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PPP LOANS & COVID - 19 UPDATES

Community Bank was founded on the principle of “Neighbor Helping Neighbor”.  We realize that, due to the coronavirus pandemic, you may be experiencing difficulty.  However, Community Bank has instituted loan deferral programs that may help you.  There are also a number of special government loan programs for businesses that I encourage you to understand and utilize. 


PPP Loan Customers

 

The Small Business Administration (SBA) Paycheck Protection Program (PPP) funding has been exhausted.  Community Bank is no longer accepting applications as of May 4, 2021

If you received a First Draw PPP loan and you are ready to apply for forgiveness, please email our forgiveness team at  PPPForgivenessTeam@communitybank.tv for access to our online forgiveness portal.

Please note that if you don’t apply for forgiveness, your deferral period will end 10 months and 24 weeks after you received your PPP loan and you will be required to begin making payments the first month after your deferral period ends.

If you apply for forgiveness before the end of your deferral period, your deferral period will continue until Community Bank receives your forgiveness payment from the SBA or a decision is made that your PPP loan will not be forgiven at which time you will be required to begin making payments the first month after your deferral period ends.

If you have already received forgiveness, you will be reimbursed for any EIDL advances that were deducted from their forgiveness payment, as per SBA guidance.


January 16, 2021 - Community Bank is happy to announce that we are beginning to accept applications for Round 2 of The Paycheck Protection Program!

 

Please email your Commercial Banker for access to our on line application portal.  If you do not have a Commercial Banker, please email PPPapplications@communitybank.tv with your name, email address and Community Bank Branch location and a Community Bank Team Member will contact you.  

 Office

 Name

 Email

 Greene Business Center

724-627-8899

 

 Jennifer Ross

 

jross@communitybank.tv

 Rostraver Office

724-929-3900 

Kristen Kaib

724-880-3041

kkaib@communitybank.tv

 

Northern Business Center

724-933-8300

Lance DiYanni

724-317-5693

ldiyanni@communitybank.tv
 

Steven Diffenderfer

412-389-1437

sdiffenderfer@communitybank.tv
 

Andrew Colburn

412-443-5612

acolburn@communitybank.tv

 Washington Corporate Center

724-225-2400

Shelia Cowieson

724-223-1270

 scowieson@communitybank.tv
 

 Ross Langford

724-223-1272

 rlangford@communitybank.tv
 

Stephen McCarron

724-941-0397

smccarron@communitybank.tv

West Virginia and Ohio

Woodsdale Office

304-233-0060

 

Travis Wade

304-218-2468

twade@communitybank.tv

Central West Virginia

Buckhannon Office

304-472-0052

Connie Tenney (temporarily out of the office - Please contact John McDonough)

304-218-2480

 

ctenney@communitybank.tv

jmcdonough@communitybank.tv

Treasury Management 

724-986-8036

Jeff Bixler jbixler@communitybank.tv

PPP2 What You Need to Know!

Summary of PPP 2 Changes:

General Terms

Use of Proceeds

The SBA has expanded the types of expenses in which businesses can use their PPP funds. As we understand the law, funds can be used for the following costs as long as they are within the designated Covered Period.

Eligibility Requirements

Your business is eligible if you were operating prior to February 15, 2020, you had employees for whom there was paid salaries/payroll tax/contractors, you experienced a 25% decrease in revenue for one quarter in 2020 compared to 2019, and you meet any one of the following criteria:

Rule Modifications

Loan Requirements

Eligible businesses will need to meet the following criteria:

Permitted Payroll Costs

For employers, Permitted Payroll costs will include any compensation with respect to an employee that is:

If you are a sole proprietor, independent contractors or self-employed individual, then take the wage, commission, income, net earnings from self-employment, or similar compensation that is not more than $100,000 in one year as pro-rated for your designated covered period.

Excluded Payroll Costs

Subtracted from the Permitted Payroll Costs are the Excluded Payroll Costs which are defined as:


January 19, 2021    Second Draw Paycheck Protection Program (PPP) Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What  Documentation to Provide


January 12, 2021 - Community Bank will be participating in round two of the PPP Loans – more information will be posted in the coming days.

Here are some helpful links to help navigate the PPP Loans.

What SBA Resources are Available?

Updated First Draw Forms

 Second Draw Forms

 Additional Guidance & Resources

For more information and updates, visit SBA.gov/PPP or Treasury.gov/CARES 


September 1, 2020 - Community Bank SBA Forgiveness Portal Is Now Active

 

The Community Bank SBA Forgiveness Portal is now active.  When you are ready to submit your loan for forgiveness, please email the team pppforgivenessteam@communitybank.tv  with your name and your SBA Loan Number which is located on your PPP Loan Documents.

The PPP Forgiveness Team will email you:

You will need all of this information to apply for forgiveness.

We want to express our sincere thanks to you for your patience and dedication to learning the PPP Loan Forgiveness process. We appreciate the complexity of this process and remain committed to helping you obtain the maximum forgiveness possible for you and your business.


Update PPP Customer Notification

August 19, 2020

Dear PPP Customer:

Beginning the week of August 31st, please look for an email from Community Bank which will be an invitation to submit your forgiveness application. We will be emailing our customers with PPP Loans at various times throughout a two week time frame to help facilitate a manageable and smooth process.

In the email, you will be provided the following:

  1. SBA Loan Number
  2. Community Bank Loan Number
  3. Funding date
  4. Original SBA FORM 2483 that will need to match your loan amount.

