Frequently Asked Questions
(Updated as of April 13, 2020)
What is the PPP?
The PPP is a Small Business Administration program that is administered by Banks on behalf of the SBA. Because it is an SBA program, the Banks must comply with the rules and requirements as set forth by the SBA.
The following information is as of 4/13/20 based on the guidance issued from the SBA. Terms and conditions described herein are subject to change based on updates from the SBA.
When can I expect to receive funds?
As of April 13th, CRBT continues to await final guidance from the SBA on the documentation and funding of the loans. We anticipate receiving this guidance in the next few days. While we await the SBA guidance, we will begin processing your file for close.
- After we have all required application/supporting documents, you will need to sign loan documents.
- Upon execution of the loan documents, we will fund your loan.
- We expect it to take another 10-14 days to complete documentation and funding.
What documentation will I need to provide to close the loan?
Your Closing Representative will contact you with details on what you need to provide to prepare for closing. We will have a checklist for you to complete, which you will complete and submit to us with all required supporting documentation required by the SBA.
Will my loan be forgiven?
The PPP is a loan that may be forgiven in full or part if the Borrower meets certain criteria.
The terms of forgiveness are:
- Not more than 25% of the forgiven amount may be for non-payroll costs.
- The loan proceeds must be used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained. Payroll costs are capped at $100,000 on an annualized basis for each employee.
How much of my loan will be forgiven?
- You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Not more than 25% of the forgiven amount may be for non-payroll costs.
- You will also owe money if you do not maintain your staff and payroll.
- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
- Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
- Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
What are the terms of my loan?
- 1.00% fixed rate
- 2 year term
- Interest payable monthly beginning in month 7.
- No collateral required
Can I pay my loan earlier than 2 years?
Yes. There are no prepayment penalties or fees.
Do I need to personally guarantee this loan?
No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***
Who is my CRBT contact for the PPP?
Your CRBT Closing Representative is your main contact.