COVID-19 Updates, CARES Act, Resources & Community Support
During this challenging and uncertain time, our priority is providing our customers with the best service and support. Since there are times that you can't come to our lobbies for guidance, we will bring the bank to you with the assurance that we're here for you, wherever you are.
We've put together this portal with useful information about the CARES Act, PPP Loans, resources for you and your business, as well as community support information and helpful tips from 417 Magazine about supporting local businesses, staying connected and working from home.
We are here for you, wherever you are.
Paycheck Protection Program Loan Forgiveness
We understand that the PPP loan forgiveness process is important to your business. If you received PPP funding through OMB, you will need to submit your forgiveness application through us as well.
You will be receiving communication from our PPP Team in the coming weeks, providing you with a forgiveness application and guidance on the forgiveness process.
SBA Forgiveness Applications: To date, SBA has provided 3 applications for SBA Forgiveness:
- SBA Form 3508 – Borrower must use this form if they are not eligible to use Form 3508EZ or Form 3508S
- SBA Form 3508EZ – Simplified version for loans greater than $50M. To qualify, the borrower must be able to check at least one of the three boxes on page 1 of the Form 3508EZ Instructions. If the borrower is not able to answer one of the three boxes on page 1 of the instructions, they must use Form 3508.
- SBA Form 3508S – Streamline application for loans $50M and under.
- A borrower that, together with its affiliates, received PPP loans totaling $2 million or greater cannot use this form.
- SBA Form 3508S is exempt from any reductions in the borrower’s loan forgiveness amount based on reductions in full-time equivalent (FTE) employees or reductions in employee salary or wages, that would otherwise apply.
How to Prepare:
Please review the information below and contact your OMB Community Banker if you have additional questions:
- Understand the eligible cost (payroll, mortgage interest, rent payments and utilities)
- If Payroll Costs alone are sufficient to receive FULL forgiveness of the loan amount, you do not need to include Non-Payroll Costs in the calculation nor do you have to provide Non-Payroll documentation.
- Gather and keep records on eligible expenses – below is documentation that you will be required to submit to the bank with your forgiveness application.
Payroll: Documentation verifying the eligible cash compensation and non-cash benefit payments from the Covered Period or the Alternative Payroll Covered Period consisting of each of the following:
- Bank account statements or third-party payroll service provider reports documenting the amount of cash compensation paid to employees.
- Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
- Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
- State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state.
- Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the Borrower included in the forgiveness amount.
Nonpayroll: Documentation verifying existence of the obligations/services prior to February 15, 2020 and eligible payments from the Covered Period.
- Business mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the Covered Period; or lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments.
- Business rent or lease payments: Copy of current lease agreement and receipts or cancelled checks verifying eligible payments from the Covered Period; or lessor account statements from February 2020 and from the Covered Period through Period verifying eligible payments.
- Business utility payments: Copy of invoices from February 2020 and those
Covered Period vs. Alternative Payroll Covered Period
- Covered Period – 8-week or 24-week period starting on the date of the loan disbursement.
- Loans approved prior to June 5th, borrower may elect to use 8-week or 24-week
- Loans approved on or after June 5th must use 24-week
- Alternative Payroll covered Period
- Applies to payroll cost only.
- Borrower may elect to use Alternative if they have biweekly or more frequent payroll.
- Alternative Payroll Covered Period: 8-week or 24-week period that begins on the first day of the first payroll cycle following the loan disbursement date.
Compensation per employee is limited to $100,000 on an annualized basis.
- 8-week a maximum of $15,385
- 24-week a maximum of $46,154
Owner Compensation (across all businesses): Those with a 5% or more ownership will be subject to the owner-employee compensation maximum.
- 8-week Covered Period – Capped at $15,385 or 8 weeks’ worth (8/52) of 2019 compensation (approximately 15.38% of 2019 compensation), whichever is less.
- 24-week Covered Period –Capped at 2.5 months' worth (2.5/12) of 2019 compensation (approximately 20.83% of 19 compensation, whichever is less.
Please note the following changes in accordance with the Paycheck Protection Forgiveness Flexibility Act (PPPFA)
- Drops the 75/25 payroll rule to 60/40
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender
- Extends the loan forgiveness period from eight weeks to 24 weeks (for loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks)
Please contact your OMB community banker if you have any questions. We will continue updating our website as more information becomes available.
OMB's Small Business Toolkit
Every day, we are committed to serving our small business customers. Now, when things are so uncertain, we want to support small businesses in every way we can. We have collected resources to help you navigate the changes, in easy-to-read downloadable guides - Learn More.