SVB and Government Relief Programs Frequently Asked Questions

 
Supporting employees, clients and communities around the world
Updated 1/18/2021

Latest SBA Guidance

What is the latest guidance from the SBA on PPP loan forgiveness?

 
On December 27, 2020, new legislation was signed into law that includes $284 billion in new funds for the Paycheck Protection Program. SVB will participate in this second round of PPP.

The SBA restarted the Paycheck Protection Program on Monday, January 11 for community development financial institutions, minority depository institutions, certified development companies and microlender intermediaries ONLY. Lenders with under $1B in assets were able to offer PPP loans beginning on Friday, January 15. The program will open more widely to all lenders, including SVB, on Thursday, January 19.  

SVB is updating its digital PPP loan applications with the final SBA guidance before we open our application process. We are working quickly to open our application as soon as possible and help our clients access the PPP funds. We will notify clients via email and within Online Banking when our PPP loan application process is open. Clients applying for a first or second draw PPP loan must have a demand deposit account (DDA account) with SVB. If you do not have a DDA with SVB, please contact your Relationship Manager.


SVB will only accept and process applications for new and second draw PPP loans via our digital applications, which will allow for faster processing and direct access to the SBA’s systems via an integration.

PPP 2021

Is SVB participating in the next round of PPP (PPP 2021)?

 
Yes, SVB will participate.

Who is eligible for a first time (first draw) PPP loan under this new program?

 
To be eligible for a first time (first draw) PPP loan, amongst other criteria, companies must have:

  • 500 or fewer employees across all affiliated companies
  • Been in business on or before February 15, 2020

The maximum loan amount available to an eligible company is the lesser of 2.5x average monthly payroll or $10 million. The new law also provides that certain categories of companies will be excluded from the program, including publicly traded companies.

Who is eligible for a second draw PPP loan?

 
To be eligible for a second PPP loan, amongst other criteria, companies must have:

  • A demonstrable reduction in gross revenue of at least 25% (as defined by the SBA) for the borrower and its affiliated companies
  • 300 or fewer employees, including its affiliated companies
  • Used or will use, all funds from its first PPP loan prior to funding of the second PPP loan

The maximum loan amount is the lesser of 2.5X average monthly payroll (or 3.5x for borrowers in accommodation and food service sectors) or $2 million. The new law also provides that certain categories of companies will be barred from obtaining a second PPP loan including publicly traded companies, political lobbying firms, companies that were found to be ineligible for the first draw PPP loan, and companies that have a nexus to mainland China or Hong Kong.

Note, SVB is not accepting applications for increases for first draw PPP loans at this time.

How must companies prove a 25% revenue decline?

 
The SBA notes that companies may provide annual tax forms or quarterly income statements that show a reduction in gross receipts of 25% or greater in 2020 compared with 2019 in line with the following SBA guidelines:

a. For entities in business on/before first quarter 2019: Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019.

b. For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.

c. For entities not in business during the first, second and third quarters of 2019 but in operation during the fourth quarter of 2019, applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019. 

d. For entities not in business during 2019 but in operation on February 15, 2020, applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020. 


Gross receipts include all revenue in whatever form received or accrued (in accordance with the entity's accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Generally, receipts are considered "total income" (or in the case of a sole proprietorship "gross income") plus "cost of goods sold" and excludes net capital gains or losses as these terms are defined and reported on IRS tax return forms.

For additional details on the definition of gross receipts, please review Page 2 of the SBA PPP Application Form 2483-SD.

Is the eligibility and application different for loan requests under $150,000?

 
Companies applying for a second draw loan under $150,000 will still need to show a demonstrable reduction in revenue of at least 25%, but they are not required to submit supporting documentation with their application. However, they will need to provide documentation of the reduction when they apply for loan forgiveness.

I applied and received a PPP loan from another lender. Can I apply for a second draw with SVB?

 
Yes, you are welcome to apply with SVB. However, for ease and speed, we recommend applying for your second draw loan with the same lender from which you obtained your first PPP loan.

I have not yet applied or received forgiveness for the PPP loan I received in 2020. Can I still apply for a second draw loan?

