What to know about the Paycheck Protection Program

While the Paycheck Protection Program (PPP) has been reopened for new loans through March 2021, TIAA Bank is no longer offering loans under the program. You can find a directory of banks that are authorized by the Small Business Administration to provide PPP loans at the SBA website.

If you’ve already secured a PPP loan through TIAA Bank, we’re here to help keep 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 has up to 24 weeks (the “Covered Period”) 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 costs, rent, mortgage interest, utilities, operations expenditures, property damage costs, supplier costs, and worker protection expenditures for the 24-week period after the loan is received
  • Payroll costs must account for 60% or more of your approved loan amount
Important reminder: Keep documentation as required by instructions in each respective Loan Forgiveness Application.

Applying for loan forgiveness

When you’re 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

Please review the following applications and appended instructions to determine which SBA Loan Forgiveness Application Form is appropriate for your situation. We recommend that, prior to applying for PPP loan forgiveness, you carefully review and fill out the applicable forms and gather the required documentation specified in the instructions:

PPP Loan Forgiveness Application (for loans $150,000 and less) 

PPP EZ Loan Forgiveness Application  

PPP Loan Forgiveness Application 

Please note: If you have both a PPP loan and an EIDL and plan to apply for PPP loan forgiveness, any advances you’ve received through the EIDL program will no longer be subtracted from from your final PPP loan forgiveness amount. If you have applied for PPP loan forgiveness and your forgiveness amount has been reduced by an EIDL advance, your lender can advise you on reconciliation payments or adjustments to your PPP loan.

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.

  • For First Draw loans issued on or after June 5, 2020, you’ll have 5 years to repay the loan in the event your business does not qualify for loan forgiveness.
  • If your First Draw loan was issued prior to June 5, 2020, the repayment period will be 2 years, but may be extended by agreement with your lender.

Support from the SBA

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