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Urgent Alerts, COVID-19 Messages, Branch Updates & SBA/PPP Info

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.


 

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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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August 10, 2020 -

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.

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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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The Customer Support Center’s hours are 9 AM to 6 PM. They can be reached at 425.257.9000.


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.


BRANCH UPDATES

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.


BANKING OPTIONS

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

U.S. Chamber of Commerce Small Business Guide Checklist for Emergency LoansPDF Download

SBA Paycheck Protection Program

SBA Economic Injury Disaster Loan - Apply directly with the SBA

SBA Disaster Loan Assistance

SBA Disaster Assistance in Response to the Coronavirus

Washington State Employment Security Department


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.

Here are more tips to protect yourself financially from the impact of the coronavirus.

Avoid scams while finding help during quarantine

Grandparent scams in the age of Coronavirus

While you’re at home, spot the scams

Want to get your Coronavirus relief check? Scammers do too.

60 and over in the time of COVID-19? Read on.


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