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PNC has funded over 74,000 Paycheck Protection Program loans, totaling more than $13.6 billion, for our small business customers. These uncertain times do not alter our steadfast commitment to our customers. We continue to work with those experiencing financial hardship through a range of measures, including removing late fees, loan payment relief, providing consumer hardship loans and doing what we can to support our customers and communities.
We are currently not accepting new Paycheck Protection Program (PPP) applications.
On Thursday, Oct. 8, 2020, the Small Business Administration released PPP Loan Forgiveness Application Form 3508S and instructions, which is available for borrowers meeting criteria listed on the top of the application. We are working to incorporate these changes into our PPP forgiveness application portal. In general, if you received a PPP loan of $50,000 or less and have not, together with your affiliates, received PPP loans totaling $2 million or greater, you may use the new streamlined form once PNC has completed updates to our PPP forgiveness application portal.
We understand your desire to begin the forgiveness process. We’ll send you an invitation to apply once we’re ready to accept your application. Please note that even if you haven’t applied for forgiveness, no payments are due until the end of your deferral period, which is 10 months after the end of the 24 weeks covered period (or 10 months after the end of 2020, whichever occurs first). Once you apply for forgiveness, payments on any unforgiven portion of your loan will be due in the first month after the SBA remits a forgiveness payment to PNC.
Click Documentation Requirements for an outline of the documents required to support different categories of costs you can claim on your PPP loan forgiveness application.
The Paycheck Protection Program Flexibility Act of 2020 (‘PPP Flexibility Act’), which was signed into law on June 5, 2020, modifies the loan forgiveness process and provides significant benefits to PPP loan borrowers.
On June 17, 2020, the SBA published updated forgiveness forms aligned with the PPP Flexibility Act. To ensure consistency and clarity for our clients. We will only be accepting applications based on the newest form published by the SBA. You can reference the revised SBA Loan Forgiveness Application and Instructions and the new SBA Loan Forgiveness Form EZ and Instructions on the Treasury site.
The SBA launched its PPP Forgiveness Platform on Monday, Aug. 10. This platform allows PNC and other lenders to submit completed PPP loan forgiveness applications to the SBA for its review. At this time, PNC is continuing to develop our digital PPP Forgiveness Application, which will allow customers to complete the forgiveness application that will be submitted to the SBA. We are working diligently to incorporate recent changes from the SBA into the application, enhance the application based on feedback from our customer pilot program and provide an optimal experience for our customers.
If you used PPP loan proceeds for qualified expenses, PPP loans are eligible for forgiveness up to 100% of the loan amount.
PPP borrowers are responsible for understanding the SBA’s rules. We are providing this information based on the text of current laws and regulations, and guidance from the SBA (and other regulatory authorities). The information that we have provided is subject to modification based on any future rules or guidance issued by the SBA or other relevant regulatory authorities, as well as any new U.S. federal government laws, regulations, or programs.
The following expenses are eligible for forgiveness:
What is the Covered Period?
The default Covered Period runs for 24 weeks (or until December 31, 2020 if it occurs before the end of this 24-week period), starting on the date the loan was funded.
Borrowers who received their loans prior to June 5, 2020 may alternatively elect an 8-week Covered Period (starting on the date the loan was funded). If eligible, you may elect to apply for forgiveness before the end of the 24-week period, however, all costs you claim must be paid or incurred during the timeframe you elect.
Is there anything I have to do in order to extend my Covered Period to 24 weeks?
No, your Covered Period will automatically extend to 24 weeks unless you indicate otherwise in your Forgiveness Application
The Alternative Payroll Covered Period:
The Alternative Covered Period can be used for administrative convenience for Borrowers with a biweekly (or more frequent) payroll schedule. Borrowers may elect to calculate payroll costs using a date that began on the first day of the payroll period following their PPP loan funding date.
New Assistance for Employees and Tax Benefits for your Business
FAQs provided by the US Treasury
Table of Small Business Size Standards
SBA EIDL Website
FAQS for Loan Forgiveness Provided by the SBA
Summary of PPP lending as of 7/31/20
Interim Final Rule - Appeals of SBA Loan Review Decisions Under the PPP
SBA Loan Forgiveness Application (Standard)
SBA Loan Forgiveness Application Instructions (Standard)
SBA Loan Forgiveness Form EZ
SBA Loan Forgiveness Form EZ Instructions
Interim Final Rule on Loan Forgiveness
Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities
Interim Final Rule on Revisions to the Third and Sixth Interim Final Rules
Interim Final Rule on Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule
Up to 100% of the principal amount and any accrued interest of the loan may be forgiven if you use the proceeds on qualifying expenses. However, there are certain actions that may reduce the amount of forgiveness, such as reducing the number of employees or reducing employee salaries or wages. Only up to 40% of the forgiven loan amount can be for non-payroll costs.
