SBA Paycheck Protection Program

The Economic Aid Act was signed into law on December 27, 2020, and establishes an additional $284 billion in additional Paycheck Protection Program (PPP) funding to assist eligible small businesses that continue to face hardships during the pandemic.

  • Overview

    Overview

    First Republic is pleased to participate in the SBA’s PPP to help our existing small business and nonprofit clients gain access to these funds. Interested First Republic clients are invited to review the information presented here in preparation for the application process. We will continue to provide updates as new information becomes available.

    For additional clarity, the following terms are used to describe various program components:

    • Round One: The 2020 PPP program established under the CARES Act
    • Round Two: The 2021 PPP program established under the Economic Aid Act
    • First Draw: A first-time PPP loan
    • Second Draw: A second PPP loan, after receiving a first draw in Round One

    Participation

    To participate through First Republic, the applying entity must have a First Republic business checking account as of December 27, 2020, when the Economic Aid Act was signed into law. Additionally, in order to receive a PPP loan, clients must also be eligible borrowers and otherwise comply with all applicable PPP requirements, and First Republic’s application processes and procedures.

    When to Apply

    Borrowers can apply for first and second draw PPP loan until March 31, 2021. Please see the sections on first and second draw loans for additional information.


    Important Information on the Small Business Administration (“SBA”) Paycheck Protection Program

    First Republic is providing this information for convenience purposes only. Applicant is responsible for determining eligibility, filling out the application, and for providing true and correct information to First Republic. First Republic is not acting as Applicant’s advisor in determining whether Applicant qualifies for a loan, whether the information Applicant provides is correct, or otherwise. That is Applicant’s responsibility. First Republic and the SBA are relying on Applicant, as the borrower, to determine whether Applicant qualifies and whether the calculations and information provided is accurate and complete. While the headings and information included here are based on the applicable PPP regulations, such headings and information are provided for convenience purposes only. Applicant is solely responsible for its use of this information and ensuring that it complies with the PPP rules and regulations.

    The SBA is making the PPP loans available on a “first-completed, first-served” basis. Given the strong expected demand, and uncertainties with the SBA process, documentation requirements and program requirements, there may be delays in processing your application or the disbursement of funding upon application approval. Delays in processing your application may also arise in the event that the SBA issues one or more hold codes or compliance check error messages in connection with your application or any first round loan you received (collectively, “hold code issues”). All hold code issues must be resolved to First Republic’s and the SBA’s satisfaction; and, if your application is subject to any hold code issues, you must respond to all requests for additional information from First Republic and/or the SBA prior to your application being approved and prior to the related loan being disbursed.

    First Republic is not committing to lend these funds, and First Republic cannot guarantee applications to the PPP will be accepted by the SBA, that any applicable hold code issues will be resolved, or that there will be adequate government funding to serve such strong expected demand. First Republic also cannot guarantee subsequent forgiveness of any loan amounts, which is subject to the PPP regulations and SBA approval.

    In addition to making PPP loans directly, First Republic anticipates referring clients to one or more partners. In the event of any such referral, the partners (and not First Republic) will be solely responsible for determining your eligibility for a PPP loan, for resolving any hold code issues, and all further actions with respect to any PPP loan (including application processing, origination, funding, servicing and forgiveness) will be the sole responsibility of the partners. First Republic makes no representation that any partner will have the capacity to make a PPP loan to you, and First Republic shall have no liability to you in the event that you are not able to obtain a PPP loan before the further amounts appropriated by Congress to the PPP loan program are depleted.

    Neither First Republic nor any of the partners has analyzed or assessed any matters relating to your eligibility for a PPP loan or the amount of any PPP loan for which you may be eligible. Your referral to the partners is not a guaranty that you are eligible for a PPP loan or that you will receive a PPP loan from any of the partners or otherwise.

    First Republic will not apply for a PPP loan for you, and the referral to the partners does not constitute an application for a PPP loan. You are solely responsible for complying with the processes, procedures and requirements of the partners with respect to your PPP loan application.

