The Covered Period is either (1) the 24-week (168-day) period beginning on the PPP Loan Disbursement Date, or (2) if the Borrower received its PPP loan before June 5, 2020, the Borrower may elect to use an eight-week (56-day) Covered Period. For example, if the Borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4. In no event may the Covered Period extend beyond December 31, 2020.
We’re here to help your business.
Santander is ready to help our business customers. Below you will find details on the steps we have taken, resources available to you, and how to contact us. Rest assured, we’re here to help get you and your business through this unprecedented time.
Please contact us at (877) 768 - 1145 or contact your relationship manager.
Hearing-and-speech impaired customers may use 7-1-1 or their preferred relay service.
The CARES Act | Paycheck Protection Program
Loan Forgiveness Update
Under the PPP Flexibility Act and the amended Interim Final Rules, you have more time and flexibility to use PPP funds and qualify for forgiveness.
- The time that you may use your PPP funds was extended from 8 weeks to 24 weeks (the "Covered Period")
- The requirement that 75% percent of PPP proceeds be used for payroll costs to be forgivable was lowered to 60%
- If you apply for forgiveness within 10 months of the end of the 24-week Covered Period your monthly loan payments will not begin until the Small Business Administration ("SBA") confirms and sends the forgiveness amount
- There are additional safe harbors from reductions in loan forgiveness due to reductions in workforce (as more fully set forth in the rules and form application)
SBA issued a revised forgiveness application form and a simplified “EZ” form that certain business owners may be qualified to use. We encourage you to visit the US Treasury website to view the SBA Full Application Form and "EZ" form, along with the accompanying instructions for each.
Please note: Borrowers are responsible for compliance with the law, rules and guidance relating to PPP, which are subject to change and amendment. Visit the US Treasury website for the most up-to-date information.
Forgiveness Application and Getting Ready to Apply
We continue to monitor congressional activity which, among other things, may significantly change the Paycheck Protection Program (PPP) loan forgiveness process as it stands today. Once we have more clarity on potential changes to the process, we will be in contact with you on our forgiveness application and process. When we are ready to accept loan forgiveness applications, we will email you with instructions on how to request a loan forgiveness application. When this email arrives from ' PPPForgivenessrequest@santander.us', follow the instructions provided to prepare your Santander Bank PPP Loan Forgiveness Application. Remember, if you apply for forgiveness within 10 months of the end of the 24-week Covered Period, your monthly loan payment will not be due until SBA confirms and sends the forgiveness amount.
Here’s what you can do to prepare for the loan forgiveness application:
- Download and review Santander Bank PPP Forgiveness Application Guide
- Review the Full Application Form and EZ Application form on the US Treasury Website and determine which application is right for you
- Visit the US Treasury Website to review the most updated rules and frequently asked questions concerning the PPP loan forgiveness process.
- Become familiar with the Forgiveness terms used in the application forms. Definitions are provided below
- If you decide on the Full Application path, review the instructions for, and gather the information required on the Schedule A Worksheet (provided with the Full Application)
- For either path, gather documentation that supports your:
- FTE (Full-time equivalency)
- Payroll costs
- Bank accounts or third-party payroll service provider reports
- Tax forms
- Payment receipts, cancelled checks, or account statements for employee health insurance and retirement plans
- Non-payroll costs (if applicable)
- Mortgage interest: Copy of lender amortization schedule and receipts or cancelled checks; or lender account statements
- Rent: Copy of current lease agreement and receipts or cancelled checks; or lessor account statements
- Utilities: Copy of invoices, receipts, cancelled checks; or account statements
For administrative convenience, Borrowers with a biweekly (or more frequent) payroll schedule may elect to calculate eligible payroll costs using the 24-week (168-day) period (or for loans received before June 5, 2020 at the election of the borrower, the eight-week (56-day) period) that begins on the first day of their first pay period following their PPP Loan Disbursement Date. For example, if the Borrower is using a 24-week Alternative Payroll Covered Period and received its PPP loan proceeds on Monday, April 20, and the first day of its first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, October 10. Borrowers that elect to use the Alternative Payroll Covered Period must apply the Alternative Payroll Covered Period wherever there is a reference in this application to “the Covered Period or the Alternative Payroll Covered Period.” However, Borrowers must apply the Covered Period (not the Alternative Payroll Covered Period) wherever there is a reference in this application to “the Covered Period” only. In no event may the Alternative Payroll Covered Period extend beyond December 31, 2020.
Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the 24-week (168-day) or 8-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”). Payroll costs are considered paid on the day that paychecks are distributed or the Borrower originates an ACH credit transaction. Payroll costs are considered incurred on the day that the employee’s pay is earned. Payroll costs incurred but not paid during the Borrower’s last pay period of the Covered Period (or Alternative Payroll Covered Period) are eligible for forgiveness if paid on or before the next regular payroll date. Otherwise, payroll costs must be paid during the Covered Period (or Alternative Payroll Covered Period). For each individual employee, the total amount of cash compensation eligible for forgiveness may not exceed an annual salary of $100,000, as prorated for the Covered Period. Count payroll costs that were both paid and incurred only once. For information on what qualifies as payroll costs, see Interim Final Rule on Paycheck Protection Program posted on April 2, 2020 (85 FR 20811) (as amended by the Revisions to First Interim Final Rule, posted on June 11, 2020). Include only payroll costs for employees whose principal place of residence is in the United States.
