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SBA PAYCHECK
PROTECTION
PROGRAM


On March 27th, Congress passed the CARES Act, which enacted the
Paycheck Protection Program (PPP) under the SBA’s 7(a) lending program.

This new program is designed to give small businesses the capital they need to support payroll costs and other expenses during the temporary disruption caused by the COVID-19 pandemic.



PPP Quick Links


How to Apply

Due to the overwhelming demand for small business relief amid the COVID-19 pandemic, the government has allocated additional funds to the Small Business Administration Paycheck Protection Program (PPP). If you are a Citizens Bank business customer, with a loan or deposit relationship, you can apply for the SBA Paycheck Protection Program and upload documentation right from your desktop or mobile device.

Apply Now

Please note that there is currently a limited amount of funds available under this additional round of funding. Citizens cannot provide assurance that you will receive Small Business Administration approval for your loan request prior to the program funding limit being reached. By submitting an application, you agree to waive and release all claims against Citizens in the event the program funding limit is reached prior to your loan being funded.



Eligibility Requirements

  • Who is eligible?

     

    To qualify for this program you must:

    • Have been in business on or before February 15th, 2020
    • Have 500 or fewer employees or be SBA 7(a) loan eligible
  • How much can I borrow?

     

    Your average monthly payroll costs
    × 2.5 = Your loan amount

    OR

    For self-employed individuals with no employees:
    Your average monthly net profit (up to a net profit cap of $100,000 annually) x 2.5 = Your maximum loan amount



Protect Yourself and Your Business

Please be aware of fraudulent activity related to the Paycheck Protection Program. The Small Business Administration, Internal Revenue Service and U.S. Department of the Treasury will not contact anyone directly related to the various relief programs. In addition, Citizens Bank colleagues will never proactively call and ask for your full social security number or other sensitive information via phone or email. Please note that any promises to expedite receipt of payment or increase the payment amount from the government for a fee are fraudulent.

  • PPP Fraud

    How to Avoid PPP Small Business Fraud Schemes

    Learn More
  • Small Business Fraud

    Be on the Lookout: Small Business
    COVID-19 Scams

    Learn More

Prepare Required Documentation for
Your Application

Once you receive your application invitation, you will need the following documentation to apply:

  • Information demonstrating you had employees for whom you paid salaries and payroll taxes on February 15, 2020.
  • Your average monthly payroll costs for 2019 or for the last 12 months. Seasonal businesses may use the period from February 15 to June 30, 2019. New businesses may use the period from January 1 to February 29, 2020. These costs can be included for any of your U.S.-based employees:
    • Salary, wages, commissions or similar compensation to part-time and full-time employees, up to an annual cap of $100,000 per employee (note that the cap applies to compensation; payroll costs per employee can exceed $100,000/year).
    • Cash tips or the equivalent (based on historical records or, in the absence of such records, a reasonable estimate).
    • Payment for vacation, parental, family, medical or sick leave.
    • Allowance for separation or dismissal.
    • Payment for employee benefits consisting of group health care coverage, including insurance premiums, and retirement.
    • Payment of state and local taxes assessed on compensation of employees.
    • Payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, but payroll costs do not include the employer’s share of payroll tax.
  • Acceptable documentation includes payroll processor records, payroll tax filings or a Form 1099-MISC. You may want to check with your payroll provider to see if they have a form for this purpose. If you use an external payroll service provider, please visit your provider’s website or call your provider to learn how to get the PPP reports that can help you determine your eligibility and maximum loan amount. Submitting these forms with your loan application will expedite the loan underwriting process. If those documents aren’t available, bank records that demonstrate the payroll amount will suffice.

