Business Loans

First Draw PPP $150,000 and Under Loan – New, Easier Form Now Available

The three existing forgiveness applications have all been updated to incorporate changes made in the Economic Aid Act. Most notably, the new SBA 3508S is the forgiveness application form to be used for PPP loans of $150,000 or less. The new versions of SBA 3508, 3508EZ, and 3508S can be found here (note: scroll to the bottom of the page). 

As a reminder, an eligible borrower who received a loan of $150,000 or less should use the SBA Form 3508S and shall not, at the time of its application for loan forgiveness, be required to submit any application or documentation in addition to the certification and information required by section 7A(l)(1)(A) of the Small Business Act. Remember to keep it simple for yourself by following the timesaving tips below.

Second Draw PPP Loan Update

Please submit a financial statement(s) that substantiates a 25% or greater revenue decline from a 2019 quarter to the same quarter of 2020. Regardless of loan size, please submit this with your Second Draw PPP application. Also, please state “I attest to the accuracy of this financial statement,” sign, and date every page. In addition, be sure to initial where indicated as well.

Link to PPP Second Draw Application Form here.


Timesaving Tips – PPP Forgiveness Application

As you prepare to complete your SBA PPP Loan Forgiveness Application, we’d like to share the following quick tips that will expedite your preparation and processing time:
 
  • Use the 24-week Covered Period – Take full advantage of the SBA’s maximum allowed window, if needed. 

  • Submit Your Application ASAP – You do not need to wait until the end of the 24-week covered period. Once you can document enough qualified expense to obtain 100% forgiveness, turn in your application and avoid delays from the expected last minute rush.  

  • Keep it Simple – Don’t work harder than needed. While the PPP rules do allow for a variety of qualified expenses, we recommend using only your payroll numbers to document your forgiveness amount, avoiding the tedious record keeping and computations necessary to use lease, interest, and utility expenses. You don’t need to win by seven touchdowns!

  • Provide Complete Payroll Documentation
    • Payroll Rosters – Please include all payroll rosters with your third party payroll reports, showing each employee, used in your calculations. Alternatively, you can include bank statements or other detailed records.
    • Ineligible Payroll Amounts – Please mark and exclude ineligible compensation. 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. For an 8-week Covered Period, that total is capped at $15,385 per employee. For a 24-week Covered Period, that total is capped at $46,154 per employee. If a 24-week Covered Period applies, for any owner-employee or self-employed individual/general partner, salary is capped at $20,833 per individual.

  • Neatness Counts – Taking these extra steps will ensure prompt review and approval of your application by us and the SBA.
    • Show Your Work – Please include a summary sheet of your final numbers, with careful cross-references to your source documentation. Show clearly how each figure was calculated, including copies of adding machine tapes, if possible.  
    • Submit an Orderly Package – Take time to put your paperwork in a logical, easy-to-follow packet, with supporting documents in order of how they appear on the application. 

SBA & Treasury Announce Simpler PPP Forgiveness Applications for Loans Less than $50,000

New application available to streamline the PPP process and allow lenders to process forgiveness more quickly.

Customers will still need to submit forgiveness data to the Bank with the new form (link below). We will check the application and move it on to the SBA more quickly, as we are no longer required to review the data. Remember to keep it simple by following the tips above. Customers should maintain forgiveness records for a period of six years.

Please click the corresponding links for details.

FORM
INSTRUCTIONS
FORGIVENESS INTERIM FINAL RULES


PPP Loan Forgiveness Portal

On Monday, August 10th, the SBA opened up the PPP Forgiveness Portal to allow us to formally submit PPP loans to the SBA for forgiveness. Per a revision by the SBA, you may now submit your Forgiveness Application prior to the full 24-weeks passing provided you meet certain criteria. Please see page three for details:

https://home.treasury.gov/system/files/136/PPP–IFR–Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule.pdf

If you have reached a level of payroll, rent and utilities that would grant you full forgiveness, we encourage you to submit your application prior to the 24-week mark, as we fully anticipate a bottleneck at that time.