    If the SBA does not forgive your PPP loan in whole or in part, for whatever reason, you will remain responsible to repay the principal and interest on the loan or any part thereof that is not forgiven. 

    Any PPP loan made to you is subject in all respects to applicable legislation and the requirements, rules, regulations, procedures and guidance concerning the PPP promulgated by the SBA and other regulators (PPP Regulations). The PPP Regulations are subject to regulatory uncertainty and may change from time to time. You are required to comply with and be bound by all PPP Regulations in all respects, including with respect to permitted uses of PPP loan proceeds and requirements applicable to loan forgiveness.

    First Republic is not acting as your advisor in determining whether you qualify for a PPP loan or whether the information you may provide or the certifications that you may make are correct. That is your responsibility. You should consult with your own legal, tax, financial and other advisors regarding the PPP regulations, the PPP loan and forgiveness of the PPP loan.

    First Republic shall have no liability to you, the Partners or any other person relating to any PPP loan made to you, any decision to not make a PPP loan to you or otherwise with respect to any forgiveness or servicing of any PPP loan that may be made to you; and you release First Republic from all such liabilities.

  • First Draw Eligibility and Potential Loan Amounts

    According to the latest information available, which is subject to change, the following entities may be eligible for first draw PPP loans:

    • Sole proprietors, independent contractors, and self-employed persons
    • Eligible small business concerns that meet SBA’s size standards (either the industry size standard or the alternative size standard)
    • Eligible businesses, 501(c)(3) non-profit organizations, 501(c)(19) veterans organizations, or tribal business concerns (sec. 31(b)(2)(C) of the Small Business Act) with 500 or fewer employees
    • 501(c)(6) non-profit organizations, housing cooperatives and certain destination marketing organizations with not more than 300 employees
    • Businesses with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

    In addition, first draw applicants must: 

    • Have been in operations as of February 15, 2020 and continue to be in operation.
    • Certify in good faith that a PPP loan is necessary in order to support ongoing operations due to current economic uncertainty.

    The maximum loan amount for first draw PPP Loans remains the lesser of $10 million or 2.5 times an organization’s average monthly payroll cost for 2019 or 2020. Please work with your tax, accounting and/or legal advisor(s) to ensure supporting files and calculations satisfy all SBA requirements.

    Application and Origination Process

    Clients should work with their tax, legal and accounting advisors to understand their eligibility for a first draw loan and to prepare documentation that will help support their eligibility. 

    If you’re a First Republic client who meets the latest eligibility requirements and would like to receive timely updates from First Republic about our process for first draw PPP loans, please complete this questionnaire at your earliest convenience. 

    We kindly ask that you refrain from sending any forms, applications or documents to your banker at this time. Clients will be guided by our dedicated First Republic PPP Team for your online application process.

    Forgiveness

    According to the SBA, first draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

    • Employee and compensation levels are maintained (or applicable safe harbors are satisfied).
    • The loan proceeds are spent on payroll costs and other eligible expenses.
    • At least 60 percent of the proceeds are spent on payroll costs.
    • The borrower otherwise complies with all of the requirements of the PPP relating to loan forgiveness.

    The forgiveness process remains subject to further clarification by the SBA. Furthermore, if the SBA does not forgive a PPP loan in whole or in part, for whatever reason, you will be responsible for repaying the principal and interest on the loan(s) or any part thereof that is not forgiven. Please continue to check for program and eligibility updates from the U.S. Treasury Department and Small Business Administration.

    Application Resources

    The following resources are designed to provide information to help you prepare for submitting your application and supporting documentation.