Nonpayroll costs eligible for forgiveness consist of:
(a) covered mortgage obligations: payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020 (“business mortgage interest payments”);
(b) covered rent obligations: business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020 (“business rent or lease payments”); and
(c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020 (“business utility payments”).
An eligible nonpayroll cost must be paid during the Covered Period or 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. Eligible nonpayroll costs cannot exceed 40% of the total forgiveness amount. Count nonpayroll costs that were both paid and incurred only once.
How we are helping our existing business customers
We’ve been working diligently to help you through this challenging time. And, we’re far from finished.
What we’ve accomplished for Business Customers:
10,000+ Santander business customers received Paycheck Protection Program (PPP) loans
$1.2+ Billion in funding for PPP loans
79% of the PPP loans issued were $100,000 or less
24% of Paycheck Protection Program loans were made to businesses in Low to Moderate Income (LMI) areas
What we’ve accomplished for our Community:
$7.5 million in grants were expedited to fund 80 community based organizations that provide direct COVID-19 relief, valuable essential services and critical small business aid
What we’re offering to our customers:
We are offering existing loan customers interest-only accommodations, deferrals, and extensions up to 90 days may be available
We are working with our business customers on loan terms, and offering payment accommodations to customers who are facing hardships
We developed hardship programs from small businesses to suspend loan payments and cease collection calls to impacted customers
If you’re a Business Banking Customer and need assistance, please contact us at (877) 768 1145 or contact your relationship manager. Hearing-and-speech impaired customers may use 7-1-1 or their preferred relay service.
Self-service banking options to keep business running
Santander has the solutions to help you manage your finances right from your place of business. We encourage customers to use our self-service options, such as our Business Mobile Banking App, our Business Online Banking platform, our Automated Telephone Banking, and our ATM network as well as remote cash management services to minimize the need to go to a branch or exchange cash.
If you haven’t signed up for our Business Mobile and Business Online Banking options, you’ll find more details here:
Manage payments and receivables remotely with:
If you want help setting up these services, don’t hesitate to contact us at (877) 768 1145 or contact your relationship manager.
Resources available on Business First
Business First is your source for practical tips, success stories, and ideas to help run your business. During this challenging time, we developed the Business First Coronavirus Resource Page.
Here are some of our latest articles:
- Amir Madjlessi Provides Insight on COVID-19’s Impact to Small Businesses
- How Banks Can Help Support Businesses in Response to Coronavirus
- Planning for Business Delays and Disruptions Due to Coronavirus (COVID-19)
- Learn How the SBA Can Support Your Small Business Right Now
- 5 Tips for Staying Productive and Mentally Healthy While You're Working From Home
- Coronavirus forces small businesses to rethink strategies
How Santander is helping the communities we serve
Santander US is committed to supporting our communities impacted by the COVID-19 pandemic. In addition to our ongoing support for our nonprofit partners providing essential services in our communities, including $15 million in charitable giving this year, Santander will provide $25 million in financing to Community Development Financial Institutions (CDFIs) to fund small business loans across Santander Bank's footprint. We also will expedite grant funding and payments where possible to help sustain nonprofit operations during this challenging time.
The Paycheck Protection Program ended on August 8, 2020
We encourage you to visit the US Treasury Website to review the most updated rules and frequently asked questions concerning the PPP loan forgiveness process.
Resources from our partners at ADP
Resources from Santander Merchant Services powered by First Data®
A number of government relief programs for businesses are being implemented on federal, state, and local levels. In an effort to provide direction and support for our impacted business community, please reference the guide below for information on economic relief efforts:
Community Development Financial institutions (CDFIs)
As state and local government agencies mobilize to support small businesses through this time of economic hardship, Community Development Financial institutions (CDFIs) will be key players in these efforts. Use this CDFI Locator to identify organizations in your area and be sure to check your city or local government websites for small business support programs.
Small Business Administration (SBA)
Stay up to date on the latest updates from the Small Business Administration by visiting Coronavirus (COVID-19): Small Business Guidance & Loan Resources.
U.S. Chamber of Commerce | Coronavirus Small Business Guide
Visit the United States Chamber of Commerce Coronavirus Small Business Guide, updated daily with new resources to assist you and your business.
The information provided herein may contain content supplied by third parties and is for general and informational purposes only and is not and should not be considered legal, tax or financial advice. Any information or content regarding any specific person, entity, or service does not constitute or imply their or its endorsement, recommendation or favoring by or partnership or affiliation with Santander Bank, N.A. (“Santander”). Neither Santander nor any of its employees assumes any legal liability for the accuracy, completeness, or usefulness of any of the content of this publication. In no event shall Santander nor any of its employees be liable for any use of, for any decision made or action taken in reliance upon or for any errors in, or omissions from this information. Santander assumes no responsibility or liability whatsoever to any person in respect of such matters, and nothing within this document shall amend the terms and conditions of the agreement(s) between you and Santander.
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