Paycheck Protection Program (PPP) Draw 1 and 2   (Update as of January 10, 2021)

**Please read this message in its entirety!**

EagleBank has prepared its Online PPP Portal to accept applications from eligible self-employed individuals and businesses who were customers of the bank as of June 30, 2020, that may wish to apply for PPP loans reauthorized under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 (the "Act").

The Small Business Administration (SBA) issued interim final rules on January 6^th to carry out the Act which was signed into law by the President on December 27, 2020.  The SBA released two forms late on January 8, 2021:

• Form 2483 – PPP Borrower Application Form (First Draw Form)
• Form 2484-SD – PPP Second Draw Borrower Application Form

The SBA also announced that they will open their portal for lenders to submit applications in a phased approach.  Only community financial institutions will be able to submit applications to the SBA on Monday, January 11, 2021.  The SBA will roll out the opening to other lenders over the next several days.  They have not stated how or when this roll out will occur. 

The  interim final rules did provide the following important information:

• Eligible self-employed individuals and businesses with 500 or fewer employees who did not previously receive a PPP loan may apply for a PPP loan (subject to all other applicable application requirements and program rules).

• Previous recipients of PPP loans will be eligible for a second loan if, among other requirements, they:

• have used the full amount of their first PPP loan for eligible purposes
• have 300 or fewer employees (second-time PPP borrowers with 300 or fewer employees will generally be eligible to borrow an amount equal to 2.5 times their average monthly payroll.)
• have sustained a 25% revenue loss in any quarter of 2020 relative to the same quarter of 2019.

• Businesses from the food service and accommodation industries, classified under the North American Industry Classification System (NAICS) beginning with the number 72, may be eligible to borrow an amount equal to 3.5 times their average monthly payroll.

• Loans are limited to a maximum amount of $2,000,000.00
   

What you need to do if you wish to apply for a PPP loan under the Act once the program is opened:

• If you previously obtained a PPP loan that was processed by EagleBank, the individual(s) who executed the loan paperwork should have received an e-mail regarding the changes to the Online Portal log in.  If you did not receive that email, please reach out to your Relationship Manager.  The Online Portal log in screen changes and the Draw 2 application will be available on Monday, January 11, 2021, at 9:00AM EST for you to prefill.  These will not be submitted until the SBA opens their portal to EagleBank.

• If EagleBank did not previously process a PPP loan for you and you were a customer of EagleBank as of June 30, 2020, please send an e-mail to FirstTimePPPLoan@eaglebankcorp.com.  Please indicate in your e-mail if you have previously received a PPP loan and from what institution.  We will respond to your e-mail requesting the information needed to set you or your organization up in our Online PPP Portal. 

Reminder: EagleBank is only accepting PPP applications from customers who had an active deposit or loan relationship with EagleBank as of June 30, 2020.

By accepting your credit application for review under the Paycheck Protection Program (“PPP”), EagleBank, its parents, subsidiaries, and affiliates, is not representing that your loan request will be approved or that sufficient money will be available to fund the loan, in whole or in part, owing, among other things, to the extreme demand for limited funds allocated by Congress in a time of national emergency.  EagleBank, its parents, subsidiaries, and affiliates, expressly disclaims all liability concerning, relating to, and/or arising out of the loan review process, its credit decisions, and any inability or failure to disburse any amount of the requested loan funds.
 

Update for PPP Borrowers (Update as of January 4, 2021)

Here are the latest updates as we await new guidance from the Small Business Administration (SBA).  

Below are some important dates which you should be aware of.  You will note that while there are specific dates regarding matters contained within the legislation, there is no date yet as to when the next round of PPP Originations will begin.

Current Timeline:

• The SBA has 10 days to establish procedures and issue guidance on the next round of PPP Originations (due by Jan. 6 from the SBA).
• The SBA has 24 days to make updates to the current PPP Forgiveness process and associated forms (due by Jan. 20 from the SBA).
• New PPP funding will be available until March 31, 2021 or until program funding is exhausted (whichever is first to occur).  Again, no date has been established as to when new PPP Originations will begin.