    Further Considerations

    General considerations:

    • Interested borrowers are responsible for determining that they are eligible under all applicable PPP rules, including the SBA’s regulations, guidance and standard operating procedures. The SBA’s affiliation rules may apply in determining your eligibility.
    • The above information is not a complete list or summary of all eligibility rules and requirements. Interested borrowers are responsible for reviewing and analyzing the SBA regulations, guidance and operating procedures carefully to assess whether they are eligible for a first draw PPP loan.
    • Please be mindful that you are making attestations to the federal government: 
      • that you are eligible under program rules (including rules regarding real estate businesses, hedge funds and private equity firms, affiliation, access to liquidity, publicly traded entities etc.)
      • that this loan request is necessary to support your ongoing operations due to current economic uncertainty
      • that the information, including the attestations above, are true and correct
    • Knowingly making a false certification in the PPP application is punishable under the law. If applicant has incorrectly made any certification in a pending or accepted loan application, applicant must withdraw its application or cancel its PPP loan, as applicable.
    • We anticipate the SBA will continue its current process of making loan information public pursuant to its Freedom of Information Act (FOIA) process. This information may include names of the borrowers (and their officers, directors, stockholders or partners) and the amount of the loan.

    Considerations for real estate businesses:

    • The SBA has confirmed that certain real estate businesses are ineligible for PPP loans, including those primarily engaged in (a) subdividing real property and developing it for resale, (b) owning or purchasing real estate and leasing it for any purpose, and (c) apartment buildings and other residential facilities (other than nursing homes, assisted living facilities and hotels and eligible housing cooperatives). 
    • In addition, the SBA has confirmed that property management companies that own interests in real estate are also not eligible.
    • However, if an applicant is in the real estate industry and is primarily engaged in providing services, like property management or brokering leases, without also owning those properties for which those services are provided, they are likely eligible.

    Considerations for nonprofit organizations:

    • Eligible nonprofits include 501(c)(3) organizations, 501(c)(6) organizations, 501(c)(19) veterans organizations, and tribal business concerns. Nonprofit organizations that are not tax-exempt under IRC sections 501(c)(3) or 501(c)(19), such as trade associations, advocacy organizations, unions, and social clubs, are not eligible.

    Considerations for venture or private equity backed businesses:

    • Small businesses are generally defined as business concern with no more than 500 employees, however, the SBA’s “affiliation” rules require that an applying business aggregate employees of any affiliates to its total. If a venture or private equity fund is deemed to be affiliated with the business applying, all businesses owned by such fund may be aggregated with the applying businesses employee count.

    Considerations for publicly-traded companies:

    • Publicly-traded companies are not eligible for PPP loans. 

    Considerations for hedge funds, venture capital firms and private equity firms:

    • Hedge funds, venture capital firms and private equity firms are not eligible to receive a PPP loan.

    Important Information on the Small Business Administration (“SBA”) Paycheck Protection Program

    First Republic is providing this information for convenience purposes only. Applicant is responsible for determining eligibility, filling out the application, and for providing true and correct information to First Republic. First Republic is not acting as Applicant’s advisor in determining whether Applicant qualifies for a loan, whether the information Applicant provides is correct, or otherwise. That is Applicant’s responsibility. First Republic and the SBA are relying on Applicant, as the borrower, to determine whether Applicant qualifies and whether the calculations and information provided is accurate and complete. While the headings and information included here are based on the applicable PPP regulations, such headings and information are provided for convenience purposes only. Applicant is solely responsible for its use of this information and ensuring that it complies with the PPP rules and regulations.

    The SBA is making the PPP loans available on a “first-completed, first-served” basis. Given the strong expected demand, and uncertainties with the SBA process, documentation requirements and program requirements, there may be delays in processing your application or the disbursement of funding upon application approval. Delays in processing your application may also arise in the event that the SBA issues one or more hold codes or compliance check error messages in connection with your application or any first round loan you received (collectively, “hold code issues”). All hold code issues must be resolved to First Republic’s and the SBA’s satisfaction; and, if your application is subject to any hold code issues, you must respond to all requests for additional information from First Republic and/or the SBA prior to your application being approved and prior to the related loan being disbursed.