In the meantime, attached are two presentations to help you manage forgiveness.

Managing Forgiveness as an Owner-Employee

How to Optimize Loan Forgiveness

 


Updated PPP Forgeviness Email Correspondence 

August, 10, 2020

Dear Community Bank PPP Customer

“Unfortunately, the HEALS or HERO Act did not get passed before Congress went into recess last week.   We are not sure what an Executive Order from the President will bring this week but it will likely not impact PPP Forgiveness. As such, we are getting  ready to open our PPP Forgiveness portal and look forward to receiving your application.

In the next few days, please be on the lookout for an email from us which will be an invitation to submit your forgiveness application. Our plan is to email our borrowers at various times throughout the week to help facilitate a manageable and smooth process.

In addition, we will provide a step-by-step video tutorial which will help you navigate our online forgiveness platform, SmartBiz. We will also provide additional resources, such as a checklist, helpful tips, and all of the various ways that you can contact us to submit your questions.

As a reminder, please review our website which contains all of our previous PPP Forgiveness email blasts.

We want to express our sincere thanks to you for your patience and dedication to learning the PPP Loan Forgiveness process. We appreciate the complexity of this process and remain committed to helping you obtain the maximum forgiveness possible for you and your business.”


Update: Paycheck Protection Program (PPP)

Loan Forgiveness Information 

 
July 10, 2020
 
We are approaching the start of the loan forgiveness stage and will soon provide you with a link to electronically file your forgiveness application. The SBA is currently making the final updates to the PPP Loan Forgiveness process. Next week, testing will begin and if all goes well, the plan is to start accepting forgiveness applications within the next 30 days.
In the meantime, we continue to encourage you to continue to go to our website for additional information. For your convenience, we’ve provided a few important highlights below. 
 
  • Borrowers can submit a loan forgiveness application any time on or before the maturity date of the loan, including before the covered period ends. You will want to submit your application either at the end of your chosen Covered Period or when 100% of your forgiveness is achieved. 
  • If the borrower does not apply for forgiveness within ten months after the last day of the covered period, the PPP loan is no longer deferred, and the borrower must begin paying principal and interest. 
  • There are two different PPP loan forgiveness forms (SBA Form 3508 & 3508EZ). While both forms are on our website for review, you will not need these as you will be completing these online.
  • To be eligible for the 3508EZ form for loan forgiveness, the borrower must meet one of three tests: 1) be self-employed, 2) did not reduce salaries or wages of employees by more than 25%, or, 3) did not reduce the employees’ number of hours plus suffered a reduction of business activity. (more detailed explanation follows)
Regarding the EZ Form: The SBA created a shortened form to make it easier to apply for loan forgiveness. For guidance on using this form, refer to SBA Form 3508EZ Instructions, which can be found on our website. To qualify to use this form, borrowers must meet at least ONE of the three criteria below:
 
  1. Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483).
  2. Borrower did not reduce annual salary or hourly wages of any employee by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period compared to the period between January 1, 2020 and March 31, 2020. And, the borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period.
  3. Borrower was unable to operate during the Covered Period at the same level of business activity 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 of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19.

For borrowers that do not meet at least ONE of the criteria above, they will be asked additional questions, which will result in filing the standard form.

For a list of documents required to be submitted with the loan forgiveness application, see the section titled ‘Documents that Each Borrower Must Submit’ within the loan forgiveness instructions or check our website.

The date by which borrowers may eliminate reductions in full-time equivalent employees, their salary and wages, employee availability, and business activity has been extended to December 31, 2020.

The maturity for PPP loans approved by SBA on or after June 5, 2020, is five years. Any PPP loan approved before June 5, 2020, has a two-year maturity unless the borrower and lender mutually agree to extend the term of the loan to five years. Should you not achieve 100% forgiveness, and you are still undergoing hardship as a result of the pandemic, you can ask for your loan to be extended from two years to a five-year maturity.

Borrowers that received their PPP loans prior to June 5, 2020, can select either an eight-week or 24-week covered period. For PPP loans made after June 5, 2020, it is a 24-week covered period.

The advantage of the 8-week period is that it allows borrowers to receive their forgiveness faster while the 24-week period allows for a longer time to achieve forgiveness. If the 24-week period is chosen, borrowers must maintain staffing levels for the entire period and only expenses up to December 31, 2020, can be included.

The forgiveness timeline starts when you file a completed application. Once the application is deemed complete, the Bank has up to 60 days to respond and file with the SBA. The SBA then has 90 days to respond. 

Expenses: While the date to include qualifying expenses such as salary and wages, employee availability, and business activity has been extended to December 31, 2020, borrowers can file earlier and are encouraged to do so if they achieve their maximum forgiveness.

We encourage you to review information from the following resources:
 
SBA Website - www.sba.gov
FAQ Section on the SBA Website - https://www.sba.gov/document/support--faq-lenders-borrowers
U.S. Department of the Treasury -https://home.treasury.gov/policy-issues/cares/assistance-for-small-businesses 
 
We also urge you to continue to consult with your tax advisor and attorney as you navigate through the PPP process.
 
We note that on July 6, 2020, the SBA and the Treasury Department posted the complete database of all PPP loans on the SBA’s website. For loans above $150,000, the information available to the public includes company name, address, a range of the loan amount, NAICS codes, demographic information, loan date, number of employees, and congressional district. For loans under $150,000, the name and address were omitted. This post was made by the U.S. Government, however, we want you to be aware of it.

