Paycheck Protection Program (PPP)

The PPP was formed under the CARES Act and administered by the SBA to make loans to businesses impacted by COVID-19. This unique program includes a provision for the SBA to forgive up to the full amount of the loan, if used for eligible expenses.

Now Accepting Second Draw PPP Applications (As of january 15, 2021)

Seattle Bank is now accepting Small Business Administration (SBA) Paycheck Protection Program (PPP) applications from current Seattle Bank PPP borrowers seeking a “Second Draw” loan. Visit here to begin the application process.

We expect to begin serving “First Draw” PPP loan applicants next week.  These are businesses and organizations that did not receive PPP funding in 2020.  We encourage “Second Draw” applicants to apply with their original PPP lender, as it will expedite application processing time.  However, we plan to accept Second Draw applications next week from businesses that elect to use Seattle Bank rather than the lender that did their original PPP loan. We will share information here when we begin accepting these applications. For more details on the PPP lending program, visit the SBA website.

Seattle Bank’s team is dedicated to supporting local organizations with this critical funding and providing timely communications throughout the process. If you have questions, please email [email protected] and our team will respond as quickly as possible.

 

PPP Loans - First Draw vs Second Draw

 

FIRST DRAW

SECOND DRAW

Loan Amount

• 2.5x Ave Monthly Payroll
• Up to $10MM

• 2.5x Ave Monthly Payroll
• 3.5x for Hospitality Industry (NAICS Code=72)
• Up to $2MM

Terms

• 5 years
• 1%
• Deferred up to 10 mos. after covered period end date

• 5 years
• 1%
• Deferred up to 10 mos. after covered period end date

Eligibility

• < 500 employees

• < 300 employees
• Utilized all First Draw funding
• 25% reduction in gross revenue (2020 vs 2019)
• First PPP loan cannot be under SBA Review

Documents Required

• 2019 or 2020 payroll documentation (salary, retirement, health care, state taxes)

• Gross receipts from one quarter in 2019 (or 2019 year-end) + gross receipts from the same quarter in 2020 (or 2020 year-end)

• New Seattle Bank clients - 2019 or 2020 payroll documentation

 

PPP Loan Forgiveness Update

What You Need to Know

We are currently accepting all 3 versions of the SBA’s forgiveness applications (3508, 3508EZ & 3508S) for both 8-week and 24-week covered periods.

Please review the PPP Loan Forgiveness Documentation Requirements to ensure that you are compiling all of the required documentation that you will be asked to provide when you apply for loan forgiveness.

Recent Updates

  • The newest application released by the SBA (3508S) is a simplified version of the 3508EZ, however, the documentation requirements remain the same.
    • This is not the automatic forgiveness option that the industry had been hoping for because you will still need to submit documents to support how you spent your PPP loan proceeds.
    • However, borrowers using the 3508S are not required to submit their forgiveness calculations.
    • And, forgiveness amounts for borrowers using this form are not subject to FTE or wage reductions.
  • Undercurrent guidelines, forgiven PPP expenses are not tax-deductible. Industry sources tell us that this topic is currently under discussion.
  • All borrowers have up to 10 months after the expiration of their covered period to submit their forgiveness application.
  • The PPP Flexibility Act automatically extended the deferral period for all borrowers to the date the SBA remits forgiveness funds to Seattle Bank.
  • If there is a balance left over after the SBA has made a decision on your forgiveness application, Seattle Bank will reach out to you to determine if you’d like to pay off the balance in full or set up monthly payments.

PPP Loan Forgiveness Application

PPP Loan Forgiveness FAQ

 

Contact Us:

Phone: (206) 281-1500
Email: [email protected]

You can sign up for Seattle Bank Small Business Relief email updates here.

Meet Our Commercial Banking Team

Bryan Petersen

Bryan Petersen

Vice President, Commercial Banking Outreach

Phone: (206) 436-3401

[email protected]