REQUIRED DOCUMENTATION FOR INDEPENDENT CONTRACTORS AND SELF-EMPLOYED INDIVIDUALS

  • A 2019 Form 1040 Schedule C, regardless of whether you have filed a 2019 tax return with the IRS.
  • Documentation that verifies you are self-employed and were in operation on February 15, 2020, including a 2019 IRS Form 1099-MISC detailing non-employee compensation received (box 7), invoice, bank statement or book of record.
  • If you have employees, you must also supply a 2019 Form 1040 Schedule C, Form 941 and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 - or equivalent payroll processor records - along with evidence of any retirement and health insurance contributions, if applicable. A payroll statement or similar documentation from the pay period that covered February 15, 2020, must also be provided to establish you were in operation on February 15.

PPP Forgiveness Information

Paycheck Protection loans can be forgiven if certain conditions are met. SBA guidance around this topic continues to evolve, however we want to help you prepare for your forgiveness application based on the SBAs current guidelines. For more information, visit our PPP forgiveness resources page.

Eligible Costs

Your loan will be eligible for forgiveness in an amount equal to the sum of the following costs incurred and payments made during the 8-week period following loan funding:

  • At least 75% of the total forgiveness amount must represent payroll costs
  • The remaining 25% can be spread across rent and interest on mortgage obligations beginning before 2/15/2020 and payment for utilities (electricity, gas, water, transportation, telephone, or internet access) for which service began before 2/15/2020.

Employee requirements

Your forgiveness amount will be reduced if, as compared to prior periods, you’ve reduced the number of your full-time employees, or if compensation across employees earning $100,000 or less was reduced by more than 25%.

If you already reduced your workforce and/or their salaries, the SBA may allow you until June 30, 2020, to rehire and increase salaries to avoid some or all of this reduction. However, 75% of your forgiveness amount must be attributable to payroll costs over the next eight weeks.

Documentation

Required documentation will likely include:

  • Verification of the number of employees on your payroll and pay rates, including IRS payroll tax filings and state income, payroll and unemployment insurance filings
  • Cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage, lease obligations and utilities payments

We recommend that you request forgiveness as soon as you are eligible, pending any plans to rehire or increase salaries. Any delay could result in invoices on your loan reflecting the total, pre-forgiveness loan balance.

Paycheck Protection loans can be forgiven if certain conditions are met. SBA guidance around this topic continues to evolve, however we want to help you prepare for your forgiveness application based on the SBAs current guidelines. For more information, visit our PPP forgiveness resources page.

Eligible Costs

Your loan will be eligible for forgiveness in an amount equal to the sum of the following costs incurred and payments made during the 8-week period following loan funding:

  • At least 75% of the total forgiveness amount must represent payroll costs
  • The remaining 25% can be spread across rent and interest on mortgage obligations beginning before 2/15/2020 and payment for utilities (electricity, gas, water, transportation, telephone, or internet access) for which service began before 2/15/2020.

Employee requirements

Your forgiveness amount will be reduced if, as compared to prior periods, you’ve reduced the number of your full-time employees, or if compensation across employees earning $100,000 or less was reduced by more than 25%.

If you already reduced your workforce and/or their salaries, the SBA may allow you until June 30, 2020, to rehire and increase salaries to avoid some or all of this reduction. However, 75% of your forgiveness amount must be attributable to payroll costs over the next eight weeks.

Documentation

Required documentation will likely include:

  • Verification of the number of employees on your payroll and pay rates, including IRS payroll tax filings and state income, payroll and unemployment insurance filings
  • Cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage, lease obligations and utilities payments

We recommend that you request forgiveness as soon as you are eligible, pending any plans to rehire or increase salaries. Any delay could result in invoices on your loan reflecting the total, pre-forgiveness loan balance.


Additional Resources

  • SBA.gov PPP

    Information about the PPP is evolving. Visit SBA.gov for additional information.

    Learn More

  • COVID-19 Resources

    Ready to get through this together. Visit our COVID-19 Resource Center for other resources.

    Learn More

  • COVID-19 Fraud Prevention

    Ready to fight back against fraud. Visit our COVID-19 fraud prevention resources.

    Learn More