    First Republic is not committing to lend these funds, and First Republic cannot guarantee applications to the PPP will be accepted by the SBA, that any applicable hold code issues will be resolved, or that there will be adequate government funding to serve such strong expected demand. First Republic also cannot guarantee subsequent forgiveness of any loan amounts, which is subject to the PPP regulations and SBA approval.

    In addition to making PPP loans directly, First Republic anticipates referring clients to one or more partners. In the event of any such referral, the partners (and not First Republic) will be solely responsible for determining your eligibility for a PPP loan, for resolving any hold code issues, and all further actions with respect to any PPP loan (including application processing, origination, funding, servicing and forgiveness) will be the sole responsibility of the partners. First Republic makes no representation that any partner will have the capacity to make a PPP loan to you, and First Republic shall have no liability to you in the event that you are not able to obtain a PPP loan before the further amounts appropriated by Congress to the PPP loan program are depleted.

    Neither First Republic nor any of the partners has analyzed or assessed any matters relating to your eligibility for a PPP loan or the amount of any PPP loan for which you may be eligible. Your referral to the partners is not a guaranty that you are eligible for a PPP loan or that you will receive a PPP loan from any of the partners or otherwise.

    First Republic will not apply for a PPP loan for you, and the referral to the partners does not constitute an application for a PPP loan. You are solely responsible for complying with the processes, procedures and requirements of the partners with respect to your PPP loan application.

    If the SBA does not forgive your PPP loan in whole or in part, for whatever reason, you will remain responsible to repay the principal and interest on the loan or any part thereof that is not forgiven. 

    Any PPP loan made to you is subject in all respects to applicable legislation and the requirements, rules, regulations, procedures and guidance concerning the PPP promulgated by the SBA and other regulators (PPP Regulations). The PPP Regulations are subject to regulatory uncertainty and may change from time to time. You are required to comply with and be bound by all PPP Regulations in all respects, including with respect to permitted uses of PPP loan proceeds and requirements applicable to loan forgiveness.

    First Republic is not acting as your advisor in determining whether you qualify for a PPP loan or whether the information you may provide or the certifications that you may make are correct. That is your responsibility. You should consult with your own legal, tax, financial and other advisors regarding the PPP regulations, the PPP loan and forgiveness of the PPP loan.

    First Republic shall have no liability to you, the Partners or any other person relating to any PPP loan made to you, any decision to not make a PPP loan to you or otherwise with respect to any forgiveness or servicing of any PPP loan that may be made to you; and you release First Republic from all such liabilities.

  • Second Draw Eligibility and Potential Loan Amounts

    According to the latest information available, which is subject to change, borrowers will have to fulfill the following (and other) PPP requirements in order to be eligible for a Second Draw loan under the PPP:

    • Be an eligible business concern, nonprofit organization, self-employed individual, sole proprietor, independent contractor or other eligible entity
    • Have been in operation as of February 15, 2020 and continue to be in operation
    • Employ 300 or fewer employees (the SBA’s affiliate rules apply when calculating total employees, subject to certain exceptions noted in the Economic Aid Act and the PPP rules implemented by the SBA)
    • Demonstrate a 25 percent decline in gross revenue over applicable measurement periods. For loans of $150,000 and under, no supporting documentation is required at the time of application to support the revenue decline condition. Such documentation is required on or before borrower applies for forgiveness (or is otherwise requested by the SBA). For loans greater than $150,000, supporting documents acceptable to the SBA are required with the application in order to support the revenue decline condition.
    • Not be a business primarily engaged in political or lobbying activities, a business with certain connections to the People’s Republic of China or an ineligible business under 13 CFR §120.110 (other than nonprofit organizations and certain religious organizations)
    • Certify in good faith that a PPP loan is necessary in order to support ongoing operations due to current economic uncertainty (see below for additional eligibility considerations)
    • Were eligible for a Round One loan, received a Round One loan, and used the full amount of that loan on eligible expenses before the Second Draw loan is disbursed (and we note that eligibility for the Round One loan will be reconfirmed in connection with our review of Second Draw applications)