 

 


So you have a PPP loan – What is next?

This page has been updated for recent changes due to the enactment of the Payroll Protection Program Flexibility Act of 2020 (PPPFA) on June 5, 2020, and will step through what you need to know to manage your loan and to obtain forgiveness.

The Basics

If you have just obtained a loan from Community Bank under the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), as amended by the PPPFA, below are some things you need to know.  

First, you should know the structure of the loan and what your obligations are. Second, you need to decide if you want the loan forgiven. Finally, if you decide all or a part of the loan cannot be forgiven, you will need to plan to make principal and interest payments to pay off the loan per your loan agreement. 

We have created a program that will make it easier for you to file for forgiveness and will walk you carefully through each step. If you have received a PPP loan from Community Bank, a link to electronically file your Forgiveness application will be emailed to you during mid-July. This will be your first opportunity to file for Forgiveness as you will need your Employer’s Quarterly Federal Tax Return (Form 941) filing to complete the application.   

The Structure of Your PPP Loan

All PPP loans have the same structure. They are as follows:

Term: The term of the original PPP loan is for two years with the ability to have all or some of the loan forgiven sooner. If you are not eligible for forgiveness, should you have continued hardship, it may be possible to extend the maturity date to allow for more payment flexibility.  For all PPP loans originated after June 5,2020, the maturity will be five years.

Payments and Rate: After the Deferral Period, if the loan is not forgiven, you will pay monthly principal and interest according to your note. The interest rate for all loans is set by the SBA at 1.00% per annum.

Deferral Period: All payments on the loan are deferred until the date on which the amount of forgiveness is approved by the SBA, provided that the borrower applies for forgiveness within ten months of the last day of the Covered Period. For borrowers that do not apply within ten months of the end of the Covered period, principal and interest will start to be due immediately.

Use of Proceeds: Proceeds under PPP loans can be used for payroll costs and benefit expenses plus interest on mortgage loans, rent and utilities as long as these obligations were in force prior to February 15th, 2020.

Early payoffs: You can pay off your loan at any time, without notice and without penalty.

What You Can Use PPP Funds for

While you can use the proceeds of the PPP loan for a wide range of expenses, if you want to obtain forgiveness, you are restricted in what you can use your PPP Loan for.

Remember that the loan amount was based on 2.5 times your average monthly payroll from 2019. However, you can USE these funds for the following purposes and still get all or a portion of your loan forgiven:

How to Have Your Loan Forgiven

The single largest advantage of the PPP program is the ability to have your loan forgiven so you are not obligated to make interest or principal payments. This will require following the rules of the Program and providing good records proving that you have followed those rules.

To have your loan forgiven either in total or in part, you must meet the following rules:

  1. ”Covered Period”: Starting from the day you received the funds of the loan from Community Bank (not when you electronically signed the agreement), borrowers that received their loans prior to June 5, 2020, can either elect that they will use the funds to maintain or restore hiring over an eight-week period or a 24 week period. The advantage of the eight-week period is that it allows borrowers to receive their forgiveness faster while the 24-week period allows for a longer time to achieve forgiveness. If the 24-week period is chosen, borrowers must maintain staffing levels for the entire period and only expenses up to December 31, 2020, can be included.  
  2. 60% to Payroll: At least 60% of your loan proceeds must be used to pay for payroll costs. Payments to independent contractors CANNOT be included in your payroll cost. You can use the remaining 40% of the loan proceeds to pay eligible expenses such as mortgage interest, rent, and utilities.
  3. Headcount: The most important part of forgiveness is to maintain your staffing levels. To understand how much you need to spend on payroll to achieve forgiveness, calculate the average number of full-time equivalent (FTE) employees by using the following calculation:
    1. Calculate the average number of employees during the Covered Period (Either the eight- or 24-week period) following the date at which you obtained your loan proceeds. Call this “Base Amount”
    2. Calculate the number of FTE employees you had between February 15, 2019, and June 30, 2019. Call this “Option 1.”
    3. Calculate the number of FTE employees you had between January 1, 2020, and February 29, 2020. Call this “Option 2.”

Take the Base Amount and divide by Option 1 then do the same by dividing by Option 2. Take the largest number between your Option 1 and Option 2 calculation. Also note that if you are a seasonal employer, you must use Option 1. Note that borrowers can adjust option for FTE safe harbor exemptions (see below).

  1. Salary/Wage Amount: For every employee that did not make more than $100,000 of annualized pay for 2019, you must maintain 75% of the pay received during the eight-week test period compared to the most recent quarter they were employed. If pay was reduced below 75% compared to the quarter prior to the eight-week test period, then forgiveness will be reduced by that difference. For example, if you reduced pay by 50%, then 75% - 50% equals a reduction of forgiveness by 25%.
  2. Rehiring: If you furloughed, laid off or terminated staff prior to the eight-week test period, you can hire them back on prior to June 30th, 2020 to still qualify for all or a portion of forgiveness. Further, if you reduced salary below the 75% level, you can also reinstate any pay below that level.  If the employee rejects your re-instatement offer, borrowers may be allowed to exclude this employee when calculating forgiveness. To qualify for this exemption, you must:
    1.  Make a written offer to rehire in good faith;
    2. Have offered to rehire for the same salary/wage and the number of hours as before they were furloughed or laid off; and,
    3. Receive a rejection by the former employee in writing.
  3. Other “Safe Harbor” Employee Exemptions: In addition to the above, borrowers can also qualify for an exemption for the sake of payroll calculation if an employee was fired for cause, voluntarily resigned or voluntarily requested a reduction in his or her hours. Borrowers may also be required to demonstrate that they were unable to hire similarly qualified employees for unfilled positions, or document that due to safety requirements, borrowers were unable to return to normal operating levels. It should also be noted that any employee who rejects an offer for re-employment may no longer be eligible for continued unemployment benefits.

