Important Information Regarding COVID-19 and PPP

Update as of January 21st, 2021:
SBA Paycheck Protection Program

We are pleased to be able to assist you in securing funds through the SBA’s Paycheck Protection Program (“PPP”). As you are likely aware, the PPP allows a portion, or all, of your loan and accrued interest to be forgiven if the proceeds were used for eligible payroll and non-payroll costs.

Prior to January 19, 2021, the SBA permitted PPP borrowers to use one of three loan forgiveness applications, including Form 3508 (the “Full Application”), Form 3508EZ (the “EZ Application”) and Form 3508S (the “Simple Application”).  The EZ Application simplified the forgiveness process for certain borrowers, while the Simple Application further streamlined the process for all PPP loans of $50,000 or less.

On January 19, 2021 the SBA released updated and revised forms for each of the Full, EZ and Simple applications.   The 3508S – Simple Application is now available to all borrowers who have loans of $150,000 or less, and does not require the borrower to submit supporting documentation beyond the application itself.

To begin the loan forgiveness process, we recommend you print and review a copy of the applicable January 19, 2021 revised application and instructions relevant to you.

Fillable forms for the Full, EZ and Simple Applications, as revised January 19, 2021, along with instructions can be found below:

Form 3508S Application and Instructions
Form 3508EZ Application and Instructions
Form 3508 Application and Instructions

If you need assistance with completing the Application, we recommend contacting your accountant, tax advisor or attorney. Your payroll provider may be able to assist with the required payroll and employee information.

Additional resource information may be found at the SBA’s PPP webpage.

In order to expedite the processing of your Application, please submit your Application by using the online process provided below.

 

Online Application Instructions 

Before starting the online process, we recommend that you have all of the information required in the Application, including supporting documents.

Submit your loan forgiveness application and supporting documentation.

This process allows you to:

  • Upload your already completed Application (in PDF format preferably)
  • Upload all supporting documents (in PDF format preferably)

All forms of Applications may be submitted through the above link.  Please note that if you have a loan for $150,000 or less you may use Form 3508S which does not require you to submit any supporting documentation as part of your Application.  Documents and records are still required to be maintained by all applicants. 

Upon submission you will receive an email confirmation that your Application has been received. The CARES Act allows the Bank 60 days to approve an Application once a complete Application has been submitted. The amount of loan forgiveness is not final until approved by both Independence Bank and the SBA.

 

Update as of January 11th, 2021:
SBA Paycheck Protection Program (form links updated on 3/10/21)

New legislation, signed into law on December 27, 2020, authorizes the Small Business Administration to approve Paycheck Protection Program (PPP) loans for up to $284.5 billion. We are now accepting both first draw and second draw PPP application forms as of today, January 11, 2021. Please complete the corresponding loan applications and submit documentation supporting payroll, rent or lease payments and utility payments to your lender.

First Draw Borrower Application Form
PPP First Draw Borrower Application Form – Schedule C Filers Using Gross Income
Second Draw Borrwer Application Form
PPP Second Draw Borrower Application Form – Schedule C Fliers Using Gross Income

If you have additional questions, please contact your loan officer.

 

Update as of November 20, 2020:

As developments continue surrounding Coronavirus (COVID-19), our top priority remains the health and wealthfare of our employees, customers and communities we serve. Beginning Saturday, November 21st all Independence Bank locations will be drive-thru only through Saturday, December 12th. If you need to reach us or schedule an appointment please give your nearest location a call.

 

Update as of October 13, 2020:
Application Tips for All Borrowers

We recommend the following tips for ALL borrowers submitting loan forgiveness applications:

  • Select a 24-week Covered Period – by doing so, this allows you to include more costs. Applications may be submitted at anytime prior to 24 weeks but you should still input 24 weeks as your Covered Period.  In addition, owners can receive the full 2.5 months of their 2019 income (up to $20,833) if the 24-week Covered Period is selected
  • Start with Payroll Costs – if your payroll costs exceed your loan amount you do not need to include other nonpayroll costs. In addition, if cash compensation exceeds your loan amount you do not need to include health insurance or retirement costs
  • Provide Owner Tax Returns – all owners who are included in payroll costs must provide 2019 tax documents (W-2, Schedule C, K-1, etc.)
  • Provide Complete Payroll Documentation – payroll must be supported by the following documents for the Covered Period:
    • Forms 941 for each quarter in 2020
    • Third-party payroll report OR Internal payroll report plus bank statements validating payment of payroll
  • Provide Complete Documentation for All Other Costs – generally all other costs need to be supported by:
    • Invoices, receipts AND validation of payment (bank statements, cancelled checks, etc.)
    • Mortgage, rent, lease and utility payments must also include documentation that the obligation was in existence prior to February 15, 2020 (bank statements, cancelled checks, lease agreements, etc.)