    Eligible borrowers that satisfy the forgoing and other applicable PPP requirements (including as may be further implemented, supplemented or clarified by the SBA) may apply for a maximum loan amount equal to the lesser of $2 million or 2.5 times average monthly payroll as calculated over applicable measurement periods (or for restaurants, hotels or other NAICS Code 72 businesses, 3.5 times the average monthly payroll as calculated over applicable measurement periods). If a client received a Round One loan with First Republic, is eligible for a Second Draw loan, and chooses to rely on 2019 payroll figures (rather than 2020), then our First Republic client need not resubmit the same 2019 payroll documentation, unless otherwise requested or required by First Republic.

    According to current SBA guidance, if a client’s outstanding PPP loan is under review by the SBA, the borrower will be unable to receive an SBA loan number until the forgiveness review is complete and resolved. Please also see our PPP Forgiveness Resources Page with relevant information on that process.

    The forgiveness process for Second Draw loans remains subject to further clarification by the SBA. Furthermore, if the SBA does not forgive a Round One or Round Two PPP loan in whole or in part, for whatever reason, you will be responsible for repaying the principal and interest on the loan(s) or any part thereof that is not forgiven. Please continue to check for program and eligibility updates from the U.S. Treasury Department and Small Business Administration.

    Application and Origination Process

    The application and origination process will be different than Round One. Clients should work with their tax, legal and accounting advisors now to understand their eligibility for a Second Draw loan and to prepare documentation that will help support their eligibility. 

    If you’re a First Republic client who meets the latest eligibility requirements and would like to receive timely updates from First Republic about our upcoming process for the Second Round of PPP loans, please complete this questionnaire at your earliest convenience.

    We kindly ask that you refrain from sending any forms, applications or documents to your banker at this time. Clients will be guided by our dedicated First Republic PPP Team for your online application process.

    Application Resources

    The following resources are designed to provide information to help you prepare for submitting your application and supporting documentation.


    Further Considerations

    General considerations:

    • Interested borrowers are responsible for determining that they are eligible under all applicable PPP rules, including the SBA’s regulations, guidance and standard operating procedures. The SBA’s affiliation rules may apply in determining your eligibility.
    • The above information is not a complete list or summary of all eligibility rules and requirements. Interested borrowers are responsible for reviewing and analyzing the SBA regulations, guidance and operating procedures carefully to assess whether they are eligible for a Round 2 PPP loan.
    • Please be mindful that you are making attestations to the federal government: 
    • that you are eligible under program rules (including rules regarding real estate businesses, hedge funds and private equity firms, affiliation, access to liquidity, publicly traded entities etc.)
    • that this loan request is necessary to support your ongoing operations due to current economic uncertainty
    • that the information, including the attestations above, are true and correct
    • Knowingly making a false certification in the PPP application is punishable under the law. If applicant has incorrectly made any certification in a pending or accepted loan application, applicant must withdraw its application or cancel its PPP loan, as applicable.
    • We anticipate the SBA will continue its current process of making loan information public pursuant to its Freedom of Information Act (FOIA) process. This information may include names of the borrowers (and their officers, directors, stockholders or partners) and the amount of the loan.
    • Please be aware that PPP lenders have received messages from the SBA stating that certain submitted applications are on hold. These holds may relate to a variety of scenarios, and would require documentation by the borrower to evidence the SBA’s identified error has been resolved. This additional process may delay the SBA from issuing such borrowers with an SBA loan number. In the event that your application becomes subject to a hold, you are encouraged to respond to all supplemental information requests promptly, as your application may not be processed until the SBA resolves the related hold issues.
       

