Thank you for your interest in obtaining a PPP loan from First Financial. Due to high levels of response, we are no longer accepting new PPP Loan Applications. Please contact your loan officer for assistance.
Important Notification to SBA PPP Loan Borrowers
Lenders are expressly authorized (without review or confirmation) to rely on the certification by a PPP loan borrower that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations” of its business. As such, we feel compelled to advise you that your lender’s acceptance of your PPP loan application and funding of your PPP loan does not constitute, and cannot be relied upon as implying, a conclusion or affirmation by your lender that such PPP loan proceeds are necessary for ongoing operations of your business or that you have otherwise met applicable eligibility requirements for PPP loan participation.
SBA Resources from First Financial Bank
Loan Forgiveness and Guidance - Updated 5/18/2020
While the SBA guidelines for loan forgiveness are still subject to change, below is a brief overview:
- Full loan forgiveness is based on the employer maintaining both full time equivalent employees and employee wages in the 8-week or 24-week covered period beginning at the discretion of the borrower.
- If the employer has laid off or furloughed employees or reduced employee salaries after February 15th, 2020, the employer has until December 31, 2020 to rehire employees and restore salary levels.
- Forgiveness amounts will be reduced if the employer's full time equivalent employee count declines or salary levels decrease, as shown in the available PPP Expense Tracker (Requires Microsoft Excel).
- Loan recipients must prove that the loan was used only on approved costs.
- At least 60% of the total loan amount must be spent on payroll.
- The portion of the loan not spent on payroll costs must be used only for approved expenses (mortgage interest, other interest payments, rent or lease payments, utilities), for which you must provide documentation.
- If you received an SBA EIDL loan, the amount forgiven will be reduced by the amount granted, up to $10,000.
A link to the SBA's Loan Forgiveness Application can be found by clicking here. Please note, while we are here to support you through this process, First Financial Loan Officers are limited in the information they can provide about specific details surrounding your loan forgiveness. Please consult with your CPA and/or payroll company on loan forgiveness details.
Understanding the Program
Loan Amounts Are the Lesser Of:
- 2.5 times the monthly average payroll costs1
- 1.00% interest rate
- Up to a 2 year term
- No collateral or personal guaranty required
- Must sign a Good Faith Certificate
- Payment deferrals of six months
- Loan may be forgiven by the SBA2
Excluded Payroll Cost:
- Compensation of an individual employee in excess of an annual salary of $100,000, as prorated for the period of February 15, to June 30, 2020
- Payroll taxes, railroad retirement taxes, and income taxes
- Any compensation to an employee whose principal place of residence is outside of the United States
- Qualified sick leave or family leave wages for which a credit is allowed under the section 7001 and 7003 of the Families First Coronavirus Response Act
Other SBA Resources
In addition, the Small Business Administration has released guidelines for the state of Texas offering low-interest, federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the coronavirus.
These disaster relief loans, applied for directly from the SBA, may be used to pay fixed debts, payroll accounts, accounts payable, and other bills that can not be paid due to the disaster's impact.
If you have questions about the EIDL assistance, you may call the SBA's Disaster Customer Service Center at 800-659-2955 or email them email@example.com..
We are here to be as helpful as we can during these times. Please check back regularly for updates regarding the First Financial Bank SBA Program.
This information is accurate and updated as of June 8, 2020. Terms and conditions are subject to change.
1 Payroll costs are defined as: (1) the sum of payments of any compensation with respect to employees that is a—(A) salary, wage, commission, or similar compensation; (B) payment of cash tip or equivalent; (C) payment for vacation, parental, family, medical, or sick leave; (D) allowance for dismissal or separation; (E) payment required for the provisions of group health care benefits, including insurance premiums; (F) payment of any retirement benefit; or (G) payment of State or local tax assessed on the compensation of employees; and (2) the sum of payments of any compensation to or income of a sole proprietor or independent contractor that is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in an amount that is not more than $100,000 in 1 year.
2 Loan forgiveness is subject to the requirements and qualifications of section 1106 of the Cares Act. Borrower will be required to monitor and support the necessary documentation for loan forgiveness.
By participating in loan forgiveness under a SBA Paycheck Protection Program loan, the borrower could be forfeiting alternative tax benefits that were generally made available under the CARES Act, such as the employer’s retention tax credit and the employer’s ability to defer payment of the employer’s portion of social security taxes. In other words, a borrower that obtains forgiveness in the SBA Paycheck Protection loan program may become ineligible for the employer retention tax credit and the ability to defer the employer’s share of social security taxes.
Accordingly, the borrower may wish to discuss these matters with its tax advisor before obtaining a SBA Paycheck Protection Program loan. First Financial Bank does not provide tax advice to its customers.