Megan Brooks
The Small Business Administration's (SBA) Paycheck Protection Program (PPP) provides loans to small businesses impacted by the COVID-19 pandemic. PPP loans are available through various banks, credit unions, and online lenders, with eligibility and application requirements varying across providers. While some banks prioritized existing customers for PPP loans in 2020, others accepted applications from new customers. As of 2021, PPP funding has been exhausted, and the program formally ended on May 31, 2021, though the SBA continues to process forgiveness applications.
| Characteristics | Values |
|---|---|
| Date | May 23, 2021 |
| Banks accepting applications for first-time PPP borrowers | America First Credit Union, American Lending Center, Ameris Bank, AltCap, Atlantic Capital, Bank of America, Bank of Hope, Bank of the West, BBVA, Bluevine, BMO Harris, Byline Bank, Cathay Bank, CenterState Bank, The Bank of Princeton |
| Additional requirements for first-time borrowers | Must have a business bank account or be willing to sign up for one |
| Banks accepting applications for second-time PPP borrowers | America First Credit Union, American Lending Center, Ameris Bank, AltCap, Atlantic Capital, Bank of America, Bank of Hope, Bank of the West, BBVA, Bluevine, BMO Harris, Byline Bank, Cathay Bank, CenterState Bank, The Bank of Princeton |
| Additional requirements for second-time borrowers | Must have received the first PPP loan through the bank |
| Banks not accepting applications | Citizens Bank, Comerica Bank |
| Additional information | The PPP application portal stopped accepting applications for loans from most lenders on May 24, 2021, at 5 PM |
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What You'll Learn
Which banks are accepting PPP applications?
As of May 2021, the following banks were accepting applications for the Paycheck Protection Program (PPP) loans:
- Ion Bank
- America First Credit Union
- American Lending Center
- Ameris Bank
- AltCap
- Atlantic Capital
- Bankers Trust
- Bank of America
- Bank of Hope
- Bank of the West
- BBVA
- Bluevine
- BMO Harris
- Byline Bank
- Cathay Bank
- CenterState Bank
- The Bank of Princeton
Some of these banks were only accepting applications from existing customers. For example, Bank of America was only accepting applications from existing small business customers, while Bank of the West was accepting applications from existing customers who had an active business checking account as of January 1, 2021.
It is important to note that this information is from May 2021 and may not reflect the current status of PPP loan applications at these banks. It is always best to check with individual banks to confirm their acceptance of PPP loan applications.
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What are the requirements for a PPP loan?
The SBA's Paycheck Protection Program (PPP) is a loan for small businesses impacted by the COVID-19 pandemic. PPP loans have an interest rate of 1%. Loans issued prior to June 5, 2020, have a maturity of two years, while loans issued after this date have a maturity of five years.
To qualify for a PPP loan, you must meet certain requirements. Firstly, you must be a small business concern that meets the SBA's size standards, which could be either the industry size standard or the alternative size standard. Additionally, your business should have no more than 300 employees and be able to demonstrate a reduction of at least 25% in annual gross receipts or in any 2020 quarter compared to the same quarter in 2019.
Another requirement is that you should either have a small business lending and small business checking relationship with a bank or a small business checking account with no business credit or borrowing relationship with another bank. Some banks, like Bank of America, require applicants to have had a business lending and business deposit relationship prior to a specified date. Alternatively, you may be eligible if you have a business bank account and do not have a credit or borrowing relationship with another bank.
It's important to note that some lenders give priority to existing customers, and you may need to open a business bank account with them before completing the application. Additionally, if you have previously received a PPP loan, you may be eligible for a second PPP loan if you meet certain conditions, such as using or planning to use all of your first PPP loan.
Before applying for a PPP loan, it's recommended to review the specific requirements and eligibility criteria provided by the lender and the SBA.
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Which banks are prioritising existing customers?
As of 2021, several banks are prioritising existing customers for PPP loans. Bank of America is only accepting applications from existing small business customers. To apply, businesses must have had a business lending and business deposit relationship with Bank of America before 12/21/2020, or have a business bank account without a credit or borrowing relationship with another bank.
