PPP Forgiveness Portal Password Issue

Recap the latest guidance

• Covered Period – In the original PPP rule, your business was required to spend its PPP funds within 8 weeks. The covered period has been extended, at your option, to 24 weeks. This means that, if your business chooses to do so, you have 16 additional weeks in which to spend your PPP funds. Please note that this rule change did not increase maximum eligibility for loan funds—that remains the same.
• Deferment – Under the original PPP rule, loan payments were deferred for 6 months from the date of disbursement. The new rule has extended deferment to the end of the covered period (8 weeks or 24 weeks from disbursement, as discussed above) PLUS 10 months. This means that no payments would be due on your PPP loan for 10 months after the covered period ends.
  
  **UPDATE November 2020: The SBA has clarified loan deferment requirements and stated that the deferment period ends once the forgiveness application has been processed.  The deferment period will now only extend to 10 months after the covered period if you do not apply for loan forgiveness.
   
• Application Deadline – The extension of the deferment period explained above effectively means that the deadline for submitting your forgiveness application is extended until about 5  months after the end of the covered period (8 weeks or 24 weeks from disbursement), to allow time for processing and payment by SBA. In addition, the SBA will pay accrued interest on the forgiven amount through the date on which forgiveness funds are applied to the loan.
• Payroll Percentage Requirement – The requirement that 75% of the loan proceeds be spent on payroll costs has been reduced to 60%. If less than 60% is used for payroll costs, a proportional reduction in loan forgiveness will occur.

For Additional Details, please log into the Knowledge Center at bostonprivate.com/ppp

Knowledge Center Questions

Q: How do I obtain a password for the Knowledge Center?
A:  You must have an outstanding PPP loan through Boston Private to access the Knowledge Center.  Clients with PPP loans will receive a unique URL link from Boston Private.  If you did not receive the URL link, please visit bostonprivate.com/ppp and submit a question under the “technical problems or issues” category on the form.

Q:  I’ve lost my Knowledge Center Password.  How do I reset it?
A: Please visit bostonprivate.com/ppp and submit a question under the “technical problems or issues” category on the form.

Q:  The Knowledge Center is not working.  How do I report a problem?
A: Please visit bostonprivate.com/ppp and submit a question under the “technical problems or issues” category on the form.

Portal Questions

Q:  How do I reset my password on the portal?
A:  There is a “forgot password” link on the portal. Please follow those steps to reset your password.

Q:  The portal is not allowing me to upload documents.  How do I report an issue?
A:  Please visit bostonprivate.com/ppp and submit a question under the “technical problems or issues” category on the form.

Q:  How do I know where I am in the forgiveness process?
A: Please continue to check the portal for status. A link to the portal can be found here.  There are a number of status fields:

Lender Forgiveness Status:  Your forgiveness application is with Boston Private for review

• Application Received
• Under Review
• Suspended (if suspended, the status will be one of the below 3 reasons):
  • Borrower Dispute
  • Clarification from Borrower Required
  • Insufficient Documentation
  • Resubmitted
  • Lender Review Complete
  • Forgiveness Application Withdrawn

SBA Forgiveness Status:  Your forgiveness application is with the SBA.

• Pending Validation Decision has been submitted by Lender and is awaiting SBA acceptance.
• Under Review Decision is under review by SBA.
• Fully Approved Forgiveness has been approved for full amounted requested.
• Not Approved Forgiveness has been rejected or not approved.
• Partially Approved Forgiveness has been approved for a partial amount different from the Lender’s decision. Before setting this status, SBA will proactively reach out to the Lender.
• Lender Additional Info Needed SBA Reviewer needs additional information to make a Forgiveness determination. Detailed requests for information will be sent to the Lender’s Platform Inbox. This status will also be used for Loan Reviews.
• Payment Sent Payment has been initiated to Lender via ACH.
• Payment Confirmed ACH and payment has been posted.
• Payment Failed ACH processing was unsuccessful.

