A new simplified forgiveness process for loans up $150,000 could mean a different application process for some.

Download the Paycheck Protection Program webinar PDF. 

Download Now

Learn more about loan forgiveness

 

Important Update Regarding Simplified Forgiveness

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was passed, and includes simplified forgiveness for PPP loans of $150,000 or less. However, due to the recency of this announcement, our forgiveness portal has not yet been updated to include this simplified application process. We are diligently working to update the portal to reflect the simplified application process as soon as possible, and will notify customers with loans of $150,000 or less, as soon as it becomes available. Considering this, customers with PPP loans $150,000 or less may choose to wait prior to submitting their forgiveness application, in order to save time and streamline the forgiveness process for their PPP loan.

 

Automatic Extension of First Payment PPP Loan Due Date

For customers who have not yet received a forgiveness decision, BBVA USA has extended the due date of your first payment for your Paycheck Protection Program (PPP) loan until May 2021.  Your new first payment due date will be on the same calendar day in May 2021 as the calendar day of your current due date identified on your PPP Promissory Note.  For example, if your current first payment due date is October 17, 2020, your new first payment due date will be May 17, 2021. Once the SBA has made a final determination of a borrower's PPP forgiveness application, we will communicate with any PPP borrower that has a remaining PPP loan balance regarding repayment terms.

You are not required to take any action or sign any modification agreement for this first payment due date extension.          

We extended the first payment due date of your PPP loan because the Paycheck Protection Program Flexibility Act of 2020 extended the deferral period for payment of principal and interest for all PPP borrowers.   During this additional deferral period, you are not required to pay any amount on your PPP loan.  However, you may make a payment on your PPP loan at any time. 

If you have any questions, please contact your banker or your local branch.

 

 

Changes in forgiveness requirements benefit your business

In June 2020, the Paycheck Protection Program Flexibility Act of 2020 was passed. The revision to the forgiveness of loans will provide businesses with greater flexibility in meeting the PPP loan forgiveness requirements, such as:

  • Extending the loan term to 5 years in certain circumstances.
  • Reducing the amount an eligible recipient must use for eligible payroll expenses to 60%.
  • Extending the time you can use your PPP loan proceeds to 24 weeks.
  • Extending the deferment of the payment of principal, interest and fees until the loan forgiveness amount is remitted to the lender.
  • Expanded safe harbors related to a reduction of employees.
  • Please click here to see additional details related to the  Paycheck Protection Program Flexibility Act of 2020.
 

Easier loan forgiveness and an easier process

The online BBVA PPP Loan Forgiveness Application Portal will soon be available. This intuitive and easy-to-use access point will capture all of your application details and supporting documentation needed for SBA loan forgiveness. The portal will include:

  • A Borrower Knowledge Center with access to education materials, FAQs, and search features.
  • A central place to submit all required information, enter eligible payroll and non-payroll costs, and upload all required supporting forgiveness documentation.
  • Secure messaging with experts regarding your questions and concerns.
  • Your forgiveness dashboard for submission details and current status.
  • Access to forgiveness calculations and process milestones.
  • Electronic signing of your forgiveness application.

Eligible recipients of PPP loan forgiveness will receive complete payment deferment including the payment of principal and interest for the time period prescribed in the Paycheck Protection Program Flexibility Act of 2020. As additional guidance from the SBA becomes available, we will provide that information and launch our portal shortly thereafter.

 

 

Completing the PPP loan forgiveness process:

 

At this time, please do not mail or submit your PPP Loan Forgiveness Application (SBA Form 3508). You will need to submit all your documents and information into the new BBVA PPP Loan Forgiveness Application Portal. This will help you expedite the entire PPP loan forgiveness application process.

PPP Loan Forgiveness
Frequently Asked Questions*


Has BBVA made my PPP borrower data public?

On December 1, the Small Business Administration released public data about Paycheck Protection borrowers. Some of the information included names, addresses, exact loan amounts and who their PPP lenders were. The reason this information was made public was because of a court order following lawsuits brought by media organizations seeking the data.

As your bank, BBVA played no role in the court decision. Our first priority is to protect your privacy and we would never publicly disclose any of your personal data. As always, our commitment is to your business’ financial health. We appreciate your ongoing partnership with BBVA.

When can I apply for forgiveness for my PPP loan?

BBVA USA plans to make our online PPP loan forgiveness application portal available soon.  You will receive a separate email and separate letter with further details and instructions closer when the online PPP loan forgiveness application portal is ready to open. 

After the online PPP loan forgiveness application portal is available, an eligible PPP borrower may apply for forgiveness of its PPP loan anytime on or before the maturity date of the loan, including before the end of the covered period, if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.

How long are principal and interest payments deferred?

If an eligible PPP borrower fails to apply for forgiveness within 10 months after the last day of the covered period or if the SBA determines that the loan is not eligible for forgiveness (in whole or in part), the PPP loan is no longer deferred the PPP borrower must begin paying principal and interest.