The Forgiveness EZ Form

 On June 16, 2020, the SBA issued a simplified PPP Loan Forgiveness Application called the 3508EZ Form. This “EZ Form” is designed to reduce the required calculations for those that qualify. To qualify, borrowers must:

  1. be self-employed AND have no other employees; OR
  2. NOT have reduced salaries or wages of their employees by more than 25%, and must not have reduced the number of hours of their employees; OR
  3. have suffered a reduction of business activity as a result of health directives related to the COVID-19 pandemic and did not reduce salaries or wages of employees by more than 25%.

If you, a borrower, do not qualify under one of the three criteria, you must use the standard Forgiveness form called the “3508 Form”.

The EZ Form will be electronically available to you shortly in our electronic portal.  However, if you want to see the current form and instructions, please go here:

https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf

https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf

 

The Forgiveness Application

We will have this form online in our digital forgiveness process, but you can download the application below to get a sense of what will be required. To be clear, Community Bank PPP borrowers WILL NOT be submitting this form by email or sending it to their bankers but will be completing a digital application when the regulation and guidance is finalized.

Click below to download the application and instructions. [Rework to include the below]

https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-Instructions.pdf

https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508.pdf

All Community Bank PPP Borrowers will have to verify and/or input some critical pieces of information such as the Loan Number, your final loan amount, and exact form of your business name in order to complete the Forgiveness application.

The Documents You Will Need for Forgiveness

Once our Forgiveness portal is open, you will need to upload documents verifying the number of full-time equivalent employees on payroll and their pay rates, for the periods used to verify you met the staffing and pay requirements. These documents can be one or more of the following:

 

If these documents are not in digital form, please take the time soon to scan these and get them ready for upload using an Adobe PDF, JPEG or PNG file format. Please note that you can take a high-quality picture of the document and then upload the photo.

 

Documents that Borrower Must Maintain but Are Not Required to Upload

The following documents should be kept for six years after the loan is forgiven or repaid in the event the Office of the Inspector General, Bank, SBA, IRS or other entity needs to review:

Compensation: Documentation (payroll records, staffing schedules, etc.) supporting the certification that annual salaries or hourly wages were not reduced by more than 25 percent during the Covered Period or the Alternative Payroll Covered Period relative to the period between January 1, 2020 and March 31, 2020.

FTE and Hours: If applicable, documentation supporting that the Borrower did not reduce the number of employees or the average paid hours of employees between January 1, 2020 and the end of the Covered Period (other than any reductions that arose from an inability to rehire individuals who were employees on February 15, 2020, if the Borrower was unable to hire similarly qualified employees for unfilled positions on or before December 31, 2020). This documentation must include payroll records that separately list each employee and show the amounts paid to each employee between January 1, 2020 and the end of the Covered Period.

Safe Harbor Employees: Documentation regarding any job offers and refusals, refusals to accept restoration of reductions in hours, firings for cause, voluntary resignations, written requests by any employee for reductions in work schedule, and any inability to hire similarly qualified employees for unfilled positions on or before December 31, 2020.

Operations: If applicable, documentation supporting that the Borrower was unable to operate between February 15, 2020 and the end of the Covered Period at the same level of business activity 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 of sanitation, social distancing, or any other work or customer safety requirement related to COVID-19. This documentation must include copies of the applicable requirements for each borrower location and relevant borrower financial records.

Other Supporting Materials: Borrowers should retain all worksheets, calculations, schedule or other records relating to the Borrower’s PPP loan, including documentation submitted with its PPP loan application, documentation supporting the Borrower’s certifications as to the necessity of the loan request and its eligibility for a PPP loan, documentation necessary to support the Borrower’s loan forgiveness application, and documentation demonstrating the Borrower’s material compliance with PPP requirements.

Loan Forgiveness Details and Limits

Self-Employed: Borrowers that are self-employed are entitled to use PPP funds to replace lost compensation due to the impacts of COVID-19. It is important to note, however, that borrowers are not entitled to use the full amount of the loan to replace pay. Only eight-weeks’ worth of a borrower’s 2019 net profit is eligible for forgiveness. Borrowers with mortgage interest, rent, or utilities expenses must have claimed (or be entitled to claim) these expenses as a deduction on their 2019 Form 1040 Schedule C in order for these expenses to be eligible for forgiveness.

Partnerships: Borrowers that are general partners in a partnership are eligible to claim the same level of compensation as they were making as partner compensation when they applied for the PPP. Partner compensation is capped at the 2019 Schedule K-1 net earnings from self-employment (reduced by claimed section 179 expense deduction, unreimbursed partnership expenses, and depletion from oil and gas properties), all multiplied by 0.9235.

Non-Payroll Expenses: All eligible non-payroll expenses must be paid during the Covered Period (not the Alternative Payroll Covered Period) OR incurred and paid on or before the next regular billing date, even if the billing date is after the Covered Period.

$100,000 Limit: Be aware that if you pay any single employee (including yourself) more than $3,846.15 per 2-week pay period (an annualized $100,000 per year) that amount will not count towards the loan forgiveness. At time of this posting, the SBA has been vague about the exact way ineligible pay is deducted from the forgiveness amount, so, for best results, be conservative.

