Paycheck Protection Program
Status - February 24, 2021
SBA Pausing PPP Loan Processing for Some Companies
For a two-week period beginning Wednesday, February 24, 2021, the SBA is accepting PPP loan applications only from businesses with fewer than 20 employees. This is intended to ensure PPP funds are made available to small businesses most in need.
While we are unable to submit applications for businesses with 20 or more employees during the two-week period, we continue to accept new applications and review existing loan applications to ensure they are ready for SBA submission on March 9, 2021.
As of February 21, 2021, approximately $140 billion of the available $248 billion in PPP funds has been approved.
The SBA released updated simplified forgiveness forms on January 20, 2021 for current and future borrowers with PPP loans of $150,000 or less. The SBA is planning to stop accepting the current forgiveness forms on March 4, 2021. To complete processing the forgiveness requests we have in our queue before the SBA stops accepting the current forms, we will pause accepting new forgiveness requests or resubmissions on February 15, 2021.
We will continue to process forgiveness requests we receive before February 15. If your forgiveness application is currently in review with SVB, we will work to process your request before the SBA's deadline for accepting legacy forms. We encourage you to respond promptly to any request from SVB for additional documentation and information so we can finalize and close out your forgiveness request as soon as possible.
We expect to resume accepting forgiveness requests via the new forms in mid-March 2021 and will email borrowers at that time.
Please note, borrowers are welcome to apply for a second PPP loan with SVB regardless of the forgiveness status of their first loan.
Please visit our FAQ page for more information on forgiveness.
SVB'S DIGITAL PPP 2021 LOAN APPLICATION PROCESS IS NOW OPEN. LOG IN TO SVB ONLINE BANKING TO GET STARTED.
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. Additional information can be viewed on our PPP FAQ page and our PPP Care Team can be reached at SVBPPPCare@svb.com.
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.
Applying for a 2021 PPP Loan
An application task has been assigned to the Primary Administrator associated with your account in SVB Online Banking. If you already have a PPP loan with SVB, the application task was assigned to the User who is assigned to your company's PPP forgiveness application.
Please review the relevant applications available from the SBA: First Draw and Second Draw.
First Draw PPP Borrowers
To be eligible for a first-time 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.
Second Draw PPP Borrowers
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, all funds from the first PPP loan prior to funding of the second PPP loan
• If you are currently waiting for a forgiveness decision from the SBA on your first PPP loan, there may be delays in processing your PPP loan application for a second draw.
Further, the new law provides that companies must not:
• Be publicly traded on an exchange
• Be involved in public lobbying
• Be found to be ineligible for the First Draw or
• Have a nexus to mainland China or Hong Kong
Note: We are not accepting applications for increases of first draw PPP loans at this time.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.
If you previously received a PPP loan from another lender and are interested in applying for a second draw, you are welcome to apply with SVB. However, if you are currently waiting for a forgiveness decision from the SBA on your first loan, there may be delays in processing your loan application for a second draw. For ease and speed, we recommend working with the same lender from which you obtained your first PPP loan.
For more information on PPP 2021 and Forgiveness for existing PPP loans, please visit our FAQ page.
SBA Release of Loan Recipient Data
On December 1, 2020 the SBA released the names, addresses and precise loan amounts of all PPP and COVID-19 related EIDL borrowers, as ordered by a federal judge in response to a Freedom of Information Act request. Silicon Valley Bank and other PPP lenders had no input in the SBA’s decision to release this information.
Unfortunately, we have heard that some third-party businesses are using the released information to market themselves to PPP borrowers. These communications may reference SVB and may even imply that we have a relationship. You should be aware that we will communicate directly with you about your PPP loan and the forgiveness process.
In addition, there may be some discrepancies and inaccuracies in the data, similar to what occurred in previous data releases from the SBA. If you believe your company has been incorrectly included on the list of loan recipients, contact the SBA’s Office of Inspector General Hotline at 800.767.0385 or via their online form. Please note that even if your company repaid its PPP or EIDL loan, it will appear on the list the SBA released due to the order from the federal judge.
SBA Rules on Changes in Ownership
Many PPP borrowers are considering transactions that involve changes in the borrower’s equity ownership (e.g. raising equity, mergers, etc.). On October 2, 2020, the SBA published an official procedural notice detailing the requirements for PPP borrowers who wish to make any changes to their equity ownership.
Under this new guidance, PPP borrowers who wish to make any equity ownership changes 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.