If you have a PPP loan with a balance of $150,000 or less and would like to wait for the updated Forgiveness process and forms, below are the steps to take:

• If you have not started your Forgiveness application, you can wait until the new forms are published by the SBA.  We will let you know when they are available in our Online PPP Portal.
• If you have started your Forgiveness application, but have not submitted it to the Bank for review, you can simply wait until the new forms are published by the SBA.  We will let you know how to switch to the new forms when those forms are available in our Online PPP Portal.
• If you have submitted your Forgiveness application, but have not received an email to eSign your Forgiveness application, you can send an email to PPPForgiveness@eaglebankcorp.com and request that we push your Forgiveness application back to you. 

Update on Next Round of PPP Funding (Update as of December 28, 2020)

We are monitoring the regulations and guidance regarding the next round of PPP funding.  As of 12/28, the legislation has been signed.  We are now waiting for the SBA to finalize the guidance on how this will be implemented.  Until the SBA releases this guidance, we are not in a position to take calls or address inquiries regarding the program.  We plan to continue to participate in the program at this point, but will only be able to accommodate customers of EagleBank as of June 30, 2020.  If you are not an EagleBank customer or do not already have existing accounts, we recommend you explore options outside of EagleBank to put your business in the best possible position for receiving funds.  We appreciate your patience.

Coming Soon: Changes to EagleBank's Online PPP Portal Log In Credentials (Update as of January 8, 2021)

To maintain a secure log in process, the Small Business Administration (SBA) released data related to the Paycheck Protection Program (PPP) which necessitates a change to the log in credentials.  Therefore, we wanted to inform you that on Sunday, January 10, 2021, the credentials to log in to EagleBank’s Online PPP Portal will be changing. 

The updated log in credentials will be:

• Borrower EIN
• Borrower Email
• Borrower SSN

Who will have to access the Online PPP Portal:

• For borrowers with an outstanding balance on a PPP loan that have not started their Forgiveness application:  all individuals that were signatories to the original loan documents will be added to the Online PPP Portal.  Any of these individuals can access the platform when the log in page is updated.
• For borrowers that have started their Forgiveness application:  for now, only the individual that is working on the Forgiveness application will be able to access the portal. 
   

Update on Next Round of PPP Funding (Update as of December 24, 2020)

We wanted to provide you an update on what we know and next steps related to the next round of PPP funding. 

What We Know:

• The text of the Consolidated Appropriations Act, 2021 has been released.
• As of today, the Act still needs to be signed by the President before becoming law.
• Once the Act is signed by the President, the Small Business Administration will be given a period of time to create the procedures (it appears to be at least 10 days).
• We are working on making the required adjustments to the Online PPP Portal to accept applications for additional funding requests.
• It should also be noted that the text of the Consolidated Appropriations Act, 2021 states that the amendments to the Forgiveness application for the Payroll Protection Program shall not apply to borrowers that had already received forgiveness before the date of enactment of the Act
• As the language in the Act currently stands, there is a provision for those PPP borrowers with a loan amount of $150,000 or less: to provide a simplified, one page Forgiveness application form that will not require supporting documentation to be submitted but documentation will need to be retained by you.  We realize borrowers with loans in the amount of $150,000 or less may wish to wait for the Act to be signed since, if signed into law, it would make their Forgiveness process much simpler.

What’s Next:

• The Act must be signed by the President.
• The SBA must release procedures related to the next round of funding and Forgiveness application updates.
• Emails will be sent to our existing PPP borrowers on how to apply for the next round of funding.

We will continue to provide you updates as we have them.
 

PPP Borrowers with Loans $150,000 or Less - Action Required (Update as of December 23, 2020)

If your PPP loan is $150,000 or less, we would like to know if you would like us to push your Forgiveness application back to you until the Consolidated Appropriations Act, 2021 has been signed.

As of today, the Act still needs to be signed by the President before becoming law.  As the language in the Act currently stands, there is a provision for those PPP borrowers with a loan amount of $150,000 or less: to provide a simplified, one page Forgiveness application form that will not require supporting documentation to be submitted but documentation will need to be retained by you.  We realize borrowers with loans in the amount of $150,000 or less may wish to wait for the Act to be signed since, if signed into law, it would make their Forgiveness process much simpler.

