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See info below on the PPP Loan Forgiveness Process | We are no longer accepting new PPP loan applications.

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Paycheck Protection Program

IMPORTANT UPDATES

Urge the Senate to Simplify Forgiveness for PPP Loans $150K and Under

SBA Information on the PPP

SBA PPP FAQs

SBA PPP Loan Forgiveness FAQs

PPP Forgiveness FAQs

Forgiveness Checklist for Borrowers

Loan Forgiveness Calculators:

Loan Forgiveness Application Form EZ

Loan Forgiveness Application Form

Loan Forgiveness Application Submission: Click here to upload files securely.


August 13, 2020 - 

Small Businesses Targeted Through Spoofed SBA COVID-19 Relief Webpage

The Cybersecurity and Infrastructure Security Agency issued an alert yesterday about an unknown malicious cyber actor who is spoofing the Small Business Administration's COVID-19 relief webpage through phishing emails. The phishing emails contain a malicious link to a fake page used for re-directs and credential stealing.

The phishing email subject line currently reads, “SBA Application – Review and Proceed,” and the sender is marked as “[email protected][.]gov.” 

The alert provides more information, including the IP address, indicators of compromise and recommended mitigations for small businesses and organizations to take to strengthen their cybersecurity posture. Read the alert.

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July 30, 2020

PPP forgiveness process

As the Continuing Small Business Recovery and Paycheck Protection Program Act is debated in Congress, there is a great deal in the news about changes coming to the Paycheck Protection Program (PPP). Currently, proposals range from automatic forgiveness of loans under $150,000 to legislation that would make the process more streamlined for larger loans.

We know you have questions and that these decisions will impact the process for your application for forgiveness and when you may decide to apply. We continue to monitor this very closely and want to assure you that as soon as the changes are approved, we will let you know the details. However, nothing is approved as of today.

If you have not yet weighed in on the move to auto-forgive PPP loans under $150,000, the American Bankers Association continues to urge business owners to reach out to their representatives and has provided a simple tool for you to do so. Please see below.

Also, if you know of any businesses still in need of a PPP loan, the final day to apply is August 8. Please ask them to contact your Coastal banker and we can walk them through the process.

It's not too late to urge the Senate to pass legislation to forgive PPP loans $150K and under

Since April 3, bankers across the country have assisted small businesses in their communities by providing loans through the Small Business Administration’s Paycheck Protection Program. To date, small businesses have received over 4.8 million loans through the program.

As the Paycheck Protection Program enters the forgiveness phase, the process should be easy, simple and less technical for small business owners who borrowed $150K or less, which accounts for 86% of all PPP loans.

Ask your senators to support legislation to expedite the forgiveness process for most borrowers who received loans through the PPP.

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July 27, 2020

NOTE for loans under $150,000: As of 07/24/2020, the bill that is currently in Congress that would automatically forgive PPP Loans under $150,000 has not yet been passed, however there does seem to be increasing support for the idea. Only you can determine if it is best for your business to wait to see if this legislation passes, or if you should apply for forgiveness under the current guidelines. At this time, we do not know what impact passage of the bill might have on applications that are submitted prior to automatic forgiveness being approved by Congress.

Coastal Community Bank will begin accepting applications for Paycheck Protection Program (PPP) Loan Forgiveness on Monday, July 27. The Small Business Administration (SBA) will open its processing platform on August 10, and we will start submitting complete applications at that time. The 90-day time period for the SBA to issue its decision on forgiveness will not start until we have a complete application and submit it to the SBA.

There has been some recent indication that Congress may create an intermediate Forgiveness Application for loans between $150,000 and under $1 million to simplify the process. We do not know how this might impact your application should it already be submitted to Coastal and the SBA.

The 90-day time period for the SBA to issue its decision on forgiveness will not start until we have a complete application and submit it to the SBA.

Please read this notice carefully, and work with your Coastal banker to ensure your application includes all of the documentation necessary for its submission to the SBA.

The SBA has issued two application forms for PPP Loan Forgiveness:

  • Form 3508EZ and
  • Form 3508

Of the two, Form 3508EZ is a streamlined forgiveness application which is available only to those borrowers who fall into at least one of three SBA Criteria Boxes. To use the EZ form, only one box needs to be met. If a Borrower meets these criteria, they can use the EZ form without having to fit into any other box.

We have posted links to both revised PPP Forgiveness Applications below:

For your reference, we’ve provided a simple borrower checklist.
https://coastalbank.com/_/kcms-doc/198/58405/forgiveness-checklist-for-borrowers.pdf

The following steps will ensure that your application is complete and processed promptly:

  • Send your files in securely. Click here to upload files.
  • Use the SBA Criteria Questions to determine which application to use.
  • Understand that any Economic Injury Disaster Loan (EIDL) advance you received will be deducted from the amount of your PPP Loan that will be forgiven.
  • Double check that you have all of the necessary documentation included with your application. An incomplete application missing documentation will delay processing of your request.

If you have questions, you may find that many of them are answered in the PPP Forgiveness FAQ.  

https://coastalbank.com/_/kcms-doc/198/57844/PPP-Forgiveness-FAQ-06242020.pdf

Should you have additional questions regarding PPP loan forgiveness, please contact your local Coastal banker or reach out directly to the PPP Support Center through the number or email below.

