Urgent Alerts, COVID-19 Messages, Branch Updates & SBA/PPP Info
Our branches are open for drive-up service and appointments only. We have been experiencing long drive-up wait times and recommend making an appointment or using our digital/mobile banking tools.
Should you have additional questions regarding PPP loan forgiveness, please contact your local Coastal banker or reach out directly to the PPP Support Center at 425.349.9097 or [email protected]
Loan Forgiveness Calculators:
Loan Forgiveness Application Form EZ
Loan Forgiveness Application Form 3508S
Loan Forgiveness Application Form 3508
Loan Forgiveness Application Submission: Click here to upload files securely.
November 25, 2020
November 12, 2020
Because Seattle small businesses may be eligible for this opportunity, we are sharing the information that we have.
Seattle is accepting applications for small business stabilization grants. You have until Nov. 30 to apply through the Office of Economic Development. The fund will be allotting $4 million in grants.
To be eligible businesses or nonprofits must have 25 or fewer employees and have an annual net revenue less than $2 million.
To learn more visit:
October 28, 2020
PPP Ownership Changes Update and an Overview of Forgiveness Applications
Earlier this month, the Small Business Administration (SBA) issued guidance regarding changes of ownership for businesses with Paycheck Protection Program (PPP) loans.
Additionally, we know that the different types of forgiveness applications for the PPP program might be confusing, so we have included an outline that should help you determine which application is appropriate for your situation.
CHANGES OF OWNERSHIP
If you are in the process of or are contemplating a change of ownership in your business, please notify the bank immediately.
On October 2, 2020 the SBA released Procedural Notice 5000-20057 PPP Loans and Changes of Ownership. The purposes of the PPP, a “change of ownership” is considered to occur when (1) at least 20% of the common stock or other ownership interest of a PPP borrower is sold or otherwise transferred, whether in one of more transactions, including to an affiliate or an existing owner of the entity, (2) the PPP borrower sells or otherwise transfers at least 50% of its assets (measured by fair market value), whether in one or more transactions, or (3) a PPP borrower is merged with or into another entity.
There are no restrictions if the PPP Note is fully satisfied prior to closing the sale or transfer. However, if the PPP loan has not been fully satisfied then either the bank or the SBA must approve of the change of ownership. There could be cases that the bank can’t approve the change of ownership and SBA approval must be sought. SBA has up to 60 days to review a change of ownership. Please reach out to the bank as early as possible in the change of ownership process to ensure that you are able to close your sale or transfer in a timely manner.
Here is an overview of the different Small Business Administration (SBA) Forgiveness Applications for the Paycheck Protection Program (PPP):
Complete the 3508S Form if you:
- received a PPP loan of $50,000 or less, AND
- together with your affiliates, didn’t receive PPP loans totaling $2,000,000 or more.
Complete the 3508EZ Form if you:
- are a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and didn’t include any employee salaries in the calculation of average monthly payroll on your application form;
- you didn’t reduce annual salary or hourly wages of any employee by more than 25% during Covered Period/Alternative Payroll Covered Period compared to period between January 1, 2020 and March 31, 2020, AND
- didn’t reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period (taking into account the available safe harbor exemptions for: (a) reductions that arose from borrower’s inability to (i) rehire individuals who were employees on February 15, 2020 and (ii) hire similarly qualified employees for those unfilled positions on or before December 31, 2020, or (b) reductions in an employee’s hours that the borrower offered to restore and the employee refused).
- you didn’t reduce annual salary or hourly wages of any employee by more than 25% during the Covered Period/Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020, AND
- you were unable to operate during the Covered Period at the same level of business activity as before February 15, 2020 due to compliance with maintenance of standards of sanitation, social distancing, or other COVID-19 work or customer safety requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration between March 1, 2020 and December 31, 2020.
Complete the 3508 Form if you:
- do not qualify to file either the SBA Form 3508EZ or 3508S.
Regardless of the Forgiveness Application you complete, remember that you must retain all records relating to the PPP loan, including documentation supporting your original application certifications and material compliance with PPP requirements, for six years after the date the loan is forgiven or repaid in full.
The following steps will ensure that your application is complete and processed promptly:
- Send your files in securely. Click here to upload files.
- 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.
Should you have additional questions regarding PPP loan forgiveness, please contact your local Coastal banker or reach out directly to the PPP Support Center at 425.349.9097 or [email protected].
October 9, 2020
The Small Business Administration last night released a much-anticipated, streamlined loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less.
The two-page forgiveness application, Form 3508S, includes certifications from the borrower but does not require calculations to be submitted with the application. Applicants must submit documentation verifying forgivable payroll and non-payroll expenses. Borrowers are required to retain the documentation supporting their certifications for six years, but do not need to submit it.
Once the application is received, the lender must confirm that it received the borrower’s certifications and documentation. “Providing an accurate calculation of the loan forgiveness amount is the responsibility of the borrower,” SBA said in an interim final rule, reiterating previous guidance that “lenders may rely on borrower representations. . . . [T]he lender does not need to independently verify the borrower’s reported information if the borrower submits documentation supporting its request for loan forgiveness and attests that it accurately verified the payments for eligible costs.”
September 30, 2020
An update regarding SBA PPP Forgiveness
It has been Coastal’s pleasure to help our clients through the PPP process. It’s been almost two months since the SBA began accepting forgiveness applications and we want to update you on how the process has gone, and what to expect timewise regarding the PPP forgiveness process. We’ve had a lot of questions about status and updates and want to alleviate some of the uncertainty.