    Considerations for real estate businesses:

    • The SBA has confirmed that certain real estate businesses are ineligible for PPP loans, including those primarily engaged in (a) subdividing real property and developing it for resale, (b) owning or purchasing real estate and leasing it for any purpose, and (c) apartment buildings and other residential facilities (other than nursing homes, assisted living facilities and hotels).
    • In addition, the SBA has confirmed that property management companies that own interests in real estate are also not eligible.
    • However, if an applicant is in the real estate industry and is primarily engaged in providing services, like property management or brokering leases, without also owning those properties for which those services are provided, they are likely eligible.

    Considerations for nonprofit organizations:

    • Eligible nonprofits include 501(c)(3) organizations, 501(c)(19) veterans organizations, and tribal business concerns. Nonprofit organizations that are not tax-exempt under IRC sections 501(c)(3) or 501(c)(19), such as trade associations, advocacy organizations, unions, and social clubs, are not eligible.

    Considerations for venture or private equity backed businesses:

    • The SBA’s “affiliation” rules require that an applying business aggregate employees of any affiliates to its total. If a venture or private equity fund is deemed to be affiliated with the business applying, all businesses owned by such fund may be aggregated with the applying businesses employee count.

    Considerations for publicly-traded companies:

    • Publicly-traded companies are not eligible for PPP loans.

    Considerations for hedge funds, venture capital firms and private equity firms:

    • Hedge funds, venture capital firms and private equity firms are primarily engaged in investment or speculation, and such businesses are therefore ineligible to receive a PPP loan.

    Important Information on the Small Business Administration (“SBA”) Paycheck Protection Program

    First Republic is providing this information for convenience purposes only. Applicant is responsible for determining eligibility, filling out the application, and for providing true and correct information to First Republic. First Republic is not acting as Applicant’s advisor in determining whether Applicant qualifies for a loan, whether the information Applicant provides is correct, or otherwise. That is Applicant’s responsibility. First Republic and the SBA are relying on Applicant, as the borrower, to determine whether Applicant qualifies and whether the calculations and information provided is accurate and complete. While the headings and information included here are based on the applicable PPP regulations, such headings and information are provided for convenience purposes only. Applicant is solely responsible for its use of this information and ensuring that it complies with the PPP rules and regulations.

    The SBA is making the PPP loans available on a “first-completed, first-served” basis. Given the strong expected demand, and uncertainties with the SBA process, documentation requirements and program requirements, there may be delays in processing your application or the disbursement of funding upon application approval. Delays in processing your application may also arise in the event that the SBA issues one or more hold codes or compliance check error messages in connection with your application or any first round loan you received (collectively, “hold code issues”). All hold code issues must be resolved to First Republic’s and the SBA’s satisfaction; and, if your application is subject to any hold code issues, you must respond to all requests for additional information from First Republic and/or the SBA prior to your application being approved and prior to the related loan being disbursed.

    First Republic is not committing to lend these funds, and First Republic cannot guarantee applications to the PPP will be accepted by the SBA, that any applicable hold code issues will be resolved, or that there will be adequate government funding to serve such strong expected demand. First Republic also cannot guarantee subsequent forgiveness of any loan amounts, which is subject to the PPP regulations and SBA approval.

    In addition to making PPP loans directly, First Republic anticipates referring clients to one or more partners. In the event of any such referral, the partners (and not First Republic) will be solely responsible for determining your eligibility for a PPP loan, for resolving any hold code issues, and all further actions with respect to any PPP loan (including application processing, origination, funding, servicing and forgiveness) will be the sole responsibility of the partners. First Republic makes no representation that any partner will have the capacity to make a PPP loan to you, and First Republic shall have no liability to you in the event that you are not able to obtain a PPP loan before the further amounts appropriated by Congress to the PPP loan program are depleted.

    Neither First Republic nor any of the partners has analyzed or assessed any matters relating to your eligibility for a PPP loan or the amount of any PPP loan for which you may be eligible. Your referral to the partners is not a guaranty that you are eligible for a PPP loan or that you will receive a PPP loan from any of the partners or otherwise.

