Paycheck Protection Program
Status - May 6, 2021
SBA Halts PPP Applications for Large Financial Institutions
On May 4, 2021, the SBA made the unexpected decision to stop accepting Paycheck Protection Program (PPP) loan applications from large financial institutions including Silicon Valley Bank. If you are looking to submit your PPP loan application, please note the SBA is still accepting PPP loan applications from Community Development Financial Institutions (CDFIs) and minority depository institutions (MDIs) until all the PPP funds are depleted.
SVB is currently accepting PPP 2020 Loan forgiveness application via SVB Online Banking.
PPP 2021 loan forgiveness applications will become available on a rolling basis when 8 weeks have passed since the PPP 2021 loan was distributed.
Please visit our FAQ page for more information on forgiveness.
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.