Which Form Do I Use?
To determine which form to use, click on the EZ Loan Forgiveness Application Instructions for Borrowers link below. Review the first section to determine what form (Form 3508EZ OR 3508) fits your situation. If you wish to proceed, please use the Forgiveness Application links provided below.

For reference, here is a sample PPP Forgiveness Application detailing the proper order for submission to help you complete, organize and submit your PPP Forgiveness Application. The supporting documentation needs to be submitted in the manner shown in the sample whether you are using the EZ or Standard Application Form.

Cornerstone PPP Forgiveness Instructions and Sample

In addition, the SBA released a FAQ on PPP loan forgiveness that include guidance on issues such as covered utility payments and eligible electricity supply charges.

Standard Loan Forgiveness Application Instructions for Borrowers
EZ Loan Forgiveness Application Instructions for Borrowers

The Paycheck Protection Program is providing small businesses with the resources they need to maintain their payroll, hire back employees who may have been laid off, and cover applicable overhead. For more information: https://disasterloan.sba.gov/ela/.


SBA Disaster Assistance

The SBA declared Wisconsin eligible for disaster assistance. Here is the link to the application portal: https://disasterloan.sba.gov/ela/.

Also, below is a link to Wisconsin’s Small Business Development Center containing helpful information for all of the programs available in the state at this moment: https://wisconsinsbdc.org/services/covid-19/.


“Taking care of our customers and looking out for the best interest of our community is the way we do business.”
Paul Foy, president, Cornerstone Community Bank


Is Your Business Ready to Graduate…
from the SBA?

The SBA was there to help get you started. But now that you’ve worked hard building a successful business, it’s time to graduate. Let Cornerstone Community Bank help you shed those SBA fees and “floating” high interest rates. Our conventional financing options could save you thousands!

Contact the Cornerstone commercial lenders; they are ready to take you to the next level.

 

 

Menomonee Falls
Chris Zirbes
Direct: 262.437.7230; Cell: 262.777.0936

Michele Conrad
Direct: 262.437.7205; Cell: 262.888.0221

Grafton
Todd Novotny (NMLS# 553933)
Direct: 262.546.1129; Cell: 262.339.1929

 

Financing to Fit Every Need

We understand your small business because we are a small business!

Cornerstone Community Bank is committed to serving the needs of small and medium-sized businesses in our communities. We understand small business because we are a small business. As a locally-owned company we recognize the challenges and opportunities that present themselves on a daily basis to the small business owner. That’s why when your opportunity presents itself, we respond quickly–providing you with answers and solutions to help your business become more profitable.

We offer lines of credit to provide working capital, term loans, commercial real estate loans, letters of credit and loans for land development. We structure the loan to fit the needs of each individual business.


SBA Preferred Lender

Cornerstone Community Bank is proud to be a Small Business Administration (SBA) Preferred Lender. In February 2004, Cornerstone Bank was admitted by the United States Small Business Administration (SBA) into their Preferred Lender Program (PLP Lender). This designation is given to the SBA’s best lenders and it lets us provide our SBA loan customers with faster approvals and processing. Also, the SBA has presented us with its Volume Lender Award in recognition of the large number of SBA loans we facilitated.

“We are the only small, neighborhood bank with its headquarters in Ozaukee County that has achieved preferred lender status,” stated Cornerstone Community Bank President, Paul Foy. “What that means to our small business loan customers is fast, personal service. Cornerstone Community Bank makes all the loan decisions in-house so that things like character and history are considered. When timing is critical and there is a collateral shortfall, this is a huge benefit for our small business clients!”

Stop in and talk with Chris Zirbes or Michele Conrad in Menomonee Falls, or Todd Novotny (NMLS#553933) in Grafton, about your business loan needs. We make the decisions, we understand the circumstances, you get the prompt answers and the personalized service you deserve.

 

                    

     

          Chris Zirbes                              Michele Conrad                                Todd Novotny

          262.437.7230                             262.437.7205                                      262.546.1129

 


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