 
Yes, you are welcome to apply for a PPP loan, regardless of the forgiveness status of your existing PPP loan. However, you must have used all the proceeds from your first PPP loan for eligible expenses prior to the funding of your second PPP loan. 

I see other lenders are accepting applications. When will SVB be open?

 
Only community development financial institutions, minority depository institutions, certified development companies and microlender intermediaries will be able to offer PPP loans to new borrowers on January 11 and 12. These institutions began to offer second draw loans to existing PPP borrowers on Wednesday, January 13. Lenders with less than $1B in assets began to offer PPP loans on Friday, January 15.

All other lenders, including SVB, will have access to the SBA portal on Tuesday, January 19.

SVB is updating our digital application with the final SBA guidance before we open our applications process. We are working quickly to open our application as soon as possible and help our clients access the PPP funds. We will notify clients via email and within Online Banking when our application process is open.

Can I download the new application from the SBA, fill it out and email it to SVB?

 
No. SVB will accept and process applications for new and second draw PPP loans solely via our digital application. This will allow for faster processing and direct access to the SBA’s systems through an integration. This will be faster for you in the long run.

How should borrowers prepare to apply?

 

If you plan to apply for a PPP loan with SVB for the first time, please confirm the Primary Administrator associated with your account in SVB Online Banking. This Primary Administrator will be assigned the PPP loan application task and be responsible for completing it once SVB's digital application is available. 

If you already have a PPP loan with SVB, the application task will be assigned to the Administrator who is assigned to your company’s PPP forgiveness application.

Please review the relevant applications available from the SBA; First Draw and Second Draw.

Borrowers may also begin compiling the following documents in preparation to complete the appropriate PPP loan application: 

  • Payroll: Borrowers can choose to use calendar year 2019 or calendar year 2020 payroll. Please note that the salary cap is still in place, which allows for a maximum $100,000/year cash compensation for any employee.

    • Payroll provider reports/statements for the selected year (preferred)

    • If you work with a Professional Employer Organization (PEO) and do not have IRS Form 941, please have your latest payroll report from the PEO that covers 12 months of payroll

    OR

    • IRS Form 941 for the four quarters of the selected year and state quarterly wage unemployment insurance tax reporting forms from each quarter. If you do not file an IRS form 941, please upload the annual IRS 944 filing from the selected year

  • Revenue Reduction (for Second Draw applications only): Annual tax forms or quarterly income statements that show a reduction in gross receipts of 25% or greater in 2020 compared with 2019 in line with the following SBA guidelines:

    a. For entities in business on/before first quarter 2019: Applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the same quarter of 2019.

    b. For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.

    c. For entities not in business during the first, second and third quarters of 2019 but in operation during the fourth quarter of 2019, applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019. 

    d. For entities not in business during 2019 but in operation on February 15, 2020, applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020. 

    Gross receipts include all revenue in whatever form received or accrued (in accordance with the entity's accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Generally, receipts are considered "total income" (or in the case of a sole proprietorship "gross income") plus "cost of goods sold" and excludes net capital gains or losses as these terms are defined and reported on IRS tax return forms.

    For additional details on the definition of gross receipts, please review Page 2 of the SBA PPP Application Form 2483-SD.

  • SBA Loan Number and Loan Amount (for Second Draw applications only): If you received a PPP loan in 2020 with another financial institution, you will need to provide your SBA loan number and loan amount.

Preparing for Forgiveness: 2020 PPP Loans

When can borrowers apply for PPP loan forgiveness of their 2020 PPP loan?

 
SVB is now accepting PPP forgiveness applications via SVB Online Banking. All borrowers with outstanding PPP loans have been sent an email with information on how to apply for forgiveness.

The PPP forgiveness application includes an SVB Online Banking digital application, an expense documentation guide, and on-demand training materials. Knowledgeable support teams are available to help you navigate the challenging SBA requirements.

Legislation signed into law in December 2020 will make it easier for current and future borrowers with loans of $150,000 or less to request forgiveness via a simplified form. We are awaiting guidance on this from the SBA. We will continue to accept forgiveness applications but encourage eligible borrowers to consider waiting until the new form is available.

We recommend reviewing SVB's PPP website for information on how to prepare for forgiveness.