Q: I’ve logged into the portal but I don’t see any loans for which I can apply for forgiveness.  What do I do?
A: It’s possible that another employee/business owner/partner applied for the PPP Loan or that you applied using a different email address.  Please verify the email address used for correspondence during the PPP Loan application.  This email is the account you must use to apply for forgiveness.  If you’ve confirmed the account used to apply for the loan but still cannot apply for forgiveness, submit a question to bostonprivate.com/ppp under the “technical problems or issues” category on the form.  Include the borrower name/business name used to secure the PPP Loan.

Forgiveness Questions

Questions about the Forgiveness Process

Q: The Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act) extended the deferral period for borrower payments of principal, interest, and fees on all PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).  Previously, the deferral period could end after 6 months.  Are lenders and borrowers required to modify promissory notes used for PPP loans to reflect the extended deferral period?
A: The extension of the deferral period under the Flexibility Act automatically applies to all PPP loans.  Lenders are required to give immediate effect to the statutory extension and should notify borrowers of the change to the deferral period. SBA does not require a formal modification to the promissory note.  A modification of a promissory note to reflect the required statutory deferral period under the Flexibility Act will have no effect on the SBA’s guarantee of a PPP loan.

Q: What is the deadline for submitting my PPP forgiveness application?
A: The SBA has extended the PPP deferment period from 6 months after disbursement until 10 months after the covered period ends. In addition, the SBA will pay accrued interest through the date the forgiveness amount is applied to the loan. This means that a business should complete its application within 5 months after the end of the covered period to ensure that the forgiveness amount is applied before the deferment period ends and any repayment obligations begin.

Q: How long before the forgiveness amount is applied to my loan?
A: You can expect a final decision on a loan forgiveness amount within about 5 months after you submit all application information and supporting documents. Once you submit a completed application that includes all required supporting documentation, the bank has 60 days to issue a decision to SBA. If the lender determines that the borrower is entitled to forgiveness of some or all of the amount applied for, the lender must request payment from SBA at the time the lender issues its decision to SBA. SBA will, subject to any SBA review of the loan or loan application, remit the appropriate forgiveness amount to the lender, plus any interest accrued through the date of payment, not later than 90 days after the lender issues its decision to SBA.

Q: Will you notify me of the bank’s forgiveness decision?
A: Boston Private will notify the borrower contact that the loan forgiveness application has been approved, approved in part, or denied. This notice will be provided at the same time Boston Private submits the decision to SBA.

Q: What if I do not agree with Boston Private’s determination of the loan forgiveness amount
A: Within 30 days of notice from Boston Private, the borrower may notify Boston Private in writing that it is requesting that SBA review the lender’s decision. The borrower can do so by visiting bostonprivate.com/ppp and entering a question in the “Disputes”  category. Within 5 days of receipt, Boston Private must notify SBA of the borrower’s request for review. SBA will notify Boston Private if SBA declines a request for review. If the SBA declines the request for review, Boston Private will notify the borrower of the date on which the borrower’s first payment is due. If SBA accepts a borrower’s request for review, SBA will notify the borrower and the lender of the results of the review. If SBA denies forgiveness in whole or in part, Boston Private will notify the borrower of the date on which the borrower’s first payment is due.

Q: What do I do if I do not agree with the forgiveness amount I received from the SBA?
A: The SBA’s determination of the forgiveness amount is final unless the SBA issues a denial without prejudice. In the case of a denial without prejudice, the borrower may subsequently request that Boston Private reconsider its application for loan forgiveness, based upon whatever additional information is provided in support of that request.

Questions About the Terms of Forgiveness

Q: What are the terms of loan forgiveness?
A: The terms of forgiveness are established by the SBA. The SBA’s rule on loan forgiveness can be found here: https://www.sba.gov/sites/default/files/2020-05/IFR%20Forgivenss%20FINAL.pdf and here: https://www.sba.gov/sites/default/files/2020-06/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule-508.pdf. These rules are the source of the other information included in this section of the FAQs.

