PPP Forgiveness

Bank of Jackson Hole is now accepting applications to process Paycheck Protection Program (PPP) loan forgiveness. The bank will only accept applications and supporting documentation, as applicable, through the forgiveness portal. Your PPP loan is eligible for forgiveness 8 weeks after the loan funding date. Since the SBA has expanded the covered period, the time frame in which loan proceeds can be used, borrowers may elect to apply for forgiveness after 24 weeks.

To access the Forgiveness Portal, you will need the email address of the primary contact, SBA loan number and the EIN/SSN of the borrower. Incomplete sessions can be saved and restarted with a link sent to the email of the primary contact.

Start Forgiveness Application

Forgiveness Portal

Your SBA loan number and Bank of Jackson Hole loan number are the same. The loan number can be found on the top line of the Note. The loan number carries the following format: 99988877-66.

Generally, the primary contact’s email was listed on the PPP Application. In cases where the primary contact was not authorized to sign the note, the bank used the email of an authorized signer on the Note. If you are still unsure, contact us at sbappp@bojh.com.

 

Access can be granted to another individual by emailing the name and email address to sbappp@bojh.com. Please submit this request before accessing the application. If you have already started your PPP Forgiveness application and received the PPP Forgiveness application link, you can forward your link to a third-party to complete.  You will continue to receive all additional correspondence in regards to the PPP Forgiveness process.

Yes. Bank of Jackson Hole is using a third-party to facilitate the PPP Forgiveness Application process. If you have concerns about any communication you have received, please email sbappp@bojh.com.

The 3508EZ can be used if one of the three options applies to the borrower:

Option 1:

The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).

Option 2:

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period. (Ignore reductions that arose from an inability to rehire individuals who were employees on February 15, 2020 if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020.  Also ignore reductions in an employee’s hours that the Borrower offered to restore and the employee refused.

Option 3:

The Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period (as defined below) compared to the period between January 1, 2020 and March 31, 2020 (for purposes of this statement, “employees” means only those employees that did not receive, during any single period during 2019, wages or salary at an annualized rate of pay in an amount more than $100,000);

AND

The Borrower was unable to operate during the Covered Period at the same level of business activity as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to the maintenance of standards of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

You can upload a spreadsheet that captures the information as required by the PPP Schedule A Worksheet. Totals from the spreadsheet can be manually keyed in the appropriate fields within the portal.

For an application to be considered complete, it must include supporting documentation validating eligible payroll and non-payroll expenses.

For more detailed expense and documentation information, please review the section called: Eligible Expenses & Documentation Requirements.

Required supporting documents must be uploaded to the bank’s PPP Forgiveness Portal.

Completed applications can only be edited by the bank. Please email us at sbappp@bojh.com to request a change.

The SBA gives banks 60 days to review a complete application; however, the bank will strive to review complete applications within 10 business days of the submission date.

Borrowers should expect to spend 3-5 hours compiling information required to complete the forgiveness application.

The SBA has not issued guidance informing banks of the method to submit forgiveness requests. However, once applications can be submitted, the SBA has given itself up to 90 days to review forgiveness applications. The bank can only apply the approved forgiveness amount once the SBA has approved the application.

Important Dates

Loans are eligible for forgiveness after the end of the covered period. For loans approved prior to June 5, 2020, borrowers may elect to use an 8 or 24 week covered period. Loans approved after June 5, 2020 are eligible for forgiveness after a 24 week covered period.

Yes. The loan forgiveness application should be submitted within 10 months after the end of the covered period.

The SBA gives banks 60 days to review a complete application; however, the bank will strive to review complete applications within 10 business days of the submission date.

The SBA has not issued guidance informing banks of the method to submit forgiveness requests. Once applications can be submitted, the SBA has given itself up to 90 days to review forgiveness applications. The bank can only apply the approved forgiveness amount once the SBA has approved the application.