What should PPP loan recipients do prior to applying for forgiveness of a 2020 PPP loan?

 
Borrowers should monitor SBA.gov for the latest guidance on loan forgiveness. SVB also recommends that you:

1. Determine which SBA form you will use.
Become familiar with the updated SBA PPP forgiveness application form (SBA Form 3508), the “EZ” forgiveness application form (SBA Form 3508EZ) for eligible borrowers and SBA Form 3508S for borrowers with PPP loans of $50,000 or less.

Loans between $50,000 and $150,000
Legislation signed into law in December 2020 will make it easier for current and future borrowers with loans of $150,000 or less to request forgiveness via a simplified form. We are awaiting guidance on this from the SBA. We will continue to accept forgiveness applications but encourage eligible borrowers to consider waiting until the new form is available.

SBA Form 3508EZ
In order to use the "EZ" forgiveness application (SBA Form 3508EZ), one of the following must apply to your business:

  • Sole Proprietor – You are self-employed, an independent contractor, or sole proprietor who had no employees at the time of your PPP loan application.
  • Employer – You have not reduced the number of employees at all since January 1, 2020 AND have not reduced salary/wages more than 25% during the Covered (or Alternative Payroll Covered) Period for employees earning less than $100k in 2019. 
  • COVID-Impact – You are not able to operate at the same level of business due to COVID-related requirements AND you have not reduced salary/wages more than 25% during the Covered (or Alternative Payroll Covered) Period for employees earning less than $100k in 2019.

If none of the preceding statement apply to your business, you will need to complete SBA Form 3058. If you are unsure, we recommend completing SBA Form 2058.

Note: If you are using the SBA Form 3508, complete the PPP Schedule A Worksheet before starting your online forgiveness application with SVB.

SBA Form 3508S
Borrowers of PPP loans of $50,000 or less may use SBA Form 3508S if the borrower and its affiliates, taken together have not received PPP loans totaling $2 million or more. Borrowers using the SBA Form 3508S do not have to provide detailed calculations of their requested forgiveness amounts and are exempt from reductions in forgiveness based on reductions in FTE employees or reductions in wages. Borrowers are required to submit documentation in connection with their loan forgiveness application, and will not be eligible to receive loan forgiveness without this documentation.

The forgiveness amount is dependent on the use of funds and supporting documents must be submitted as part of the application. For more information please visit SBA.gov.

2. Gather the required documentation.
The SBA requires documents supporting payroll expenses, non-payroll expenses, and FTE counts. SVB has developed a Documentation Guide to help borrowers identify and gather the necessary documents and prepare for forgiveness.

A full list of the SBA documentation, submission and retention requirements can be found on the PPP Forgiveness Application (SBA Form 3508) instructions, the SBA Form 3508EZ application instructions, and the SBA Form 3508S application instructions. In addition, each form’s application instructions lists the documents that each borrower much maintain but is not required to submit. These documents may be requested if the SBA selects your application for a detailed review.

We encourage our clients to provide Silicon Valley Bank with Professional Employer Organization (PEO) or payroll service company reports to evidence these items. In many cases, these providers are creating specialized reports that correspond to a client’s covered period.

3. Review SBA's Rules on Changes in Ownership 
On October 2, 2020, the SBA published an official procedural notice detailing the requirements for PPP borrowers who wish to make changes to their equity ownership.

Under this new guidance, PPP borrowers who wish to make any equity ownership change must notify SVB of all transactions. If you are considering any transaction which will change your equity ownership, please find instructions and a complete list of required information here.

Please note that while SVB will submit consent requests that require SBA approval in a timely manner, the SBA may take up to 60 days to respond.

4. Determine the best time to apply for forgiveness
Borrowers may apply for forgiveness at any time during the term of their PPP loan. As long as a borrower submits their loan forgiveness application within ten months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the SBA.

Borrowers may submit an application for forgiveness before the end of the 8-week or 24-week covered period, provided that:

  • The borrower has used all of the loan proceeds for which the borrower is requesting forgiveness; and
  • The borrower’s loan forgiveness application accounts for any salary reduction in excess of 25% for the full covered period. 