Where can I learn more about the requirements for PPP loan forgiveness?
When will the forgiveness portal be launched and how will I be notified?

We will be inviting business customers to apply for forgiveness using a phased approach. 

You will receive a separate email and separate letter with further details and instructions closer to when the online PPP loan forgiveness application portal is ready to open.

If I apply for forgiveness, when will my PPP loan be forgiven?

Once you submit your forgiveness request, your lender will have 60 days to issue a decision on your forgiveness application to the SBA. The SBA will then have 90 days to evaluate eligibility for loan forgiveness in accordance with PPP regulations and guidance issued by the  SBA through the date of application. The SBA may direct a lender to disapprove your forgiveness application if the SBA determines you were ineligible for the PPP loan.

I was told I need to use the funds by a certain date. Is this true?

Yes. Either within the 8-week covered period or the 24-week alternative covered period from the loan disbursement date.

Is there action I need to take to opt in to the 8-week covered period or the 24-week alternative covered period?

No specific action is needed to opt in to the chosen period. The Covered Period begins on the origination date of the covered loan, which is also the date the lender makes the first disbursement of the covered loan to the borrower.

PPP borrowers that obtained a PPP loan before June 5, 2020 will have the option at the time of submission of the PPP loan forgiveness application to elect a covered period of either:

(i) 8 weeks from the date the PPP loan was originated; or
(ii) 24 weeks from the date the PPP loan was originated.

For PPP borrowers that obtained a PPP loan on or after June 5, 2020, the last day of the covered period is the earlier of:

(i) 24 weeks from the date the PPP loan was originated; or
(ii) December 31, 2020.

An employee quit during the covered period. How do I account for that?

Please refer to the SBA’s 6 FTE Reduction Exceptions which include instances in which Employees voluntarily resigned. FTE reductions due to one of those 6 Exceptions will not reduce borrower’s loan forgiveness eligibility.

I have been unable to reopen my business. Is the loan dependent on reopening?

Please refer to SBA’s FTE Reduction Safe Harbor 1, which addresses businesses unable to operate during the Covered Period at the same level as before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020, by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19.

Where do I find a copy of the SBA 3508 Form?

An electronic version of SBA Form 3508 will be available within the BBVA Paycheck Protection Program Forgiveness Portal, and will be pre-filled as much as possible. Please do not complete a hard copy version of the form.

We have started the Forgiveness Application, but I need additional guidance and forms to complete the process.

Please do not complete the forgiveness application until the BBVA Paycheck Protection Program Forgiveness Portal is available. The forgiveness portal will help to simplify the forgiveness process. All forms and calculations, as well as a place for asking questions via secure messaging will be available within the portal.

What type of documentation will I need?

Payroll reports, tax forms, payment receipts, cancelled checks, and account statements are examples of the documentation that will be required.

What will be the best format for uploading this documentation?

PDF documents.

I understand there is a simplified forgiveness process for smaller loans. Is that true?

On December 27, 2020, the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act was passed, and includes simplified forgiveness for PPP loans of $150,000 or less. However, due to the recency of this announcement, our forgiveness portal has not yet been updated to include this simplified application process. We are diligently working to update the portal to reflect the simplified application process as soon as possible, and will notify customers with loans of $150,000 or less, as soon as it becomes available. Considering this, customers with PPP loans $150,000 or less may choose to wait prior to submitting their forgiveness application, in order to save time and streamline the forgiveness process for their PPP loan.

When is the deadline to apply for forgiveness and how long will it take to receive forgiveness?

A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan — including before the end of the Covered Period , if the borrower has used all of the loan proceeds for which they are requesting forgiveness. If the borrower does not apply for loan forgiveness within 10 months after the last day of the Covered Period, or if the SBA determines that the loan is not eligible for forgiveness (in whole or in part), the PPP loan is no longer deferred and the borrower must begin paying principal and interest. If this occurs, the lender must notify the borrower of the date the first payment is due. Once the application is submitted for forgiveness, the lender has 60 days to review the application and documentation submitted by the customer, and the SBA has another 90 days to review the lender’s decision.

Will the loan term be adjusted for loans submitted after the CARES Act?

All PPP loans booked June 5th and later have a 5-year term. Loans booked prior to June 5th have a 2-year term, unless the customer and lender agree to adjust the term to five years.

What are the tax implications of a receiving a PPP Loan?

Please consult with your tax advisors/CPA regarding any tax implications or visit IRS.gov for Notice 2020-32 for information on tax implications.

 

Together, we will get through this challenge. 

BBVA will continue to monitor conditions and look for ways to improve our service while protecting customers and team members alike. Please stay safe. 

Please remember that BBVA will never call, email, or text you and ask for your PIN or private financial information. For security tips and helpful links, please visit our Security Center.

Details you need to make a smart decision

*BBVA USA and its affiliates do not provide tax, legal or accounting advice. The information in this forgiveness portal should not be a substitute for, tax, legal or accounting advice. Borrowers should consult their own tax, legal and accounting advisors before engaging in any transaction.