EIDL Grant Recipients

If you received a grant up to $10,000 from the Economic Injury Disaster Loan (EIDL) program, these proceeds will be deducted from your PPP forgiveness amount. For example, if you have a $10,000 EIDL grant and a $100,000 PPP loan in which you qualify for 100% forgiveness, then your forgiveness amount will be $90,000 and you will then be required to pay off the $10,000 remaining over the term of the loan.

If Your Loan is NOT Forgiven

Your loan may not be approved for forgiveness or you may decide not to ask for forgiveness because you do not meet the forgiveness requirements. In this case, you will begin to make your principal and interest payments after the Deferral Period until the loan is extinguished.

 

Ineligible Borrowers

The SBA has stated they will be reviewing ALL loans above $2 million and will sample the rest.  Thus, it is highly recommended if you do NOT meet the PPP requirements that you contact Bank to pay off your loan immediately. While not an exhaustive list, borrowers that meet any of the following criteria are those that may not qualify for PPP loans and should consult with their legal and financial professionals to consider repaying their PPP loan. For further information, consult 13 CFR 120.110.

FAQs

Q:  Will SBA review individual PPP loan files?

A: Yes. The SBA has stated that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.

Q: What are the main changes to the Paycheck Protection Program Flexibility Act (PPPFA) enacted on June 5, 2020?

A: The PPPFA provides the borrower with greater flexibility to obtain maximum forgiveness. Before and after changes can be seen in this table:

 

Item

Before (PPP)

After (PPPFA)

Payroll

75% of PPP must be spent on payroll

60% of PPP must be spent on payroll

Time Period to use funds (Covered Period)

8 weeks

8 or 24 weeks

  • Borrowers must choose either period but must maintain staffing and salary levels for whatever period they choose. Once the Covered Period has ended, borrowers can run their business without impact to the Forgiveness amount.

Rehire Requirements (for salary to count toward requirements)

Workers must be rehired by June 30, 2020

Workers must be rehired by December 31, 2020

Exceptions:

  • Unable to rehire individual who was an employee on or before 2/15/2020
  • Able to demonstrate inability to hire similarly qualified employees on or before 12/31/2020
  • Able to demonstrate inability to return to same level of business activity as before 2/15/2020

Repayment Term

2 years (at 1% interest)

 

2 or 5 years (at 1% interest)

  • PPPFA Loans made after June 5, 2020, will have a 5-year maturity.
  • The unforgiven amount from a loan done before June 5, 2020, can be changed from 2 to 5-year maturity with CenterState’s approval.

Deferment of payroll taxes

No deferment of taxes on forgivable portion of the loan

 

  • PPPFA allows borrowers to defer the employer portion of payroll taxes until December 21, 2020.

 

SBA loan audits

SBA can audit any loan at their discretion

No change

Maximum loan amount

2.5x borrower’s 1-month average payroll cost

No change

Number of PPP loans

One PPP loan per borrower

No change

Salary calculation for loan forgiveness

Payroll calculator in the loan application

No change

 

Q: If bills are due outside the 24-week covered period, can these be claimed for forgiveness?

Yes. As long as a borrower pays eligible expenses on the next regular billing date, these non-payroll expenses (utilities, rent, mortgage interest) can be claimed for forgiveness, prorated to the end of the Covered Period.

 

Q: I do I get my loan forgiven if I am self-employed?

A: You are entitled to use the PPP loan to replace lost compensation due to the impacts of COVID-19. However, you are not entitled to use the full amount to replace pay. Eight weeks’ worth of your 2019 net profit will be eligible for forgiveness.

If you have mortgage interest, rent, or utilities expenses, you must have claimed or be entitled to claim a deduction for those expenses on your 2019 Form 1040 Schedule C in order to claim them for forgiveness.

For example, if you worked in an office space in 2019 and did not have a home office, you could not have claimed a deduction on your home mortgage interest. Even if you are currently working at home now, you are not eligible to claim home mortgage interest payments for forgiveness.

 

Q: Do you count all employees or only full-time equivalent employees?

A: For purposes of loan eligibility, the CARES Act defines the term employee to include “individuals employed on a full-time, part-time, or other basis.” Borrowers must therefore calculate the total number of employees, including part-time employees, when determining their employee headcount for purposes of the eligibility threshold. For example, if a borrower has 200 full-time employees and 50 part-time employees each working 10 hours per week, the borrower has a total of 250 employees.

By contrast, for purposes of loan forgiveness, PPP uses the standard of “full-time equivalent employees” to determine the extent to which the loan forgiveness amount will be reduced in the event of workforce reductions.

 

Q: How is eight weeks of net profit from 2019 calculated?

A: Your net profit that was reported on your Form 1040 Schedule C is multiplied by 8/52.

 

Q: Can I prepay my rent or mortgage using PPP proceeds?

A: No, prepayment of principal is not an allowed use of the PPP and is not eligible for forgiveness.

 

Q: What counts as mortgage interest?

A: Any interest paid on mortgage on property used for business purposes is an eligible expense that the PPP can be used for and qualifies for forgiveness.

Acceptable examples include: Interest on a loan to finance the real estate for your primary place of business; auto loan interest on a car you own to make business deliveries; or, mortgage interest on a warehouse you own to store inventory.

 

Q: How and when should income be recognized if the loan is forgiven?