If you are requesting forgiveness prior to the end of your Covered Period, please note that payroll is capped at the equivalent of $100K annual salary per FTE ($15,385 for the 8-week period and $46,154 for the 24-week period). This amount should be prorated if you are requesting forgiveness prior to the end of your Covered Period. For example, $30,770 if applying after 16 weeks ($100,000/52 * 16 weeks).

Loans between $50,000 and $150,000
Legislation signed into law in December 2020 will make it easier for current and future borrowers with loans of $150,000 or less to request forgiveness via a simplified form. We are awaiting guidance on this from the SBA. We will continue to accept forgiveness applications but encourage eligible borrowers to consider waiting until the new form is available.

5. Access your PPP Loan Forgiveness Application
All borrowers with outstanding PPP loans have been sent an email with information on how to apply for forgiveness via SVB Online Banking.

If you would like to re-assign the task of applying for forgiveness to a different user in SVB Online Banking, you can do so. Simply select “Re-Assign Task” in the PPP Forgiveness Application in SVB Online Banking. If the user you would like to assign the application to is not listed, update the user permissions to provide access to the PPP loan.

For more information, please visit our FAQ page.

Important: It is your obligation, as the borrower, to make sure you understand the SBA's rules and that your application is true, complete and correct, and complies with the SBA’s requirements for forgiveness. Loan forgiveness is not automatic and must be requested through Silicon Valley Bank. Other eligibility requirements may apply.

Will Silicon Valley Bank provide a forgiveness calculator to help clients with their calculations?

 
SVB is not providing a forgiveness calculator. Once open, the online application will perform the basic arithmetic required to calculate the eligible forgiveness amount based on inputted covered expenses.

How should borrowers complete full-time equivalent (FTE) calculations?

 
Unfortunately, SVB cannot provide guidance on how to complete FTE calculations. If you have a payroll provider, many of them are providing a PPP specific report to help in this manner. Additionally, the SBA has provided guidance on calculation of FTE, which can be found in their application/instructions.

The reduction calculation would be the difference between the Average FTEs for your Covered Period compared to the Average FTEs in your reference period. For non-seasonal employers, the two reference periods that can be used for comparison are: 1) February 15 to June 30, 2019 or 2) January 1 to February 29, 2020.

In the case of a seasonal employer, the reference periods that can be used for comparison are between February 15 to June 30, 2019; between January 1 and February 29, 2020; or any consecutive 12-week period between May 1, 2019 and September 15, 2019.

Can the primary admin reassign the task of applying for forgiveness to a different user in SVB Online Banking?

 
Yes, admins are able to reassign the application to a different user at the company by selecting “Re-Assign Task” in the application. If the user you would like to assign the application to for completion is not listed, update the user permissions to provide access to the PPP loan.

What other resources should borrowers consult to help with the forgiveness application for 2020 PPP loans?

 
Silicon Valley Bank recommends borrowers refer to the SBA.gov and Treasury.gov for additional information, as forms and guidance related to the Paycheck Protection Program continue to rapidly evolve and are subject to frequent changes. At a minimum, please make sure you have reviewed the latest information prior to submitting a forgiveness application. It is your obligation, as the borrower, to make sure you understand the SBA’s rules and that your application is true, complete and correct, and complies with the SBA’s requirements for forgiveness. Loan forgiveness is not automatic and must be requested through Silicon Valley Bank. Other eligibility requirements may apply.

Does a borrower need to inform SVB and/or the SBA if it is entering into or considering a change in ownership?

 
On October 2, 2020, the SBA published an official procedural notice detailing the requirements for PPP borrowers who wish to make changes to their equity ownership.

Under this new guidance, PPP borrowers who wish to make any equity ownership change must notify SVB of all transactions. If you are considering any transaction which will change your equity ownership, please find instructions and a complete list of required information here.

Please note that while SVB will submit consent requests that require SBA approval in a timely manner, the SBA may take up to 60 days to respond.

Applying for Forgiveness: 2020 PPP Loans

Is SVB and the SBA currently accepting applications for forgiveness for 2020 PPP loans?

 
We are accepting PPP forgiveness applications via SVB Online Banking. All borrowers with outstanding PPP loans have been sent an email with information on how to apply for forgiveness.