Eligible Expenses & Documentation Requirements

The PPP Flexibility Act changed the payroll/nonpayroll split to 60:40. This means that 60 percent of loan proceeds should be used for payroll costs during the covered period and 40 percent of loan proceeds can be used for nonpayroll costs.

If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.

Payroll costs eligible for forgiveness consist of:

  • Cash Compensation: The sum of gross salary, gross wages, gross tips, gross commissions, paid leave (vacation, family, medical or sick leave, not including leave covered by the Families First Coronavirus Response Act), and allowances for dismissal or separation paid or incurred during the Covered Period or the Alternative Payroll Covered Period. You can only include compensation of employees who were employed by the Borrower at any point during the Covered Period or Alternative Payroll Covered Period and whose principal place of residence is in the United States.
  • The total amount paid by the Borrower for: (1) Employer contributions for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after-tax contributions by employees. Do not add employer health insurance contributions made on behalf of a self-employed individual, general partners, or owner-employees of an S-corporation, because such payments are already included in their compensation. (2) Employer contributions to employee retirement plans, excluding any pre-tax or after-tax contributions by employees. Do not add employer retirement contributions made on behalf of a self-employed individual or general partners, because such payments are already included in their compensation, and contributions on behalf of owner employees are capped at 2.5 months’ worth of the 2019 contribution amount. (3) Employer state and local taxes paid by the borrower and assessed on employee compensation (e.g., state unemployment insurance tax), excluding any taxes withheld from employee earnings.

The following documents can be used to support payroll related expenses:

  • Documentation verifying eligible cash compensation and non-cash benefit payments
  • Payment receipts, canceled checks, or account statements documenting amount of employer contributions to employee health insurance and retirement plans
  • Tax Forms (or equivalent 3rd party payroll service provider reports)
  • Payroll tax filings reported, or that will be reported to IRS (generally Form 941)
  • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state

Nonpayroll costs eligible for forgiveness consist of:

  • Mortgage obligations: payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”);
  • Rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and
  • Utility payments: business payments for a service for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020 (“business utility payments”).

An eligible nonpayroll cost must be paid during the Covered Period or incurred during the Covered Period and paid on or before the next regular billing date, even if the billing date is after the Covered Period. Count nonpayroll costs that were both paid and incurred only once.

The following documents can be used to support non payroll related expenses:

  • For business mortgage interest payments- copy of lender amortization schedule and receipts or canceled checks verifying eligible payments or lender account statements from 2/2020 and the months of the covered period through 1 month after the end of the covered period verifying interest amounts and eligible payments
  • For business rent or lease payments- copy of current lease agreement and receipts or canceled checks verifying eligible payments for covered period, or lessor account statements from 2/2020 and for the covered period through 1 month after the end of the covered period verifying eligible payments
  • For business utility payments (electricity, gas, water, telephone, internet access) payments- copy of invoices from 2/2020 and those paid during the covered period and receipts, canceled checks or account statements verifying eligible payments

Borrowers must retain the PPP documentation in their files for at least six years after the date that the loan is forgiven or repaid in full.

Documents to retain include all records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements.

Loan Information

The interest rate on PPP loans is 1%. Interest has been accruing since the loan origination date.

If you have not applied for forgiveness within 10 months after the last day of the covered period, the PPP loan is no longer deferred and the borrower must begin paying principal and interest.

The covered period has been extended by the SBA from eight to 24 weeks. The covered period begins on the loan origination date.

If only a portion of the loan is forgiven, or if the forgiveness request is denied, any remaining balance due on the loan must be repaid by the borrower on or before the maturity date of the loan. Borrowers and the bank may mutually agree to extend the term of the loan to five years.

PPP loans approved on or after June 5, 2020 automatically have a five year term.

*These Frequently Asked Questions (FAQs) are for informational purposes only and are subject to change as further administrative guidance is released.  Bank of Jackson Hole makes no representation or warranty as to whether any borrower will be eligible for forgiveness.  Borrowers should contact their tax or legal advisors with specific questions about their eligibility for forgiveness.

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