Atlantic Capital Bank is also accepting PPP loan applications from current customers only. Similarly, Bank of the West is prioritising existing customers who had an active business checking account as of 1/1/2021. BBVA USA, a subsidiary of Banco Bilbao Vizcaya Argentaria, is also accepting applications from existing customers through its online portal.
Other banks prioritising existing customers include BMO Harris, Byline Bank, Bank of Hope, CenterState Bank, Bankers Trust, Citizens Bank, Comerica Bank, First Commonwealth Bank, FinWise Bank, Frost Bank, Fulton Bank, Liberty Bank, and BankUnited.
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Which banks are accepting applications from new customers?
As of May 2021, several banks are accepting applications for the Paycheck Protection Program (PPP) from new customers. However, it's important to note that the PPP application portal stopped accepting applications for loans from most lenders on May 24, 2021, and the program formally ended on May 31, 2021. Here are some banks that were accepting applications from new customers as of that time:
- Ion Bank: They continued to accept PPP applications until May 24, 2021, at 5 PM.
- The Bank of Princeton: New customers could apply for PPP loans, but they needed to open a Business Account before the loan could be funded.
- America First Credit Union: Applicants must have a business bank account or be willing to sign up for one.
- American Lending Center: This non-bank lender is accepting PPP loan applications on its website.
- Ameris Bank: New customers based in Alabama, Florida, Georgia, North Carolina, and South Carolina are eligible to apply.
- Cathay Bank: Cathay Bank accepts applications from new borrowers located in California, Illinois, Maryland, Massachusetts, New Jersey, New York, Nevada, Texas, and Washington. A business checking account with the bank is required before completing the application.
- Bluevine: This alternative lender is accepting applications from new customers.
- Bank of Hope: While they previously accepted applications from new customers, they have since stopped accepting new PPP applications as of April 28, 2020, due to the high volume of applications.
Some other banks mentioned, such as BMO Harris, Bankers Trust, and Bank of America, prioritize existing customers but do not specify whether they accept new customers or not. It is always best to check with individual banks for the most up-to-date information.
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How do I apply for PPP loan forgiveness?
The Small Business Administration (SBA) has a direct forgiveness portal for PPP loan forgiveness applications. Applying for forgiveness using the portal can take as little as 15 minutes. The questions in the portal correspond to those asked on SBA Form 3508, SBA Form 3508EZ, or SBA Form 3508S.
Each forgiveness form has unique instructions for documentation that must be submitted with your loan forgiveness application. For detailed instructions, refer to your chosen forgiveness form for clear guidance. SBA Form 3508S does not require borrowers to provide additional documentation upon forgiveness submission, but borrowers should be prepared to provide relevant documentation if requested as part of the loan review or audit processes.
In addition to using the SBA's direct forgiveness portal, lenders can still accept PPP forgiveness applications directly. Reach out to your lender for assistance.
Borrowers can apply for forgiveness any time up to five years from the date that SBA issued the SBA loan number. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
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Frequently asked questions
Yes, as of May 2021, several banks are accepting applications for the SBA's Paycheck Protection Program (PPP). This includes Ion Bank, Bank of Hope, Bank of the West, and more. However, it's important to note that some banks are only accepting applications from existing customers.
As of 2021, Bell Bank, with branches in North Dakota, Minnesota, and Arizona, is accepting applications from both new and existing customers. Additionally, Bluevine, an alternative lender, is accepting applications from new and existing customers.
The requirements vary depending on the bank. Some banks only accept applications from existing customers, while others may require you to have a business bank account or meet certain eligibility criteria. It's best to check with individual banks for their specific requirements.
The application process may vary depending on the bank. Some banks accept applications online, while others may require you to contact your banker or relationship manager. Be sure to review the requirements and instructions provided by your chosen bank.
The PPP loan application deadline has varied and may be subject to changes. As of March 2021, the last day to apply for a First Draw or Second Draw PPP loan was March 31, 2021. However, this date may have been extended or updated, so it's important to refer to the latest information provided by the Small Business Administration (SBA) or your chosen lender.