Legislation signed into law in December 2020 will make it easier for current and future borrowers with loans of $150,000 or less to request forgiveness via a simplified form. We are awaiting guidance on this from the SBA. We will continue to accept forgiveness applications but encourage eligible borrowers to consider waiting until the new form is available.

The primary admin is not an authorized signor, how can the primary admin get the application to the authorized signor to sign?

 
On the forgiveness application borrowers will have the option to update the signor of the application by entering their email. This will route the final signature to them prior to submission of the application.

Can the primary admin reassign the task of applying for forgiveness to a different user in SVB Online Banking?

 
Yes, admins are able to reassign the application to a different user at the company by selecting “Re-Assign Task” in the application. If the user you would like to assign the application to for completion is not listed, update the user permissions to provide access to the PPP loan.

What is the difference between the SBA’s forgiveness application (SBA Form 3508), the SBA Form 3508EZ and the SBA Form 3508S?

 
The SBA Form 3508S
Borrowers of PPP loans of $50,000 or less may use SBA Form 3508S if the borrower and its affiliates, taken together have not received PPP loans totaling $2 million or more. Borrowers using the SBA Form 3508S do not have to provide detailed calculations of forgiveness amounts and are exempt from reductions in forgiveness based on reductions in FTE employees or reductions in wages. Borrowers are required to submit documentation in connection with their loan forgiveness application and will not be eligible to receive loan forgiveness without this documentation.

The forgiveness amount is dependent on the use of funds and supporting documents must be submitted as part of the application. For more information please visit SBA.gov.

SBA Form 3508EZ
The SBA 3508EZ form requires fewer forms and calculations and applies to borrowers that:

  • Are self-employed, independent contractors, or sole proprietor, and had no employees at the time of the PPP loan application; OR
  • Have not reduced the number of employees at all since January 1, 2020 AND have not reduced salary/wages more than 25% during the Covered (or Alternative Payroll Covered) Period for employees earning less than $100K in 2019; OR
  • Are not able to operate at the same level of business due to COVID-related requirements AND have not reduced salary/wages more than 25% during the Covered (or Alternative Payroll Covered Period) for employees earning less than $100K in 2019. 

If none of the preceding statements apply to your business, and your PPP loan is over $50,000, you will need to complete SBA Form 3508. If you are unsure, we recommend completing SBA Form 3508.

Note: If you are using SBA Form 3508, complete the PPP Schedule A Worksheet before starting your online forgiveness application with SVB.

Loans between $50,000 and $150,000
Legislation signed into law in December 2020 will make it easier for current and future borrowers with loans of $150,000 or less to request forgiveness via a simplified form. We are awaiting guidance on this from the SBA. We will continue to accept forgiveness applications but encourage eligible borrowers to consider waiting until the new form is available.

When is the latest time clients can submit a forgiveness application?

 
Borrowers may apply for forgiveness at any time during the term of their PPP loan. As long as a borrower submits their loan forgiveness application within ten months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by the SBA.

Loans between $50,000 and $150,000
Legislation signed into law in December 2020 will make it easier for current and future borrowers with loans of $150,000 or less to request forgiveness via a simplified form. We are awaiting guidance on this from the SBA. We will continue to accept forgiveness applications but encourage eligible borrowers to consider waiting until the new form is available.

What does the eight-week and 24-week covered period mean and when does it start?

 
The 8-week and 24-week covered periods refer to the time period during which costs must be incurred or paid to be eligible for forgiveness. The covered period starts immediately following the disbursement of the loan to the borrower.

What is the Alternative Payroll Covered Period?

 
If your payroll schedule is week or twice-weekly, you have the option to select an Alternative Payroll Covered Period on your application. The Alternative Payroll Covered Period is the same duration as your Covered Period (8-week or 24-week) but is a date adjusted to align with your payroll period to minimize the effort to prorate your payroll expenses.

Can the Alternative Payroll Covered Period be used for all expenses?

 
The Alternative Payroll Covered Period can only be used for payroll expenses. The covered period must be used for non-payroll expenses. Please visit the SBA Loan Forgiveness Application Instructions for further details.

What accrued interest is owed if the loan is fully or partially forgiven?