Outstanding loan amounts bear an interest rate of 1.00%. Any loan approved on or after June 5, 2020 will have a maturity of five years, and any loan approved before June 5, 2020 will have a maturity of two years, unless the borrower and PNC agree to extend the period to five years. At the end of the deferral period, any accrued interest that has not been forgiven will be due.
If you apply for forgiveness, your payments will be deferred until PNC receives your approved loan forgiveness funds from the SBA. If you don’t apply for forgiveness, your payments could be deferred for up to 16 months – the deferral period has been extended for 10 months following whichever date occurs first – the date that is 24 weeks after your loan was funded, or December 31, 2020. Monthly payments of principal plus interest will begin after the deferral period.
PNC will alert borrowers with an email notification once the PNC digital application portal is available to accept applications. You will be notified once the PNC Online Portal becomes available. Borrowers will be provided login credentials and instructions on how to initiate the loan forgiveness process through PNC’s digital portal.
We are currently incorporating the revised and new forms into our digital loan forgiveness application and will prompt borrowers to complete the application through the portal. To ensure consistency and clarity for our clients, we will not be accepting applications based on the initial SBA application and we will not be accepting paper applications. The only applications we will accept are through the PNC Online Forgiveness Portal.
PNC will notify you once we are able to accept online applications through our Portal.
The SBA’s “EZ” form will allow certain borrowers to use a streamlined forgiveness application, including reduced documentation requirements. Borrowers can apply for forgiveness using this form if one of the following is applicable:
No. PNC will let borrowers know when our digital portal is ready to accept forgiveness applications. We are not accepting paper applications at this time.
You will not have to obtain these numbers. PNC will automatically pre-populate borrowers’ Forgiveness Applications with their SBA PPP Loan Number and Lender PPP Loan Number in the digital portal.
In general, payroll documentation, full-time equivalent (FTE) headcount documentation, and non-payroll documentation will be required.
Guidance from the SBA states that lenders have 60 days after receiving a complete forgiveness application to review a PPP Forgiveness application and submit the lender’s decision to the SBA. Once the SBA receives the lender’s decision, they have 90 days to review the application before remitting a forgiveness payment to the lender.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was recently passed to provide emergency relief for small- to medium-sized businesses disrupted by COVID-19. The Act created the Paycheck Protection Program, which will serve as an extension of the Small Business Administration (SBA) 7(a) loan program, allowing financial institutions to provide federally-backed, forgivable loans to eligible businesses.
Although we may receive additional guidance from the SBA, our current understanding of the program is below.
This information is based on currently available information and is subject to change. We are committed to keeping you informed as we receive additional guidance.
Be sure to check this site regularly as we will provide updates as they become available.
For seasonal firms, 2.5x the average monthly payroll for 12-week period starting either February 15th, 2019 or March 1st, 2019 (at the election of the borrower). For businesses without a full year of payroll history, 2.5x the average monthly payroll from January 1st, 2020 to February 29th, 2020.
The Paycheck Protection Program (PPP) is authorized under the CARES Act and makes available up to $349 billion of Federal funding for loans to support, among other things, the payment by small businesses, sole proprietorships and non-profits of payroll expenses and certain other expenses as described in the Act, the implementing rules and the PPP application materials. Applicants can separately apply to have all or a portion of the loan amount forgiven.
The Small Business Administration (SBA) has indicated that loans under the PPP will be made available on a “first come first served” basis. So once the SBA has expended the full $349 billion of authorized funding, additional loans will no longer be available (unless additional funding is authorized by the Government). In addition, the PPP is scheduled to close on June 30, 2020.
It is very important that you complete the application accurately and provide all requested information. Once you submit the application and supporting documents, it may not be possible to revise or supplement them. PNC will notify you if the application is incomplete or PNC cannot otherwise complete its processing of the application. Once the application is complete and is determined to meet PNC and PPP requirements, PNC will electronically submit the application to the SBA. Given the strong expected demand for loans under the PPP, there may be delays in processing your application.
If your application is approved by the SBA, PNC will contact you and provide you with a promissory note for execution. That promissory note must be signed and returned to PNC for you to receive the proceeds of the loan.
PNC will review and approve PPP loan applications in accordance with applicable legal and regulatory requirements.
For customer verification purposes due to applicable rules, companies with revenues less than $5 million must have a PNC Business Deposit or Checking Relationship and be registered for online banking in order to submit a PPP application through PNC’s online application portal. For information on how to establish a PNC deposit account and register for online banking, please visit pnc.com/smallbusiness.
PNC will not pay Agents for assistance they may provide an applicant in obtaining a PPP loan.
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