A: Check with your accounting professionals, but accounting standards clearly say that you only derecognize debt when you are legally released from the obligation. Based on this guidance, generally accepted accounting principles (GAAP) does not allow recording this income until you have received documentation from CenterState that the loan is forgiven. At that point, you would debit the loan account for the amount forgiven and credit an income account for that same amount.

 

Q: If my loan is not forgiven, how much is my monthly payment?

A: Any loan principal not forgiven will carry an interest rate at 1% for the two-year standard maturity (which could be eligible for extension to five years) for loans made prior to June 5, 2020, and for the five-year period for any loans made after June 5, 2020. Please keep in mind that no payments are due until after the Deferral Period which starts after a forgiven decision is rendered by the SBA.

 

Q: What happens if my business has already laid-off employees?

A: Borrowers that can EITHER re-hire their workforce or hire and replace those workers AND maintain at least 75% of the same level of compensation as payroll calculation Option 1 or Option 2 as outlined above, can be eligible for forgiveness.

 

Q: If I took a PPP loan, can I still file for employee retention tax credits?

A: No. Unfortunately, if you took a PPP loan you are no longer eligible for employee retention tax credit which is up to $5,000 per employee to be received on your quarterly 941 tax form. If you still want to maintain those credits, consult with your financial professionals and consider repaying the PPP loan immediately. For more information, go here: https://www.irs.gov/newsroom/covid-19-related-employee-retention-credits-overview

Q: Can I deduct operating expenses from my taxes that are also claimed as a forgiven amount?

A: No. Check with your tax professionals but per the SBA, any expenses that a borrower claims for forgiveness under the PPP cannot then be deducted from the borrower’s business expenses. A forgivable PPP loan is already tax-free, so the IRS wants to prevent “double-dipping” (i.e., benefiting from both the IRS and SBA).

Q: Can an EIDL loan be refinanced with PPP loan proceeds?

A: This depends on the timing of the EIDL loan. The answer is no when the EIDL loan was received prior to January 31, 2020, or after April 3, 2020. You may use the proceed from a PPP loan to payoff your EIDL loan if you received the EIDL loan between January 31st and April 3rd of 2020 AND you used the EIDL loan for purposes other than payroll costs. You MUST payoff your EIDL loan from PPP proceeds where you received your EIDL loan between January 31st and April 3rd of 2020 AND you used the EIDL proceeds to pay payroll costs. Please note that the amount of the EIDL loan to be refinanced does not include the amount of any EIDL “Advance” (also referred to as an EIDL “grant”) received by the PPP Borrower, because the EIDL advance does not need to be repaid. To payoff your EIDL loan, you can go here: https://pay.gov/public/form/start/3723407 and for more specific information you can call the SBA’s EIDL hotline at 800-736-6048.


New Paycheck Protection Program legislation passed June 3, 2020

 

The U.S. Senate passed the House version of Paycheck Protection Program (PPP) legislation Wednesday night, tripling the time allotted for small businesses and other PPP loan recipients to spend the funds and still qualify for forgiveness of the loans.

The bill passed in a unanimous voice vote hours after Wisconsin Sen. Ron Johnson initially blocked it. Among the key provisions is a change in the threshold for the amount of PPP funds required to be spent on payroll costs to qualify for forgiveness to 60% of the loan amount. 

The Senate approval sends the House bill, called the Paycheck Protection Flexibility Act, to President Donald Trump, who is expected to sign it.

The vote had to be unanimous because the Senate is not officially in session. That meant that any senator could force the matter to be delayed until the Senate returned to Washington with enough members for a quorum and a vote.

Leaders from both parties in the Senate pushed to pass the legislation on Wednesday as the clock on the initial eight-week window recently expired for the first recipients of PPP loans. Johnson dropped his objections after Senate leader Mitch McConnell agreed to add a letter to the Congressional Record clarifying that June 30 remains the deadline for applying to receive a PPP loan. The bill moves the June 30 deadline for spending the PPP funds to Dec. 31 to accommodate the new 24-week window.

Following is a summary of the legislation’s main points compiled by the AICPA: 

The PPP in brief

The PPP launched in early April with $349 billion in funding that was exhausted in less than two weeks. Congress provided an additional $310 billion in funding in an April 21 vote, but demand for the program soon waned due to controversies over publicly traded companies and other large enterprises being awarded loans. Concerns about the attainability of loan forgiveness under the program’s rules also contributed to small businesses and other eligible entities casting a wary eye to the program.

Congress established the PPP to provide relief to small businesses during the coronavirus pandemic as part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. The legislation authorized Treasury to use the SBA’s 7(a) small business lending program to fund loans of up to $10 million per borrower that qualifying businesses could spend to cover payroll, mortgage interest, rent, and utilities.

PPP funds are available to small businesses that were in operation on Feb. 15 with 500 or fewer employees, including tax-exempt not-for-profits, veterans’ organizations, Tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees also can apply for loans in certain situations.

 


Got a PPP loan? Here's how to make sure you get loan forgiveness 

By Chelsea Diana  – Reporter, Albany Business Review 
Apr 23, 2020, 


More than 69,000 Pennsylvania businesses received Paycheck Protection Program loans collectively worth $15.7 billion during the first round of funding.

And most of that money could be forgiven under the terms of the loans if the recipients follow certain rules over the next eight weeks.

Getting that forgiveness will be critical for many businesses as they try to stay afloat through the coronavirus pandemic. 