 
Accrued interest on the portion of the PPP loan that is forgiven will not be owed. The amount of loan forgiveness may be up to the full principal amount of the loan plus accrued interest.

What counts as a payroll expense?

 
Payroll costs include:
  • Cash compensation: For employee salary, wages and tips, the maximum allowed will be $46,154 per individual for a 24-week covered period and $15,385 for an 8-week covered period – both based on an annual $100,000 maximum, including costs for vacation, parental, family, medical or sick leave
    • If you are requesting forgiveness prior to the end of your Covered Period, please adjust the $100K annualized salary cap for each individual employee to your forgiveness application submission date. For example, $30,770 if applying after 16 weeks ($100,000/52 *16 weeks)
  • Taxes: Payment of state and local taxes assessed on compensation of employees, including unemployment insurance taxes (Federal taxes and FICA cannot be included)
  • Health insurance: Payment for employee health insurance, including employer contributions to a self-insured, employer-sponsored group health plan, but excluding any pre-tax or after tax contributions by employees
  • Retirement plan: Payment for employee retirement plans, excluding any pre-tax or after-tax contributions by employees
  • Owner compensation: the maximum allowed will be $20,833 (equivalent to 2.5 months of the annual maximum of $100,000) for a 24-week covered period and $15,385 for an 8-week covered period. For additional guidance on owner-employees, please review question eight on the Loan Forgiveness Payroll Costs FAQs from the SBA's FAQ on PPP Loan Forgiveness dated August 4, 2020. 

What documents does a client need to apply for forgiveness?

 
The SBA requires documents supporting payroll expenses, non-payroll expenses, and FTE counts. SVB has developed a Documentation Guide to help borrowers identify and gather the necessary documents and prepare for forgiveness.

A full list of the SBA documentation, submission and retention requirements can be found on the PPP Forgiveness Application (SBA Form 3508) instructions, the SBA Form 3508EZ application instructions, and the SBA Form 3508S application instructions. In addition, each form’s application instructions lists the documents that each borrower much maintain but is not required to submit. These documents may be requested if the SBA selects your application for a detailed review. 

We encourage our clients to provide Silicon Valley Bank with Professional Employer Organization (PEO) or payroll service company reports to evidence these items. In many cases, these providers are creating specialized reports that correspond to a client’s covered period.

What can borrowers expect after submitting a forgiveness application?

 
Borrowers can check the status of their application in Silicon Valley Bank’s Online Banking within the My Tasks area. SVB has 60 days to review the application and supporting documents upon receipt of a complete application. The accuracy and completeness of the information provided will impact how quickly the application can be processed. If SVB has questions about the application, we will contact you directly.

Once the application has been reviewed and deemed to be complete, SVB will submit it to the SBA. The SBA has 90 days to review and respond to SVB. SVB will inform the borrower once the SBA has provided its decision with respect to forgiveness.

In addition to Online Banking, as the status of the application changes, the primary admin can expect to receive updates via email.

I have submitted my forgiveness application to SVB. When should I expect to hear from SVB and the SBA?

 
SVB has 60 days to review the application and supporting documents upon receipt of a complete application. The accuracy and completeness of the information provided will impact how quickly the application can be processed. If SVB has questions about the application, we will contact you directly. We are reviewing all forgiveness applications in the order they were received. Our current processing time from receiving a forgiveness application to requesting additional information from the client and submitting it to the SBA is approximately three to four weeks. The SBA has 90 days to review and respond to SVB. SVB will inform the borrower once the SBA has provided its decision with respect to forgiveness. We appreciate your patience.

Is it possible to have some of the PPP loan forgiven, but not all?

 
Yes, it is possible to apply/be approved for partial forgiveness. The remaining PPP loan amount and any interest accrued on such amount will be payable according to the terms of the PPP Promissory Note.

What will happen if the SBA declines a borrower’s forgiveness application?

 
Borrowers will be notified by Silicon Valley Bank if the SBA determines that all or part of the loan is not forgivable. If the borrower does not agree with the SBA’s decision, they may appeal. We expect that the SBA will provide further guidance with respect to the appeals process. Borrowers will be required to start repayment of any portion of the PPP loan that is not forgiven.

