New legislation signed into law on April 24 provides an additional $310 billion to the Paycheck Protection Program (PPP). The SBA has begun processing new applications, and we are submitting complete applications to the SBA for our clients as quickly as possible.
If current funding is no longer available, we expect we will continue to process applications on behalf of our clients in anticipation of additional funding becoming available, unless we receive different guidance from the government.
Our clients who have already submitted an application do not need to re-file a new application with us. If more information is required for your specific application, we will be in contact with you.
In the absence of a pre-loan approval written agreement between the agent and Bank of America, Bank of America does not pay fees or other compensation to agents who represent or assist borrowers in applying for loans through the Paycheck Protection Program.
Frequently Asked Questions
What is the Paycheck Protection Program (PPP)?
The Paycheck Protection Program is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow. For more information on the Paycheck Protection Program, please visit the U.S. Treasury and SBA websites.
What are the eligibility requirements under the provisions of the Paycheck Protection Program?
The Small Business Administration (SBA), in consultation with the Department of the Treasury, continues to provide additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP) in the form of updated Frequently Asked Questions.
It is your obligation to be informed of the latest guidance from the Treasury and SBA related to the Paycheck Protection Program. This guidance can be found at Small Business Administration website, U.S. Treasury's website on Assistance for Small Businesses and the U.S. Treasury’s Frequently Asked Questions page. Program guidelines are subject to change, and we urge applicants to stay informed of evolving requirements.
For example, the Treasury published an FAQ on April 23, that Bank of America wants to bring to your attention:
From SBA Frequently Asked Questions, question 31 (inclusive of private companies)*:
“Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?”
“In addition to reviewing applicable affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere (as defined in section 3(h) of the Small Business Act), borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” Borrowers must make this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification. Lenders may rely on a borrower’s certification regarding the necessity of the loan request. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 7, 2020 will be deemed by SBA to have made the required certification in good faith.”
* per SBA FAQ #37
Does Bank of America have requirements to apply?
To service small business clients most efficiently, we are only accepting applications from those that, as of February 15, 2020, had a business deposit and business credit relationship with Bank of America or have a business deposit relationship with us and do not have a business credit or borrowing relationship with another bank.
How do I apply for a PPP loan?
Bank of America clients must use our CashPro platform or Business Online Banking Platform to apply. If you’re not currently enrolled in either of these services or have any questions about the application process, please contact your bank representative.
Will Bank of America pay fees to third-party agents who have assisted clients with the preparation of PPP loan applications?
No. In the absence of a pre-loan approval written agreement between the agent and Bank of America, Bank of America does not pay fees or other compensation to agents who represent or assist borrowers in applying for loans through the Paycheck Protection Program.
If I submitted an application but it’s still in process, do I need to refile?
If you have a loan application in process, and have not received a communication from us related to the status of your application, there is no need to refile. However, it is important for you to ensure that you have submitted all necessary documentation and additional information that you may have been asked to provide to us. If documentation or additional information is requested from us, we encourage you to provide it to us as soon as possible.
When I applied for PPP, I received a loan application number through CashPro. Does that indicate where I am in the SBA queue?
No. The loan application number from CashPro confirms only that Bank of America received your application.