Paycheck Protection Program Loan & Forgiveness Guidance
Updated as of June 19, 2020
PPP Funding & Forgiveness
The Small Business Administration today released a three-page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees.
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return).
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19.
The streamlined forgiveness form is expected to smooth the forgiveness application process for a substantial portion of PPP borrowers. SBA also updated the regular Form 3508 to reflect recent changes made by Congress in the PPP Flexibility Act and issued a new interim final rule that implements changes made by the PPPFA.
First Northern Bank would like to guide you through the next stages of the Paycheck Protection Program loan process.
Next Steps: Funding & Forgiveness
IMPORTANT DISCLAIMER: First Northern Bank is not affiliated with Moss Adams, LLP and is not responsible for the advice provided in this Webinar.
Economic Injury Disaster Loan (EIDL)
As of June 16, 2020, the SBA is now accepting new applications for COVID-19 Economic Injury Disaster Loans and Advance
COVID-19 Customer Support
As the coronavirus (COVID-19) pandemic continues to develop, First Northern Bank’s number one priority is the safety and well-being of its customers, employees and communities. We are very fortunate that everyone is pulling together to make this difficult time run as smoothly as possible at First Northern Bank. We are especially grateful for our amazing team of employees -they are taking the situation in stride and taking good care of our customers.
In addition, First Northern Bank has proactively developed a COVID-19 Customer Support Plan designed to provide relief to those business and consumer customers financially impacted by the current crisis. The Plan includes:
- Communications regarding the safety and soundness of America’s banks. With FDIC Insurance on deposit accounts up to $250,000, banks are the safest place for your money.
- Loan Assistance for those impacted by COVID-19
- Waiver of all Late Fees for qualifying consumer, small business, commercial and agricultural loan customers for a period of 60 days (may be extended if economic circumstances dictate). To qualify for this waiver, the borrower must not be past due more than 30 days on any loan as of March 1, 2020. This waiver is automatic for qualifying customers; you will not need to request the waiver.
- Payment relief options, please contact your branch or FNB’s Central Loan Department at (707) 678-0226 for details.
- Delinquencies resulting from impacts of COVID-19 will not be reported to the credit reporting agencies.
- Access to loan programs through FNB’s strong partnership with I-Bank and Small Business Loan Administration (SBA). More information on the SBA's Economic Injury Disaster Loans found here.
- Deposit Account Assistance
- Waiver of all Overdraft/Non-Sufficient Funds fees for all business and consumer customers for a period of 60 days (may be extended if economic circumstances dictate). This waiver is automatic; customers do not need to request the waiver.
- Increased Debit Card Limits for most consumer clients.
- As a member of the MoneyPass ATM Network, FNB deposit customers have access to surcharge-free ATMs at over 50 locations within the Bank’s local footprint and hundreds more throughout the state.
- Waiver of Early Withdrawal Charges for customers wishing to withdraw funds from their Certificates of Deposit.
First Northern Bank is committed to continuously monitoring the rapidly evolving impacts of COVID-19, and stands ready to assist its customers, employees and communities as we all navigate this challenging time together.
ABA Offers Suite of Communications Resources on Economic Impact Payments
Since the CARES Act was passed, ABA has urged the IRS and Treasury to maximize the use of electronic disbursement methods when issuing economic impact payments rather than issuing paper checks in order to get payments to consumers faster and reduce the risk of fraud.
The association has also created several new resources for banks to help educate their customers about their economic impact payments. These resources include a series of commonly asked questions—which will be continually updated with the latest information from the Treasury Department—as well as consumer tips for avoiding fraud scams related to the economic impact payments.
Consumer Financial Protection Bureau Releases Video on How Mortgage Forbearance Works under CARES Act
The Consumer Financial Protection Bureau (Bureau) has released a video on how struggling homeowners can obtain mortgage forbearance if their finances are impacted due to the COVID-19 pandemic.
The Bureau has also issued additional information for consumers on mortgage and student loan payment relief and how to avoid scams.
Below are the resources for consumers:
The Small Business Owner’s Guide to the CARES Act
Branch Hours Reinstated
All First Northern Bank’s branches will remain open to serve its customers during this unprecedented national health emergency. We are focused on keeping our branches clean, promoting good health among our employees, and we are practicing ‘social distancing’.
Should you prefer not to come into a branch to make a deposit, please use a FNB ATM (no envelope or deposit slip needed). The business night depository located outside our branches may also be used for deposits that do not exceed the height of the deposit slot; just be sure to place your check, cash and deposit slip into a sealed envelope. We will process deposits in our night depositories multiple times throughout the day, up until 4pm.
Beware of Potential Scams Using FDIC Name
In light of recent developments related to the coronavirus, the Federal Deposit Insurance Corporation (FDIC) is reminding Americans that FDIC-insured banks remain the safest place to keep their money. The FDIC is also warning consumers of recent scams where imposters are pretending to be agency representatives to perpetrate fraudulent schemes. For more intormation, visit the FDIC website here to read more.
Coronavirus Disease 2019 (COVID-19)
Your Wellness Is Important to Us.
First Northern Bank is Preparing for the Coronavirus.
As news about the Coronavirus continues to develop, we want to share with you that FNB has a 3-Phase Pandemic Plan in place for execution should the Coronavirus continue to escalate. We have taken additional measures to keep our branches clean and to promote good health among our employees. Our focus is to ensure you can access your money when you need it.
First Northern Bank will continue to monitor information from the Center for Disease Control, California Department of Public Health and local County Public Health sites. We have provided links to these key sites on our website so you too can stay current.
FNB Customer Communications