The PPP offers companies and nonprofits with fewer than 500 workers a 1% interest loan to cover two months of payroll and other expenses. The program has a $10 million limit per customer. Borrowers must use the money for payroll costs, mortgage interest, rent and utilities payments over the eight weeks after getting the loan. About 75% of that money must be used to cover payroll costs. 

Businesses that do not maintain staff and payroll will owe money back. They have until June 30 to restore full-time employment and salary levels and will have to show the receipts to their lender.

James Lozano — a partner at BST & Co. and leader of the CFO for Hire division — said he's focused on helping companies get the most out of the PPP, including how they should track their expenses during this time. 

"We've been talking with clients about preparing for forgiveness. It's going to come upon you very quickly here," Lozano said. "You got the money on Thursday and that clock currently starts ticking right away for that eight-week period."

Here is Lozano's best advice for businesses about how to get that loan forgiveness. 

Lay out a plan: Businesses should figure out a plan for how to spend the money. Lozano suggested writing it out on an eight-week calendar to help make sure a business can spend all the money it can within that period.

Set up a new bank account: When companies go for forgiveness, Lozano thinks it would be a good idea to segregate this money into a separate bank account. 

"Don’t co-mingle it with your operating funds," he said. "When you’re ready to use it, transfer it into operating account, document what the transfer was for and it will give you a nice audit trail to say this is what we spent it on."

Create a spreadsheet: Lozano recommends creating a log or spreadsheet to track each time a business spends money on the allowable expenses. Businesses should date what it was for, the amount and make a copy of whatever documentation proves the expense.

"Everybody's got an accounting system, but to go back and dig through your general ledger if you’re continuing to operate will make it more difficult and complex," Lozano said. "Log it on a spreadsheet, you won't have that many items on an eight-week period."

Make copies of all important documents: He suggests making a copy of checks and invoices and keeping it in a "forgiveness folder." 

"So when you get done with that eight-week period, you have all the information you need to hand in for forgiveness and you're not trying to scramble back through a file cabinet after June 30 to figure out what to make copies of," Lozano said. 

Work with your payroll company: If a company's payroll doesn’t cut off specifically at the end of the eight week period, Lozano suggests asking the payroll company to create a special payroll run that ends with the eight weeks. For example, instead of having a payroll period that keeps going when the eight weeks end, it can cut off the last day payroll is eligible. 

"It will cost people a couple dollars for an extra payroll run, but it is worth it," Lozano said. "Or ask them for a specific report that shows what payroll through a specific date is."
 


Economic Impact Payment Information Center

Information from the IRS regarding Economic Impact Payments


Letter from Barron P. "Pat" McCune, Jr. to our valued customers

April 2, 2020

To our valued customers,

Community Bank was founded on the principle of “Neighbor helping Neighbor,” this founding principle still holds true today, 119 years later.  In these trying times Community Bank will be there to work with our employees, customers and the many communities we serve.

Throughout our history Community Bank has helped customers safeguard their financial health during periods of crisis and market volatility.  We have endured as an institution by relying on the experience of our leadership team and the dedication of our employees.

As we continue to understand and respond to the Coronavirus our primary focus is on your safety and health.  We are following the guidelines set forth by the CDC and other government health officials to limit personal interaction for our employees and our customers.

While your safety and health are our priority, we remain open for business and ready to serve your needs.  You can visit one of our branches through the drive-up windows, utilize our ATMs or online and mobile banking.  If you need additional assistance with your personal and business financial needs, our bankers are available and committed to providing you with services now and in the future.  For the latest update on our customer assistance relief program, please go to our COVID-19 page on our website (www.communitybank.tv) or contact your local branch office or customer service at 1-888-223-8099.

We know these are troubling times, but we are confident that together we will persevere as we have done for the past 119 years. 

Thank you for choosing Community Bank!  We appreciate your business!

Sincerely,

Barron P. “Pat” McCune, Jr.

President and Chief Executive Officer


Notice of change of Community Bank branch hours effective 3-30-2020

New Update Effective 3-30-2020

While Coronavirus (COVID-19) continues to escalate, Community Bank continues to take steps to protect both employees and customers.

Effective Wednesday April 1, 2020 we will be modifying our branch hours as listed below:

Monday-Friday 8:30* a.m. to 4:00 p.m.

8:30 a.m. to 9:30 a.m. RESERVED time slot for the elderly and higher risk customers

Saturday CLOSED

Please remember that at this time, our branches are open for drive-up services only.  Lobby access is by appointment only.

ATMs are open!!  For a limited time, Community Bank is WAIVING its $1.50 foreign ATM usage fee!!  This gives you the confidence to use any ATM that is convenient for you without having to worry about paying a fee.  (Bank owned ATM surcharge may apply).        

Your Community Bank ATM/Debit Mastercard is set with higher cash withdrawal and point of sale limits to sustain you through these times. 

If you are interested in applying for a loan, you can do so by visiting our website at www.communitybank.tv.  If you’ve already applied and need to drop off information to your lender, you can do so by way of the drive-up or making an appointment with your lender. 

Be sure to call your local office ahead of time if you need a more specialized transaction (i.e. new account, change signers, cashier’s check or large deposit/withdrawal or if you have other special needs). In these cases, you can schedule an appointment with our branch staff to enter the branch so that you can still receive the same level of service you are accustomed to.

Online and Mobile Banking is great for viewing account history, paying bills, paying other people, depositing checks, and transferring money.

If you are a Community Bank loan customer and you are experiencing financial hardship due to the pandemic, it is very important that you contact your local branch or call the customer service number for assistance.