Q: What is the covered period for determining loan forgiveness?
A: The eligible amounts will be measured over the eight-week or twenty-four week period following the date of the loan. For loans disbursed prior to June 5, 2020, the borrower may choose either the eight-week period or the twenty-four week period when completing its forgiveness application. For loans disbursed after June 5, the twenty-four week period applies.

Q: How much of a PPP loan can be forgiven?
A: The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest if the borrower uses all of the loan proceeds for forgivable purposes (payroll costs, mortgage interest, rent, and utilities) and compensation levels are maintained. The actual amount of loan forgiveness will depend on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020.

Q: What would cause the amount of loan forgiveness to be reduced?
A: There are three potential forgiveness reductions, as follows.

• Payroll Cost Requirement: If more than 40 percent of the loan amount is spent on non-payroll costs (i.e., mortgage interest, rent, or utility payments) there is a proportional reduction in the amount of forgiveness.
• FTE Reductions: In general, a reduction in FTE employees during the covered period reduces the loan forgiveness amount by the same percentage as the percentage reduction in FTE employees. The borrower must first select a reference period: (i) February 15, 2019 through June 30, 2019; (ii) January 1, 2020 through February 29, 2020; or (iii) in the case of a seasonal employer, either of the two preceding methods or a consecutive 12-week period between May 1, 2019 and September 15, 2019. If the average number of FTE employees during the covered period or the alternative payroll covered period is less than during the reference period, the total eligible expenses available for forgiveness is reduced proportionally by the percentage reduction in FTE employees. For example, if a borrower had 10.0 FTE employees during the reference period and this declined to 8.0 FTE employees during the covered period, the percentage of FTE employees declined by 20 percent and thus only 80 percent of otherwise eligible expenses are available for forgiveness.
• Salary or Wage Reductions: A reduction in an employee’s salary or wages in excess of 25 percent will generally result in a reduction in the loan forgiveness amount, unless an exception applies (see below). Specifically, for each new employee in 2020 and each existing employee who was not paid more than the annualized equivalent of 19 $100,000 in any pay period in 2019, the borrower must reduce the total forgiveness amount by the total dollar amount of the salary or wage reductions that are in excess of 25 percent of base salary or wages between January 1, 2020 and March 31, 2020 (the reference period). This reduction calculation is performed on a per employee basis, not in the aggregate.

NOTE: To ensure that borrowers are not doubly penalized, the salary/wage reduction applies only to the portion of the decline in employee salary and wages that is not attributable to an FTE reduction.

Q:    Are there any exceptions to the forgiveness reduction rules?
A: Yes, there are several, as follows.

• Salary and Wage Reduction Reversal: Generally, if employee salaries and wages were reduced between February 15, 2020 and April 26, 2020 (the safe harbor period) but the borrower eliminates those reductions by December 31, 2020 or earlier, the borrower is exempt from any reduction in loan forgiveness amount that would otherwise be required
• FTE Reduction Reversal: Similarly, if a borrower eliminates any reductions in FTE employees occurring during the safe harbor period by December 31, 2020 or earlier, the borrower is exempt from any reduction in loan forgiveness amount that would otherwise be required due to reductions in FTE employees.
• Firings for Cause; Voluntary Reductions and Separations: When an employee of the borrower is fired for cause, voluntarily resigns, or voluntarily requests a reduced schedule during the covered period or the alternative payroll covered period, the borrower may count such employee at the same full-time equivalency level before the FTE reduction event when calculating the FTE employee reduction penalty (see above).
• Employee Availability: In calculating the loan forgiveness amount, a borrower may exclude any reduction in full-time equivalent employee headcount that is attributable to an individual employee if:

1. The borrower made a good faith, written offer to restore the reduced hours of such employee;
2. The offer was for the same salary or wages and same number of hours as earned by such employee in the last pay period prior to the reduction in hours;
3. The offer was rejected by the employee;
4. The borrower informed the applicable state unemployment insurance office of any employee’s rejected rehire offer within 30 days of the employee’s rejection of the offer;
5. The borrower was unable to hire similarly qualified individuals for unfilled positions on or before December 31, 2020; and
6. The borrower has maintained written records documenting the offer and its rejection, and of efforts to hire a similarly qualified individual.