As a refresher, Coastal has 60 days to approve, reject, or reject in part, a completed loan forgiveness application. This timer does not start until a complete application is received. Once completed on Coastal’s end, the application is sent to the SBA who will then have 90 days to approve, reject, or reject in part, the forgiveness application.
As of this writing, the SBA has indicated, and we predict, that the SBA will likely take the full duration in order to issue a response on these forgiveness applications. This means even the earliest of applications will not start receiving responses until November-December. There is also a very real possibility the SBA may take longer.
The entire PPP loan program was quickly put together, as was the forgiveness process. This was a herculean task from an organizational and administrative standpoint. As a result, the SBA is almost certainly understaffed and has not fully trained the staff they do have. Therefore, delays are very likely.
While we know many of our clients are eager to get the process completed; Coastal cannot move the SBA any faster; as much as we wish we could. These delays are not just for Coastal clients. As of this writing the SBA has not approved a single loan forgiveness application across the entire country as far as we can tell.
Since the PPP program is a bit of a beast, we do ask our clients to have a little patience with the program. We are certain there is no bank more knowledgeable and prepared to handle any issues regarding PPP forgiveness. We will work tirelessly to get your applications in and completed as soon as possible, while also doing as much quality review to ensure we get our clients as much forgiveness as possible with as low a risk of issues.
We know the process takes time, and we understand our customers are go-getters who really want to get this off their plate. However, rest assured that Coastal will notify each and every client when a decision is received from the SBA.
We thank you for your ongoing support of Coastal Community Bank and we will continue to keep you updated. Questions can always be sent to [email protected] or call 425.349.9097.
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.
Below is a list of suggested documentation to maintain against the unlikely event of governmental enforcement action.
- Document the reason why you needed a PPP Loan. This can include, but is not limited to:
- What were the financial projections at the time of the application?
- Was the business closed as a result of a state -order?
- Statement of Cash Flow, Balance Sheet, Income Statement supporting that the company financial position was deteriorating during the time of application.
- For public companies, any relevant disclosures to the SEC, especially those disclosures that indicate an inability to continue as a going concern.
- When submitting the application, were your employees at risk of being fired or their salary or hours reduced?
- Had you laid off staff, or were you preparing to do so?
- 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.
Zelle Fraud Alert
We are learning from customers that there has been some fraudulent activity with Zelle (mobile money transferring). Please be extra diligent in verifying messages are real. Coastal Community Bank will never call or text you and ask you for your username or password. If in doubt, please call our customer care center (425.257.9000) to verify before acting on any unknown text or phone messages.
- Customers are receiving a text message stating there may be fraudulent transactions on their account and requesting a reply back - “yes” or “no” to whether or not they were their transactions.
- When the customer replies to the text, they will then receive a call from a spoofed number that shows up as Coastal Community Bank.
- The person on the other line will send an email with a link to change the customer’s username and password.
- Once completed, customers will begin receiving emails and texts about Zelle payments/transfers created and money transferring out of the account.
- The next time the customer tries to login, their password has already been changed by the individual perpetrating the fraud.
If you have received and shared your banking credentials (username, password) on any message, please contact our customer care center immediately.
JUST THE FACTS: WHAT YOU NEED TO KNOW DURING THE COVID-19 CRISIS
Since 1997 Coastal has been here for you good and bad times. We have built a bank with a strong balance sheet as reflected in our Bauer 5-Star Rating. As the situation evolves, things are changing rapidly, and we want to make sure you have all the information you need to manage your banking as easily as possible.
We will post updates about closed branches to our website (above under Important Updates) and social media.
We have taken steps to ensure branches can remain open with relatively limited staff, but that will impact service levels, so we ask for your patience in those situations. If drive-up lines are long, our secure night drops are being processed multiple times during the day by two staff members.
If you are a customer of a branch that is temporarily closed, know that we will work to re-open it as soon as we can. However, should you need access to a safe deposit box, we will arrange for staff to be at a closed location for individual appointments for clients as needed.
While we’ve modified our operations, closing our lobbies and moving most transactions to the drive-up, we are still here to support you.
- We encourage all customers to do their in-person banking using our drive-up windows. All 14 branches have drive-ups.
- Our bankers stand ready to assist you and can be reached by phone and email.
- Our mortgage lenders are working with clients via phone and email.
- Our credit card processing and treasury management staff are working with clients via phone and email.
- Use your camera-enabled mobile device and our mobile app to deposit checks.
- Transfer money to family or friends using Zelle®.
- Use online banking to pay your bills.
- Call our Customer Service Team (425.257.9000) to ask questions via telephone.
- The Night Drop Box at all locations will be checked multiple times per day.
- Access 30,000+ surcharge-free ATMs across the country with the MoneyPass® ATM Network. Find an ATM near you.
IMPORTANT BUSINESS RESOURCES
DON’T FORGET ABOUT CYBER HYGIENE
In addition to your personal health, you also need to practice safe cyber hygiene. Many scammers prey on people during a time of crisis. The Federal Trade Commission has tips to protect yourself from possible coronavirus-related scams.
- Make sure your anti-virus and anti-malware software is current.
- Do not click on links or attachments from unknown sources.
- Watch out for bogus claims for vaccinations or cures.
- Be cautious of websites asking for donations.
YOUR MONEY IS SAFE
Since 1933, no depositor has ever lost a penny of FDIC-insured funds. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC provides Frequently Asked Questions and other resources for consumers that we encourage you to review.