 

Update as of September 15, 2020:
PPP Deferment Update

Due to delays in finalizing all of the details with the forgiveness process, SBA has deferred the date that your first payment will be due on your Small Business Administration (SBA) Payroll Protection Program (PPP) loan.

If you apply for PPP loan forgiveness (and submit all required supporting documentation) within 10 months following the end of your Covered Period*, you will not be required to make any payments until after SBA has made a final forgiveness determination on your loan and either SBA remits a payment to us based on its forgiveness review or notifies us that no loan forgiveness is allowed.

If you do not apply for SBA forgiveness (or do not submit all required supporting documentation) within 10 months following the end of your Covered Period, or if the SBA determines that the loan is not eligible for forgiveness (in whole or in part) at any point in time, your loan payments will begin at that time.

You will be notified of the date your first payment is due. Regardless of the start date of your first payment, interest will continue to accrue during the deferment period and any balance still owing will be amortized over the remaining term of your loan (the first payment will also include interest then owing which has accrued from your original loan disbursement date). The maturity date of your loan will not be extended.  You may always prepay your PPP loan at any time.

The information provided above is based on our understanding of the CARES Act and the Paycheck Protection Program Flexibility Act, as enacted, and additional guidance provided by SBA and the U.S. Department of Treasury in effect as of September 13, 2020, and is subject to change based on any future laws, regulations or programs, or any future rules or guidance issued by SBA or other relevant regulatory authorities.

*The Covered Period is either (a) the 24 week (168 day) period beginning on your PPP loan disbursement date, or (b) if you received your PPP loan before June 5, 2020, you may elect to use an eight week (56 day) Covered Period.  For example, if you are using a 24 week Covered Period and received your PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4.  In no event may the Covered Period extend beyond December 31, 2020.

 

Update as of July 15, 2020:
Helpful Reminders When Completing the Loan Forgiveness Application

Before starting the online process, we recommend that you have all of the information required for the Application, including supporting documents. Download this additional list of potential items needed for your Application. In order to expedite your application, please make sure to follow the important steps below to avoid common errors that could delay your application.

1) Borrowers have the option to elect a 24-week Covered Period as opposed to the original 8-week period. The SBA has clarified that a Borrower may submit a loan forgiveness Application prior to the end of the 24-week period once the PPP loan proceeds have been used.

2) The business name on the forgiveness application should match the PPP loan application.

3) Both your SBA and Independence Bank loan numbers must be provided and can be found on the initial email from Independence Bank.

4) Double check that your Tax ID number is correct and is the same as your loan application.

5) The Loan Disbursement Date is the date you received the funds from Independence Bank.

6) The first date of your Covered Period MUST be the same as your disbursement date.

7) Even if you file early, the Covered Period MUST be either 8 or 24 weeks. For 8 weeks add 55 days to your disbursement date. For 24 weeks add 167 days.

8) Even if you file early, the Alternative Payroll Covered Period must also be either 8 or 24 weeks.

9) In addition to any internal payroll spreadsheets reconciling Payroll Costs a Borrower must provide either a payroll report from its payroll processor or a bank statement showing the payment of the funds. This applies for both the FULL and EZ Applications.

10) The maximum amount that can be included in cash compensation per employee:
$15,385 for 8-week Covered Period (8 weeks of $100,000 annualized)
$46,154 for 24-week Covered Period (24 weeks of $100,000 annualized)

11) The maximum amount that can be included in payroll costs per owner-employee or self-employed:
$15,385 for 8-week Covered Period (8 weeks of $100,000 annualized)
$20,833 for 24-week Covered Period (2.5 months of $100,000 annualized)

12) Schedule C filers are capped by the amount of their “owner compensation replacement” calculated based on 2019 net profit (line 31). Schedule C should be provided as part of your supporting documentation to the loan forgiveness application.

13) For Schedule C filers, health insurance and retirement benefits may not be included.

14) For S-Corps, health insurance benefits for owners may not be included.

15) Only State and Local employer-paid taxes can be included such as state unemployment taxes.

16) Employers cannot include 1099 employees as part of payroll costs in the forgiveness calculation.

17) For ALL NON-PAYROLL costs, you must include documents that verify that the obligation was in existence prior to Feb. 15th, 2020. This could include utility invoices, lease document, bank statements or mortgage statements from before Feb 15th.

18) If your loan forgiveness is less than 100% of your loan, you may be eligible for additional loan forgiveness by extending the Covered Period to 24 weeks. (You may file early once the funds have been used).

19) It is strongly encouraged that borrowers provide supporting spreadsheets which reconcile all categories of costs. Processing could be delayed if the bank has difficulty finding and comparing amounts in the documentation to the costs submitted in the application.

We appreciate your effort to make this a smooth process. If you have any questions, please contact your Independence Bank loan officer.