    First Republic will not apply for a PPP loan for you, and the referral to the partners does not constitute an application for a PPP loan. You are solely responsible for complying with the processes, procedures and requirements of the partners with respect to your PPP loan application.

    If the SBA does not forgive your PPP loan in whole or in part, for whatever reason, you will remain responsible to repay the principal and interest on the loan or any part thereof that is not forgiven. 

    Any PPP loan made to you is subject in all respects to applicable legislation and the requirements, rules, regulations, procedures and guidance concerning the PPP promulgated by the SBA and other regulators (PPP Regulations). The PPP Regulations are subject to regulatory uncertainty and may change from time to time. You are required to comply with and be bound by all PPP Regulations in all respects, including with respect to permitted uses of PPP loan proceeds and requirements applicable to loan forgiveness.

    First Republic is not acting as your advisor in determining whether you qualify for a PPP loan or whether the information you may provide or the certifications that you may make are correct. That is your responsibility. You should consult with your own legal, tax, financial and other advisors regarding the PPP regulations, the PPP loan and forgiveness of the PPP loan.

    First Republic shall have no liability to you, the Partners or any other person relating to any PPP loan made to you, any decision to not make a PPP loan to you or otherwise with respect to any forgiveness or servicing of any PPP loan that may be made to you; and you release First Republic from all such liabilities.

  • Round One Loan Forgiveness

    Overview

    The Economic Aid Act was signed into law on December 27 and includes certain changes to the forgiveness process.  

    • For loans of $150,000 and under, the Act provides for a simplified forgiveness application, requiring no supporting documentation to be submitted (unless otherwise requested by the SBA). The new streamlined application is expected to be made available in January 2021.  
    • Additionally, according to current SBA guidance, if a client’s forgiveness application under their Round One First Draw loan is under SBA review for forgiveness, or the SBA has information indicating that a borrower may have been ineligible for a loan, the borrower will be unable to receive a SBA loan number for a Second Draw loan until the forgiveness review is complete and resolved.  
    • We strongly encourage you to work closely with your tax, legal and accounting advisors to weigh the benefits of waiting to complete your loan forgiveness application until the SBA issues its new guidelines and application, and lenders can implement them.

    Forgiveness Application Resources

    If you choose to move forward with your forgiveness application at this time, the following resources and information have been designed to help you prepare for submitting your forgiveness application and supporting documentation.

    • Knowledge Center: Detailed overview of the Paycheck Protection Program and loan forgiveness process, answers to frequently asked questions, and more.
    • Borrower Reference Guide: Step-by-step instructions and best practices for completing your online application in the Loan Forgiveness Portal.
    • Documentation Considerations: For C-Corporations, S-Corporations, LLCs taxed as Corporations and Nonprofit Organizations
    • Documentation Considerations: For Sole Proprietors, Self-Employed Individuals, Independent Contractors, Partnerships and LLCs taxed as Sole Proprietors or Partnership

    These resources are designed to offer considerations based on the SBA’s loan forgiveness applications and the forgiveness guidelines for the Paycheck Protection Program as currently understood. It is very important to take note that the SBA may issue further guidance with respect to loan forgiveness. 

    Borrowers must continue to consult with their tax, accounting and legal advisors while completing the Loan Forgiveness Application and all related schedules and worksheets. First Republic is providing informational resources to help support clients through the process, but cannot provide tax, accounting or legal advice. Please see below for other important information regarding your PPP loan and loan forgiveness.

    First and Second Draw Loan Forgiveness

    The forgiveness process for First and Second Draw loans remains subject to further clarification by the SBA. Furthermore, if the SBA does not forgive a PPP loan in whole or in part, for whatever reason, you will be responsible for repaying the principal and interest on the loan(s) or any part thereof that is not forgiven. Please continue to check for program and eligibility updates from the U.S. Treasury Department and Small Business Administration.