• Business Activity Restrictions: Borrowers are exempted from the loan forgiveness reduction arising from a reduction in the number of FTE employees during the covered period if the borrower is able to document in good faith an inability to return to the same level of business activity as the borrower was operating at before February 15, 2020, due to compliance with requirements established or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention (CDC), or the Occupational Safety and Health Administration related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID-19 (“COVID Requirements or Guidance”).
  
  Specifically, borrowers that can certify that they have documented in good faith that their reduction in business activity during the covered period stems directly or indirectly from compliance with such COVID Requirements or Guidance are exempt from any reduction in their forgiveness amount stemming from a reduction in FTE employees during the covered period. Documentation must include copies of applicable COVID Requirements or Guidance for each business location and relevant borrower financial records. The exemption includes both direct and indirect compliance with COVID Requirements or Guidance, because a significant amount of the reduction in business activity stemming from COVID Requirements or Guidance is the result of state and local government shutdown orders that are based in part on guidance from the three federal agencies.

Q: What if my payroll period began on a different day from the disbursement date? Can I align the covered period to match my payroll cycle?
A: In some cases, yes. A borrower with a bi-weekly (or more frequent) payroll cycle may elect to use an alternative payroll covered period that begins on the first day of the first payroll cycle in the covered period and continues for either (a) eight weeks, in the case of a borrower that received its PPP loan before June 5, 2020 and elects to use an eight-week covered period, or (b) 24 weeks, in the case of all other borrowers. If payroll costs are incurred during this alternative payroll covered period, but paid after the end of the alternative payroll covered period, such payroll costs will be eligible for forgiveness if they are paid no later than the first regular payroll date thereafter.

Q: Are there any differences in the amount of loan forgiveness available for owner-employees and self-employed individuals’ own payroll compensation?
A: Yes. For borrowers that received a PPP loan before June 5, 2020 and elect to use an eight-week covered period, the amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at eight weeks’ worth (8/52) of 2019 compensation (i.e., approximately 15.38 percent of 2019 compensation) or $15,385 per individual, whichever is less, in total across all businesses.

For all other borrowers, the amount of loan forgiveness requested for owner-employees and self-employed individuals’ payroll compensation is capped at 2.5 months’ worth (2.5/12) of 2019 compensation (i.e., approximately 20.83 percent of 2019 compensation) or $20,833 per individual, whichever is less, in total across all businesses.

In particular:

• C-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer retirement and health insurance contributions made on their behalf;
• S-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer retirement contributions made on their behalf, but employer health insurance contributions made on their behalf cannot be separately added because those payments are already included in their employee cash compensation.
• Schedule C or F filers are capped by the amount of their owner compensation replacement, calculated based on 2019 net profit.
• General partners are capped by the amount of their 2019 net earnings from self-employment (reduced by claimed section 179 expense deduction, unreimbursed partnership expenses, and depletion from oil and gas properties) multiplied by 0.9235.
• For self-employed individuals, including Schedule C or F filers and general partners, retirement and health insurance contributions are included in their net self-employment income and therefore cannot be separately added to their payroll calculation.

Q: When must non-payroll costs be incurred and/or paid to be eligible for forgiveness?
A: A non-payroll cost is eligible for forgiveness if it was: (1) paid during the covered period; or (2) incurred during the covered period and paid on or before the next regular billing date, even if the billing date is after the covered period.

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