Can a borrower appeal the SBA’s final loan review decision?

 
Yes, as long as the borrower follows the SBA’s detailed appeal process, which was posted on August 11, 2020. For details, visit SBA.gov.

Do borrowers need to make payments on their PPP loan after they submit their forgiveness application?

 
Borrowers will need to start making payments at the end of the deferral period with respect to any portion of the PPP loan that is not forgiven.

For borrowers that apply for forgiveness, their deferral period will end on the date SVB receives the forgiveness decision and payment from the SBA.

For those that do not apply for forgiveness, the deferral period will end 10 months after the end of the covered period (24 weeks from the date of the loan funding).

Loan Repayment

What are the terms of my PPP loan?

 
PPP loans disbursed prior to June 5, 2020 have a maturity of two years, starting from the date the loan was disbursed, and have an annual interest rate of 1%. Payments are deferred until after your deferral period ends (10 months after the borrower’s chosen 8-week or 24-week Covered Period or once the SBA provide a forgiveness decision, whichever is earlier), but the loan has been accruing interest since it was disbursed. Please keep in mind that the use of the loan funds remains the same regardless of whether the borrower receives forgiveness. Eligible use of funds includes payroll, mortgage interest, rent and utilities.

How do I repay all, or a portion, of my PPP loan?

 
If you would like to repay your PPP loan, please follow the process on SVB Learning Central and send an email to PPPRevokeRequest@svb.com with the required information. Repayment of your PPP loan is final and may not be revoked.

SVB Client Programs

How is SVB helping clients?

 
What matters to us is listening to your needs, being flexible with our solutions and being patient in our approach. SVB’s venture debt relief initiative, launched on April 1, has enabled more than 1,000 startups to defer their principal payments on a combined $2.1 billion in funded debt for six months. The Premium Wine Division is enabling a majority of clients to defer principal payments for three or six months, and SVB Private Bank clients are given the option to defer mortgage payments for 90 days.

SVB also participated in the Paycheck Protection Program under the US CARES Act, and we are in the process of applying to become an accredited lender in the UK under the Coronavirus Business Interruption Loan Scheme (CBILS).

How does SVB venture debt relief work?

 
The venture debt principal deferral program was launched on April 1, 2020 and is an SVB-only program, not under the auspices of any government agency. The program is applicable to SVB venture debt borrowers with a funded term loan balance or aggregate term loan commitment of $10M or less. The program defers all principal payments for six months. Eligible borrowers were notified by SVB directly. The program has enabled more than 1,000 startups to defer their principal payments on a combined $2.1 billion in funded debt for six months.

How do I keep up-to-date on what is available from SVB?

 
This is a fluid situation and we intend to communicate with our clients frequently. Please be patient as we try to get back to your calls and questions as quickly as we can. In addition to your Relationship Managers, Relationship Advisors and Client Service, please seek information from our COVID-19 Relief website here: www.svb.com/covid-relief

What is SVB's point of view about new client lending and whether clients should draw down on loans or lines of credit?

 
We have the financial capacity and willingness to lend. We have a highly liquid balance sheet, and we have the capability meet our clients’ needs now and invest for the future. As with any major financial decision, we recommend that you consult your advisors before accessing credit. If you have cash and don’t need to borrow now, you may want to wait instead of incurring additional debt service costs.

Government Programs

Is SVB an SBA Lender?

 
Yes, we are an approved SBA lender and are able to process PPP loan applications.

What is the process to apply with SVB for PPP?

 
Please visit www.svb.com/paycheck-protection-program to review the process.

Who should apply for the PPP?

 
The PPP program is specifically designed for those companies who can certify that they need the funds under the PPP requirements. We ask that you carefully consider how the COVID-19 crisis has actually impacted your ability to fund payroll, rent, mortgage interest or utilities before you sign your loan certification.

Why might I be turned down for a PPP loan?

 
In addition to the eligibility requirements of the PPP program, there are a number of SBA rules and requirements that may apply to your application. Also, all PPP applications are subject to a verification process to ensure that the payroll costs and other inputs required to determine the eligible loan amount as well as the know-your-customer review that banks are required to conduct by law. These and a number of other factors may have bearing on whether an application is accepted or declined.