Always remember that Community Bank is here for you, just as we have always been for 119 years.

Customer service representatives are available to assist at your local branch or by calling 1-888-223-8099.

*Woodsdale and Warwood (both in the Ohio Valley) will open at 8:00 a.m. and 8:15 a.m., respectively.


Coronavirus Resources for Pennsylvania - US Senator Bob Casey - updated 4-8-2020

Resources to help you, your family and your community navigate the challenges of this difficult time.  


FOR CONSUMERS:

Consumer Loan Assistance

 

Credit Card Assistance


BUSINESS RESOURCES:

 

COVID-19 Loan Programs Quick Guide

Loan Programs Quick Guide

 

U.S. Small Business Administration (SBA) Disaster Assistance

The SBA offers designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).

Please check the SBA website for updated information:

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

Commonwealth of Pennsylvania
Department of Community & Economic Development (DCED)

Pennsylvania Information Clearinghouse:

https://www.pa.gov/guides/responding-to-covid-19/

DCED Business Resources for COVID-19 Outbreak:

https://dced.pa.gov/resources/

Pennsylvania Industrial Development Authority (PIDA):

ON March 25, 2020, Governor Wolf officially announced the PIDA COVID-19 Working Capital Access (CWCA) Program.

The COVID-19 Working Capital Access (CWCA) Program is administered by the Pennsylvania Industrial Development Authority (PIDA) and provides critical working capital financing to small businesses located within the Commonwealth that are adversely impacted by the COVID-19 outbreak.

Visit the CWCA Program landing page to review information about eligible businesses and uses, funding limits and terms, and more information on how to apply.

All CWCA loan applications must be submitted through a Certified Economic Development Organization (CEDO). For the list of CEDOs in Pennsylvania, please refer to the CEDO webpage.

For the latest updates from the federal government on the Coronavirus (Covid 19) please visit www.coronavirus.gov

Other Resources of Information

Small Business Development Center – University of Pittsburgh

SBDC COVID-19 Resource Page:

http://entrepreneur.pitt.edu/business-resources-covid-19/

Helpful COVID-19 Resources & Relief for Small Businesses webinar available at SBDC Website: - Topics include Pitt SBDC availability and resources | SBA Disaster Loan program and process | Working with your bank to discuss aid and relief | Families First Coronavirus Response Act | Tax implications resulting from business impact

SBDC FINANCIAL SUPPORT RESOURCES:

The Hebrew Free Loan Association Pittsburgh

The Coronavirus Financial Bridge Loan Program provides interest-free loans on a nonsectarian basis for up to $5,000 to residents of Allegheny, Beaver, Butler, Westmoreland, Washington, and Armstrong counties who are facing financial challenges caused by the Coronavirus/COVID-19 outbreak. These loans are intended to address: Lost wages due to being unable to go to work, Childcare costs due to school closures, Small business losses, Canceled study abroad programs, and/or Related medical costs

Loan applicants must provide written substantiation of these costs -http://hflapgh.org/coronavirusloan/

Allegheny Conference on Community Development

COVID-19 Resource Page: https://www.alleghenyconference.org/covid-19/

ACCD Survey for Washington County Businesses: https://www.surveymonkey.com/r/ACCD-Washington

U.S. Federal Government Resources:

The US Government’s most up to date information and news on COVID-19: https://www.coronavirus.gov/

Occupational Safety and Health
Administration (OSHA) Guidance

OSHA COVID-19 Resource Page:

https://www.osha.gov/SLTC/covid-19/

OSHA Guidance on Preparing Workplaces for COVID-19

https://www.osha.gov/Publications/OSHA3990.pdf

United States Chamber of Commerce Resources

US Chamber Foundation Resource Page:

https://www.uschamberfoundation.org/coronavirus

U.S. Chamber Disaster Help Desk:
https://www.uschamberfoundation.org/disaster-help-desk-business

US Chamber of Commerce Small Business Guide:

https://www.uschamber.com/co/small-business-coronavirus

Pennsylvania Chamber of Business & Industry

PA Chamber COVID-19 Business Resources:

https://www.pachamber.org/coronavirus/

Exchange Underwriters a Community Bank Company

https://www.communitybank.tv/notice.htm?https://www.exchangeunderwriters.com/coronavirus-resources/

PUBLIC HEALTH RESOURCES:

The Centers for Disease Control
and Prevention (CDC)

The CDC has a variety of resources that explain the outbreak of the coronavirus and how to best get your business prepared:

Contact information: CDC: 800-232-4636  www,cdc.gov

The PA Department of Health (DOH)

DOH COVID-19 Resource Page - provides up-to-date information and resources for Pennsylvanians and a live daily briefing:  https://www.health.pa.gov/topics/disease/coronavirus/Pages/Coronavirus.aspx

The West WV Department of Health (DOH)

DOH COVID-19 Resource Page – provides up-to-date information for resources for West Virginians: https://dhhr.wv.gov/COVID-19

The Ohio Department of Health (DOH)

DOH COVID-19 Resource page – provides up-to-date information for resources for Ohioans: https://odh.ohio.gov/wps/portal/gov/odh/know-our-programs/Novel-Coronavirus

 

The information provided on this website does not, and is not intended to, constitute legal or medical advice; all information, content, and links to material on this website are for general informational purposes only.

Information on this website may not constitute the most up-to-date information. This website contains links to third-party websites as a convenience to the reader, and those websites may contain inaccurate information.