    Important Information on the Small Business Administration (“SBA”) Paycheck Protection Program

    First Republic cannot guarantee forgiveness of your PPP loan, and loan forgiveness is subject in all respects to the Loan Forgiveness Application and PPP regulations. Forgiveness of your PPP loan is only available for eligible payroll costs and other uses of proceeds during the applicable covered period under the PPP regulations. Forgiveness of your PPP loan is not automatic, and you must request it. You are required to provide the completed Loan Forgiveness Application and documentation in accordance with the Loan Forgiveness Application and PPP regulations and certify that the forgiveness amount qualifies under the PPP regulations, in addition to complying with such further processes, procedures and requirements that First Republic may require in connection with the PPP loan, permitted uses of proceeds and forgiveness of such loan.

    First Republic will not apply for loan forgiveness for you, and you are responsible for understanding the PPP regulations applicable to loan forgiveness. First Republic will, through this online portal, intake your Loan Forgiveness Application and supporting documentation and confirm your application is complete before requesting approval from the SBA on your behalf. The actual processes for loan forgiveness applications have not been finalized and are subject to change; and you may be required to resubmit your Loan Forgiveness Application and supporting documentation in the future in order to comply with any changes to the application process and procedures. You are required to submit any and all information, consents, forms and documentation that First Republic requests as a condition to First Republic submitting an application for forgiveness. First Republic is not advising you on your eligibility for your PPP loan, the Loan Forgiveness Application, the PPP regulations, loan forgiveness or any other aspect of the PPP. It is your sole responsibility to determine and certify as to your eligibility for loans and loan forgiveness and compliance with the Loan Forgiveness Application and PPP regulations.

    You will remain responsible under the PPP loan for any amounts not forgiven, for whatever reason. The SBA and First Republic will rely upon your information and certifications in all respects. If any such information or certification is not correct, or you do not qualify for the loan or loan forgiveness, you remain liable to First Republic (or any subsequent holder of your note) and the SBA for repayment of the loan.

    You further acknowledge and agree that you have not relied on First Republic in connection with your review, analysis or implementation of the PPP regulations or Loan Forgiveness Application, including with respect to permitted uses of PPP loan proceeds or any determination or decision in connection with the forgiveness of a PPP loan; you have reviewed the PPP regulations and Loan Forgiveness Application and consulted with your own legal, tax, financial and other advisors regarding the PPP regulations, the PPP loan and forgiveness of the PPP loan; you and your affiliates will comply with all PPP regulations applicable to the PPP loan, including with respect to permitted uses of loan proceeds and forgiveness of such loan.

    You agree to release, indemnify and hold harmless First Republic from and against all claims, costs, expenses, damages and liabilities (including reasonable attorney’s fees) that may be instituted or asserted against or incurred by First Republic in connection with or arising out your PPP loan, including, without limitation, with respect to any determinations, denials or actions taken or not taken in respect of forgiveness of your PPP loan.

    Any information provided herein reflects our understanding of the Loan Forgiveness Application and PPP regulations as of the date hereof. The Loan Forgiveness Application and PPP regulations are subject to change and uncertainty as to application. First Republic has no obligation to update information or to provide you any supplemental information for any changes made to or further guidance provided with respect to the Loan Forgiveness Application or PPP regulations after the date hereof or otherwise. First Republic is providing any information for convenience purposes only. You are responsible for determining eligibility for the PPP loan and forgiveness, filling out the Loan Forgiveness Application and providing true and correct information to First Republic. You are solely responsible for your use of any information and ensuring that you comply with the Loan Forgiveness Application and PPP regulations.

    First Republic is not acting as your advisor in determining whether you qualify for a PPP loan or for loan forgiveness, whether the information you have previously provided to First Republic or provide with your Loan Forgiveness Application is correct, or otherwise. That is your responsibility. First Republic and the SBA are relying on you, as the borrower, to determine whether you qualify for the loan or for loan forgiveness and whether the calculations and information provided are accurate and complete. While any information included here is based on the Loan Forgiveness Application and the applicable PPP regulations, such information is provided for convenience purposes only.