay for eligible expenses under the Paycheck Protection Program. We are actively working on a solution that will allow you to easily upload the required forgiveness documentation online. We will post additional instructions on our website once available.
Although documentation requirements may change, you will likely 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
Any unforgiven portion of a PPP Loan will continue to accrue interest at 1% and have a maturity date that is two years from the date of the note. The first payments are not due for six months after you received your loan.
ASB will make a decision on your forgiveness request within 60 days of receiving your completed forgiveness application and will notify you of any unforgiven amounts.
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.
GENERAL INFORMATION:
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 eight weeks. The loan may be partially or fully forgiven if the business retains its full-time employee count, and maintains salaries and wages.
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.
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.
Additional Resources:
For more information about the SBA PPP, please visit the following links:
