PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS

There’s nothing more important to us than supporting our customers and communities. We’re proud to be eligible lenders as part of the Paycheck Protection Program (PPP). 

Below, you’ll find more information on PPP Loan Forgiveness. Do not hesitate to reach out to us for further assistance; local branch phone numbers are here.

REQUIRED DOCUMENTS FROM THE BORROWER: 
  • Fill out the Paycheck Protection Program Loan Forgiveness Request available on bankcom.com/ppp

  • Upload by clicking here OR email to PPPforgiveness@bankcom.com OR bring a hard copy to your banker

  • Provide required documentation listed below

BORROWER INFORMATION REQUIRED:

  • Borrower/Business Name

  • SBA Loan #

  • PPP Loan Amount

  • Loan Disbursement Date

    • If you also received an EIDL advance, please include amount and Loan # if applicable ​

USE OF PROCEEDS:

To qualify for forgiveness, at least 60% of your loan funds must have been spent on eligible payroll costs (eligible employee salaries, which exclude compensation of $100,000+ in wages, paid sick leave or medical leave, insurance premiums). Up to 40% of the loan can be used on non payroll costs; interest paid on a mortgage (excluding any prepayment of or payment on principal), rent or lease payments, and utility payments.

DOCUMENTATION:

To determine the total forgiveness a borrower is eligible for, the following documentation must be presented to the Lender with the Loan Forgiveness Request Form​.

 

Payroll Costs

Documentation verifying eligible cash compensation and non-cash benefit payments for the Covered Period (or Alternative Payroll Covered Period) includes:

 

Cash Compensation

  • Complete 3rd-party payroll service provider reports – Documents each employee

  • Complete Internal Payroll Summary (Excel, Quickbooks, Journal) – Documents each employee

  • Complete Bank Statements (if paid by direct deposit)

  • Processed checks (front and back) if not submitted with bank statement

  • Payroll tax filings reports to IRS (generally Form 941) – Quarter ending 6/30/20, 9/30/20, 12/31/20

  • For State Taxes: State tax filing reports (examples: Unemployment Tax, Employment Training Tax

  • **Reminder: Employer federal taxes like social security, Medicare, and federal unemployment are not eligible expenses

​Non-cash compensation​​​

  • Non-cash compensation (Health and Retirement Contributions)

  • Complete account statements or invoices

  • Complete Bank statements (if paid electronically)

  • Processed checks (front and back)

  • **Reminder:  If the Borrower is a self-employed individual, general partnership or S-corp, the account statements for Health and Retirement contributions will need to be broken down by each employee.

 

Non-payroll Costs 

Documentation verifying existing obligations and services that began prior to 2/15/20 are eligible payments under the following categories:

Business Mortgage Interest on Real or Personal Property

For Borrowers who have a business loan for real estate or machinery and equipment, the interest paid on those payments are eligible for forgiveness. The Borrower must provide the following documents:

  • Complete loan statements during the Covered Period – to detail amounts paid to interest and principal

  • Complete account statements prior to 2/15/20 – to show the obligation was in place

  • Complete bank statements (if paid electronically)

  • Processed checks (front and back)

  • **Reminder: Interest of business line of credits are not eligible for forgiveness.

 

Business Rent or Lease of Real or Personal Property

For Borrowers who lease or rent real estate, office space, storage space, machinery and equipment, or office equipment, total monthly rent payments are eligible for forgiveness. The Borrower must provide the following documents:

  • Complete lease agreement

  • Complete bank statements (if paid electronically)

  • Processed checks (front and back)

Business Utilities (electricity, gas, water, transportation, telephone, internet access)

For eligible business utilities in operation prior to 2/15/20, the borrower can use toward forgiveness.

The Borrower must provide the following documents:

  • Complete account statements during the Covered Period

  • Complete account statements prior to 2/15/20

  • Complete Bank statements (if paid electronically)

  • Processed checks (front and back)

 

Transportation:

 

Transportation utilities are defined as fees paid like a utility in which residents and businesses pay fees based on their use of the transportation system rather than taxes based on the value of property they occupy.

 

Examples include fees imposed by state or local offices for:

•Road Use Charges

•Vehicle Miles Traveled Fees

•Mileage Based User Fees

•Pavement Maintenance Fees

 

COVERED PERIOD:

  • Borrowers can begin applying for forgiveness after the Covered Period of their PPP loan. The Covered Period is eight (8) weeks or (24) from the disbursement date. All PPP funds must be used using the 60/40 scale prior to applying for forgiveness. 

Lost or Stolen Debit Card?

Call 800-500-1044. For telephone banking, call 662-453-4220. Email us at bank@bankcom.com.

(Due to the unsecure nature of email, Bank of Commerce advises against including non-public information.)

*Due to the unsecure nature of email, please do not include non-public information when contacting the bank. We recommend against sharing personal information through this form. By submitting this form, you accept our privacy policy.

© 2020 Bank of Commerce - Member FDIC, Equal Housing Lender

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