If you would like us to push your Forgiveness application back to you, please send an email to PPPForgiveness@eaglebankcorp.com requesting your application be pushed back to you. 

If we do not hear from you by Tuesday, December 29th, we will continue to process your Forgiveness application. 

Two things of note:

• Your current deadline to apply is 10 months from the end of your PPP Forgiveness Covered Period (“Covered Period”). Your Covered Period is either: (i) the 24 week period beginning on your PPP loan disbursement date or (ii) if you received your PPP loan prior to June 5, 2020, you may elect to use an 8 week covered period.  In neither event will your covered period extend beyond December 31, 2020.
• It should also be noted that the text of the Consolidated Appropriations Act, 2021 states that the amendments to the Payroll Protection Program shall not apply to borrowers that had already received forgiveness before the date of enactment of this Act. 

Several resources are available to you help you navigate EagleBank’s online PPP Portal:

• Overview of the Application process flow
• FAQ’s regarding the PPP Portal
• Videos on how to navigate the PPP Portal

Prior to logging onto the PPP Portal, EagleBank recommends you download the most up-to-date PPP Loan Forgiveness Application and Instructions.  The Loan Forgiveness Application Instructions provide detailed information on the supporting documentation you will be required to upload in support of your Forgiveness Application.  The SBA has also provided PPP Loan Forgiveness FAQ’s, published on October 13, 2020.  Many PPP borrowers have found this document helpful in understanding and completing their Forgiveness Application. 

EagleBank PPP Portal URL: https://eaglebankcorp.expressbankloan.com/2/#/match

Log in requirements:

• A valid email address on one of the authorized signers provided during the PPP application process.
• Your company’s Tax Id.
• The original principal balance of your PPP loan.  The original principal balance can be found on the PPP Note.

Disclosures

EagleBank, its parents, subsidiaries, and affiliates, expressly disclaims all liability concerning, relating to, and/or arising out of the loan review process, its credit decisions, and any inability or failure to disburse any amount of the requested loan funds.

* Please note, always confirm the authenticity of anyone asking for your information to avoid phishing or fraud. 

Enacted March 27, 2020 the CARES Act included several provisions designed to provide relief to individuals and businesses as well as the banking system. Among the more significant components of this legislation for our Company was the creation of the Paycheck Protection Program (“PPP”). Loans made under the PPP are fully guaranteed as to principal and interest by the Small Business Administration (“SBA”), whose guarantee is backed by the full faith and credit of the U.S. Government. PPP-covered loans also afford borrowers forgiveness up to the principal amount of the PPP-covered loan if the proceeds are used to retain workers and maintain payroll or make mortgage interest, lease and utility payments. The SBA will reimburse PPP lenders for any amount of a PPP-covered loan that is forgiven.

To help offset the impact of COVID-19, CARES offers payroll protection to businesses with fewer than 500 employees. The SBA will cover certain payroll and other operating costs used to calculate the loan amount as long as such businesses remain open and maintain payroll during this emergency. Loans may be fully forgiven if there are no employee layoffs for four months or if any employees previously laid off are rehired. The program works retroactively to February 15, 2020, to help restore the workforce.

• Please work directly with your EagleBank Relationship Manager or Branch Representative to discuss the status of any submitted application or inquiry.

• If you need any more information, please call the Customer Care Center: 301.986.1800.

We appreciate your interest and are especially grateful for your patience. For additional resources, including grants and loan programs for small businesses, please visit:

US Small Business Administration (SBA):

The Three Step Process: Disaster Loans

SBA Coronavirus Relief Options

Relief Options by State:

Maryland: Maryland Coronavirus (COVID-19) Information for Business

Virginia: Support for Business 

DC: Recovery | For Businesses 

The SBA is working on additional programs administered by banks but no information is available until signed into law.

For questions on the repayment of the PPP Loan and Employee Retention Credit, visit this IRS website:

COVID-19-Related Employee Retention Credits: Interaction with Other Credit and Relief Provisions FAQs

We urge you to remain vigilant to scams related to COVID 19. 

FTC

WTOP Alerts on Loan Scams

SBA Programs - Scams and Fraud Alert

Threat Advsiory Alert

Please keep up to date on FAQ's about the PPP from the SBA