 

Update as of May 13, 2020:

Customers who participated in the Paycheck Protection Program (PPP) with Independence Bank, will be receiving important communication by email and contact from their lender regarding next steps of this program, which is the loan forgiveness process. Please familiarize yourself with this best practice information as detailed by the SBA as we begin to enter the next phase of this process. Borrower information and best practices can be found here. We appreciate your assistance as we navigate through this process together. If you have any questions at all, throughout this process, please contact your loan officer.

 

Update as of May 12, 2020:

Be Mindful of Scams
Please be mindful of scams that could appear as emails, social media posts, calls, texts or on websites. Utilities cannot be disconnected for non-payment during our current state of emergency. Do not send payment to scammers threatening to cut off your utilities. Always check the validity of the source by calling your utility company directly with the publicly listed number, do not reply back to an email that looks suspicious and don’t give out personal or financial information to someone that has called you requesting payment or they will shut off your utilities. For additional information, including how to report scams, please view the press release sent out by Gov. Andy Beshear.

 

Update as of April 17, 2020: SBA Paycheck Protection Program

The Paycheck Protection Program is providing Small Businesses with resources they need to maintain their payroll, hire back employees who may have been laid off and help with operational expenses. Here are few things you need to know about the program:

  • All communication will come from your loan officer regarding status of your loan.
  • Be mindful of any phone calls, texts or emails you receive asking for personal financial information. The SBA or U.S. Treasury will not ask for any of this if they were to reach out to you for any reason.
  • If you receive email correspondence from someone other than your loan officer, do not respond. Fraudsters are using official SBA logos to lure those into thinking they’re legitimate.
  • Report any suspected fraud by calling 1-800-767-0385 or reporting online

Additional resources for you to utilize are below.
Small Business Guidance & Resources Information
http://www.sba.gov

 

Update as of April 17, 2020: Economic Impact Payments

Economic Impact Payments are being disbursed. We’re here for you and want you to be vigilant on safeguarding yourself as well as your financial information. There has been an increase of COVID-19 related scams and fraudulent activity seen worldwide.

Here are a few helpful tips to keep in mind:

  • Be mindful of any phone calls, texts or emails you receive asking for personal financial information. The IRS will not ask for any of this if they were to reach out to you for any reason.
  • Check your accounts often to monitor your activity. This can be done by logging into Digital Banking, calling Telephone Banking, Text Banking or by viewing account balances at one of our ITMs.
  • Sign-up for account alerts in Digital Banking so you can receive text alerts on your account activity
  • The IRS is sending payments according to your recent tax return information on file. If your bank account from that time has changed, your check will be automatically mailed to you from the IRS to the address on file.
  • Check the status of your payment on the IRS website. If your check has not yet processed, you can update your information with the IRS in order to receive it as a direct deposit

Economic Impact Payment Information
https://www.irs.gov/coronavirus/economic-impact-payment-information-center

 

Update as of March 16, 2020
As developments continue surrounding Coronavirus (COVID-19), we’re here to ensure you that the health and welfare of our employees, customers and communities are a priority. Beginning Tuesday, March 17th all Independence Bank locations will be drive-thru only. If you need to reach us or schedule an appointment please call 1-877-621-1776.

 

Update as of March 13, 2020
At Independence Bank, our customers, employees and the communities we serve are at the heart of everything we do. Our efforts surrounding the Coronavirus (COVID-19), are focused on you.

Our locations are open and available to serve our customers. If visiting a location, know that we have implemented increased cleaning procedures in high-touch areas and have educated our employees on best practices recommended by the CDC.

You can facilitate virtually any banking need from your desktop or mobile device 24/7, should you choose to exercise more precautions as the development of the Coronavirus continues.

Bank From Home
Digital Banking
Telephone Banking
Text Banking
ATM & ITMs
Transfer Funds
Bill Pay
Person to Person Payments
Remote Check Deposit
External Transfers

Now, our ATMs also function as Interactive Teller Machines (ITMs) in each of our markets. You can make deposits, cash a check, make a loan payment, transfer funds between accounts on your own or with the assistance of an interactive teller with extended hours.

We are diligently monitoring the developments of the virus in accordance with the CDC and will continue to keep the health of our customers, employees and communities at the forefront. We are available to assist you if you need us, as always.

If you should need additional assistance please don’t hesitate to call your nearest Independence Bank location.

 

Important Links:
Centers For Disease Control and Prevention (CDC)
Independence Bank ATM & ITM Locations
Independence Bank Contact-Us

 

Be Mindful of Scams:
Please be mindful of Coronavirus scams that could appear as emails, social media posts, calls, texts or on websites. Always check the validity of the news source. Be wary of any communication that asks you for personal information or donations. For additional information, including how to report scams, please view the press release listed below sent out by Gov. Andy Beshear and Attorney General Daniel Cameron. Full Press Release

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