425.349.9097

[email protected]

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July 17, 2020

As we prepare for the forgiveness phase of the Paycheck Protection Program (PPP), we thought it would be helpful to share some additional best practices around document retention for your PPP Loan. While most of our PPP borrowers will never hear from the Small Business Administration (SBA) for an audit, it doesn’t hurt to be prepared, just like you are with your tax records. We have listed some best practices that you can use in order to make sure the forgiveness process goes smoothly, and you have the records available should you need them in the future. This is information for you to retain and is not part of your application for loan forgiveness. 

The SBA reserves the right to determine if a borrower’s application was made in good faith at the time of application based on the certification made by borrowers that they needed a PPP Loan at the time of application. Additionally, other agencies, like the Department of Justice, may investigate into whether a borrower made a good faith certification of need for a PPP Loan. Because this could happen in the future, we recommend that you record facts and actions while they are fresh in your mind.

Below is a list of suggested documentation to maintain against the unlikely event of governmental enforcement action.  

  1. Document the reason why you needed a PPP Loan. This can include, but is not limited to:
    1. What were the financial projections at the time of the application?
    2. Was the business closed as a result of a state -order?
    3. Statement of Cash Flow, Balance Sheet, Income Statement supporting that the company financial position was deteriorating during the time of application.
    4. For public companies, any relevant disclosures to the SEC, especially those disclosures that indicate an inability to continue as a going concern. 
  • How many employees were on payroll at the time of the application?
    1. When submitting the application, were your employees at risk of being fired or their salary or hours reduced?
    2. Had you laid off staff, or were you preparing to do so?
  1. Did you have access to funds or other loans on reasonable terms during the time of application?

It is recommended that you retain these documents along with both your complete original PPP Application, as well as your Forgiveness Application.

According to the SBA, all records relating to the Borrower’s PPP loan, including:

  • documentation submitted with the PPP loan application
  • documentation supporting the borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan
  • documentation necessary to support the borrower’s loan forgiveness application
  • documentation demonstrating the borrower’s material compliance with PPP requirements

must be retained for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of SBA, including representatives of its Office of Inspector General, to access such files upon request. 

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Information on SBA Disaster Loans for COVID-19

What does the new SBA disaster assitance mean for businesses in Washington?

New federal legislation and appropriations has opened up the possibility for small businesses to receive assitance for econominc loss due to COVID-19. Details of eligibity and administration of this assitance from SBA are still being addressed by the SBA. Information can be found here Three Step Process SBA Disaster Loans and here SBA information on Coronavirus Assistance.

Businesses must apply directly with the SBA either 1) online; 2) in-person at a disaster assistance center; or 3) by mail.  If the borrower has an existing SBA loan with Coastal Community Bank the borrower can contact the Bank to see what can be done. The link to the site is here SBA.     

SBA Preferred Lending Partner

As an SBA Preferred Lending Partner, our decisions are made locally, which means faster answers for you. Our experienced staff will help you determine if an SBA Loan is right for you.

  • Ideal for purchasing and refinancing existing businesses
  • Government-assisted help for businesses that might otherwise have difficulty getting approved
  • Special financing for qualifying businesses
  • Competitive rates for a wide range of business needs:
    • Commercial real estate purchase
    • Construction
    • Business acquisition or expansion
    • Equipment/inventory purchase
    • Working capital
    • And more
  • Lending options available for start-up businesses
  • Quick, local decision-making and processing
  • Attentive, friendly service from start to finish

Resources

The Small Business Administration in partnership with SCORE offers detailed information on starting a business, financing and managing. Their website, SBA.gov, is an excellent resource regardless of whether you are considering SBA Loans or looking for more information on running a business.

 

                    

As a preferred Small Business Administration (SBA) Lender, Coastal Community Bank is a leader in working with businesses to find the best borrowing solutions to meet their needs. Since the Paycheck Protection Program (PPP) started, we have helped more than 2,800 businesses with PPP loans, ranking among the top producers in the country based on asset size.

We have been carefully tracking a proposed new SBA loan program and believe it might be of interest to your business.

Once this loan program is launched, there may be heavy demand for it and Coastal would like the opportunity to work with you. We have several SBA loan specialists who will be ready to help you determine if this loan is a good fit for your business. If you are interested, we encourage you to contact one of our experienced Relationship Managers now to begin preparing.

Small Business Administration (SBA) 7(a) Loans to Recovery Sector Businesses:

Authorizes $100 billion in long-term, low-cost loans to recovery sector businesses, which include seasonal businesses and businesses located in low-income census tracts that meet the applicable SBA revenue size standard, have no more than 500 employees, and demonstrate at least a 50 percent reduction in gross revenues.

Loan amounts would be available at up to twice the borrower’s annual revenues, not to exceed $10 million. The loan would have a 100% SBA guarantee and maturity of up to 20 years with a one percent fixed interest rate to the borrower.

Waives the SBA’s credit elsewhere test and allows the borrower to defer loan and interest payments for the first two years.

Allowable loan uses include working capital, acquisition of fixed assets, and refinancing existing indebtedness.

Relationship Managers

John Weber  425.257.1656

Debbie Webber  425.402.3109

Noah Bracking  360.651.5531

Corbin Resseguie  425.257.1667

Pamela O'Dell  425.402.3108

Matt Reed  360.436.4970


NOTE:
This is the current proposed guideline for a 7(a) loan program, until it is passed by Congress and signed into law it is subject to change. Extensions of credit are subject to Bank approval. This is not a commitment to lend; terms are subject to change. Check with us for our current terms.

 

Coastal Community Bank's agreement and commitment to lend money is contingent on the Bank's final underwriting approval and proper documentation and subject to credit approval.