Am I eligible for PPP if I’m a venture-backed company?

 
As of now, the affiliation rules are in force, which means venture-backed companies will need to consider them when determining their eligibility for a PPP loan. As part of the application process, we will ask you to make additional representations set forth below. We will not require you to provide a legal opinion in connection with your application.

In order to ensure that you take the SBA's affiliation rules into account and to help you consider some of the scenarios that might trigger affiliation under these rules, we will ask you to make these additional certifications when you complete your application. Please consult your legal counsel as you review them:

  1. No business which, when combined with the Applicant, would have more than 500 employees (or any higher number provided in SBA standards for the relevant industry): (a) owns or controls more than 50% of the Applicant's equity, or (b) has, pursuant to the Applicant's charter, bylaws or shareholder agreements, the ability to prevent a quorum or otherwise block action by the Applicant board of directors or shareholders, or (c) has the ability to control day-to-day activities of the Applicant through its Board or Shareholders (including for example, setting employee compensation, hiring and firing of executives, and purchasing or selling equipment);
  2. The Applicant is not one of the types of businesses ineligible for SBA business loans (see 13 CFR 120.110), nor is any owner of 20% or more of the business;
  3. The Applicant has considered the SBA's affiliation rules and included the employees of its affiliates (at any level) when determining its eligibility for this program; and
  4. The Applicant has considered existing options, convertible securities, and agreements to merge when determining its eligibility for this program.

Is SVB offering loans under the Main Street Lending Program?

 
We are currently assessing the updated program framework and details that were announced by the Federal Reserve on April 30, 2020. As we evaluate the changes to the program, we are also continuing to listen to our clients to understand their needs and aiming to be flexible with our solutions.

Is SVB participating in the Coronavirus Business Interruption Loan Scheme (CBILS) in the UK?

 
In the UK, SVB is an accredited lender under the Coronavirus Business Interruption Loan Scheme (CBILS) as well as the Coronavirus Large Business Interruption Loan Scheme (CLBILS).*

We continue to accept applications until 11:59 pm GMT on January 22, 2021 for the CLBILS program and 11:59 pm GMT on January 31, 2021 for the CBILS program.

We remain open for business for innovation companies and investors of all sizes and are dedicated to continuing to support our ecosystem. More information on CBILS and CLBILS.

Community Programs

Please share details about SVB’s Community Response.

 
SVB is targeting philanthropic efforts in three primary areas: health, food security and shelter, and small business relief. The bank has committed $5.5 million to COVID-19 charitable relief initiatives across the eight countries and 15 US states where the bank operates. This includes corporate contributions to global, national and regional charities, direct community-based giving and a 3:1 match for SVB employees’ donations to relevant causes. In addition, SVB will contribute net PPP loan origination fees it receives from the SBA to relief efforts.

The COVID-19 Global Impact & Innovation Fund, in partnership with Founders Pledge on March 30, 2020 was established to identify and consolidate into a single fund high-impact organizations that are creating solutions to the pandemic crisis. The fund is now focused on activities to help slow COVID-19’s spread and provide immediate relief to those affected. Looking ahead, it will target initiatives to better prepare for future pandemics. SVB made an initial $1 million investment in the fund, and we invite you to join us. Learn more and donate at https://www.founderspledge.com/svb-covid-19.

As part of our regional effort, SVB offices have supported many health, food security and shelter organizations. In the UK, for example, SVB has partnered with Meals for the NHS, a tech ecosystem initiative to provide much needed meals to frontline hospital staff that are dealing directly with COVID-19. Meals for the NHS is now operating across 75 hospitals in 21 towns and cities across the UK. Learn more at mealsforthenhs.com. In the US, SVB is supporting a similar effort nationwide led by Frontline Foods.

SVB is also supporting emergency small business grants through our partner Hello Alice's Business for All initiative. Hello Alice provides grants and guidance to small, women- and minority-owned businesses and hosts a free COVID-19 Business Resource Center to link these businesses to relief programs, funding opportunities, mentors and other support programs designed for New Majority entrepreneurs. To learn more and apply for emergency grants, visit www.covid19businesscenter.com/.