Paycheck Protection Program

What to know about your PPP loan

The CARES Act, in creating the Paycheck Protection Program (PPP), allocated billions in relief efforts aimed at helping small businesses like yours weather the ongoing economic impacts of COVID-19. At TIAA Bank, we’re committed to supporting you through the crisis and keeping you informed of important PPP loan spending and forgiveness requirements.

Key spending dates and guidelines

The PPP Flexibility Act amended the PPP to give businesses more time to spend loan proceeds.

Your business now has up to 24 weeks (the “Covered Period”), or by December 31, 2020, should that occur first, to spend loan proceeds
Of your loan proceeds, 40% may be used for non-payroll expenses, while the remaining 60% must go to payroll costs
Any loan payments may be deferred for up to 10 months after the last day of your “Covered Period”

Loan forgiveness

All loan proceeds must be used exclusively for business-related purposes, including payroll maintenance, mortgage interest or lease payments, covered rent payments and covered utilities for the 24-week period after the loan is received
Again, payroll costs must account for 60% or more of your approved loan amount

Important reminder: Keep documentation of the number of full-time equivalent employees on your payroll, payroll costs, and all mortgage, rent and utility payments. Your records should include payroll dollars paid and the employment status of all full-time equivalent employees, as well as any individuals who had limited employment during the 24-week period after you received your funds.

Applying for loan forgiveness

We are now accepting applications for loan forgiveness, which may be submitted prior to the end of your covered period. When ready to apply, you'll need to submit a completed Small Business Administration forgiveness application directly to TIAA Bank at ppploans@tiaabank.com. All applications will be fully reviewed for accuracy and forwarded to the SBA within 60 days of their receipt, assuming no processing delays or holds are issued by the SBA.

SBA forgiveness applications and instructions

PPP Loan Forgiveness Application (for loans $50,000 and less)
Use this simplified loan forgiveness application for PPP loan amounts up to $50,000. However, borrowers that, together with its affiliates, received PPP loans totaling $2 million or greater cannot use this form.
Loans up to $50,000 application instructions

PPP EZ Loan Forgiveness Application
This application is only available if you are self-employed, an independent contractor, or sole proprietor with no employees, or any other business entity that did not reduce the annual salary or hourly wages of any employees by more than 25%. Please review the application instructions fully to ensure you meet the criteria for using this application.
EZ Loan application instructions

PPP Loan Forgiveness Application
This application must be used by all businesses not eligible to use either of the above applications.
General application instructions

When loan repayment is required

If your business lays off workers and doesn’t rehire them, reduces wages by more than 40% during the time it uses the loan, or uses the loan for expenses not defined in the bill, a portion of the loan will not be forgiven and will be expected to be repaid at a 1% interest rate over the repayment period.

Support from the SBA

Visit the SBA website for timely information and resources on PPP loan eligibility and forgiveness.

PPP loan forgiveness applications and instructions

Answers to your questions

Employee payroll costs as defined by the PPP include salary, wages, commissions and tips—up to $100,000 per employee. Also included are costs for vacation, parental, family, medical or sick leave, allowance for separation or dismissal; payments provided for provisions of group health care benefits, and payment of any retirement benefit. State and local taxes on compensation are included as well.

If you’re a sole proprietor or independent contractor, payroll costs include wages, commissions, income, or net earnings from self-employment—up to $100,000 on annualized basis for each employee.

Seasonal businesses are eligible for their average monthly payroll between February 15 and June 30, 2020—up to $100,000 per employee. New businesses are eligible for their average monthly payroll from January 1 to February 29, 2020.

Your loan will need to be repaid within two years, at a fixed interest rate of 1.00%. All payments will be deferred for 6 months, but interest will continue to accrue over that time period.

Another relief option: The Economic Injury Disaster Loan Program

In addition to the Paycheck Protection Program, the CARES Act provides relief to small businesses and nonprofits in the form of emergency loans and grants.

Learn more about the program

Information to keep in mind

All loans are subject to other requirements and availability of funds under the SBA program. Funds are limited and loan forgiveness is subject to SBA guidance and approval only. Program terms and conditions are subject to change by the Small Business Association (SBA) without notice. Published as of 6/10/2020.