INFO icon

Important Information about Coronavirus (COVID-19) LEARN MOREBranch Status

OC Register: Top Workplaces 2018, 2019
dollar sign overa blue shield

Small Business
Paycheck
Protection
Program*

Paycheck Protection Program
Forgiveness Application FAQs

Below you will find frequently asked questions regarding the PPP loan forgiveness application. We are updating these FAQs often. If you have a question that is not answered in the FAQs, please reach out to your PMB Relationship Manager.

EXPAND ALLCOLLAPSE ALL

  • Getting Started
    • What are the steps I need to take in the PPP Forgiveness Process?
      1. Download the Loan Forgiveness Calculation Tool from the Loan Application Portal or contact your PMB Relationship Manager.
        The Loan Forgiveness Calculation Tool workbook is a required document when applying for forgiveness and you will need to upload the completed workbook to the PPP Forgiveness Portal.
      2. Learn how to use the Loan Forgiveness Calculation Tool by watching the tutorial video at pmbank.com/forgiveness
      3. Track your expenses by updating the Loan Forgiveness Calculation Tool regularly as you make payroll, rent, utilities and other eligible payments.
        You are only required to use 60% of your forgiven amount on payroll costs but we encourage you to try to achieve full forgiveness with just payroll costs if possible. This will limit the amount of documentation that will be required for forgiveness.
      4. Scan digital copies of your eligible expense supporting documents with correct naming conventions
      5. Apply for forgiveness on the PPP Forgiveness Portal
        Your PMB Relationship Manager will send you an email to access the PPP Forgiveness Portal when it launches. You will upload your completed Loan Forgiveness Calculation Tool workbook and supporting documentation into the Portal. We will review and submit your application to the SBA within 60 days.
    • How do I access the PPP Forgiveness Portal?

      Your PMB Relationship Manager will send you a unique link to the online forgiveness portal. If you have not received it yet, please contact your PMB Relationship Manager.

      If your PPP loan is $150,000 or less, we are encouraging you to temporarily delay submitting your application until a final decision is made by Congress on the Paycheck Protection Small Business Forgiveness Act (the “Act”). If passed into law, it will streamline your forgiveness process, potentially requiring only a simple one-page attestation online or paper form. If you would like to apply for forgiveness at this time, please contact your PMB Relationship Manager to request your logon information. Otherwise, when a decision has been announced regarding the Act, your PMB Relationship Manager will contact you with your forgiveness portal logon information and details regarding the streamlined forgiveness process.

    • Why have I not received logon information to the PPP Forgiveness Portal?

      If your PPP loan is $150,000 or less, we are encouraging you to temporarily delay submitting your application until a final decision is made by Congress on the Paycheck Protection Small Business Forgiveness Act (the “Act”). If passed into law, it will streamline your forgiveness process, potentially requiring only a simple one-page attestation online or paper form. If you would like to apply for forgiveness at this time, please contact your PMB Relationship Manager to request your logon information. Otherwise, when a decision has been announced regarding the Act, your PMB Relationship Manager will contact you with your forgiveness portal logon information and details regarding the streamlined forgiveness process.

  • PPP Forgiveness Application
    • How do I access the PPP Forgiveness Portal?

      Your PMB Relationship Manager will send you a unique link to the online forgiveness portal. If you have not received it yet, please contact your PMB Relationship Manager.

      If your PPP loan is $150,000 or less, we encourage you to wait to apply for forgiveness until a decision has been made on the Paycheck Protection Program Small Business Forgiveness Act. If this is approved to pass into law, borrowers with less than $150,000 will have a streamlined forgiveness process by only requiring a simple one-page attestation form. When a decision has been announced regarding the PPP Small Business Forgiveness Act, your PMB Relationship Manager will contact you with your forgiveness portal logon information and, if passed, details regarding the streamlined forgiveness process.

    • How soon can I file my forgiveness application?

      Please refer to this chart to determine when you can file your forgiveness application.

      If your PPP loan was $150,000 or less, we are encouraging you to temporarily delay submitting your application until a final decision is made by Congress on the Paycheck Protection Small Business Forgiveness Act (the “Act”). If passed into law, it will streamline your forgiveness process, potentially requiring only a simple one-page attestation online or paper form.

    • If I have enough eligible expenses for 100% forgiveness before my covered period ends, can I apply for forgiveness before the end of the covered period?

      Maybe. If you did not have wage/salary reductions or any FTE reductions between February 15, 2020 and April 26, 2020, or those reductions have been restored, then you would be able to apply sooner. Otherwise, you will still need to wait until the end of your covered period, as you will need to calculate your Average FTE for the entire Covered Period and/or the amount of wage/salary reductions for the full Covered Period. Please refer to this chart to determine how soon you can file your forgiveness application.

    • If I’m able to in good faith document my FTE reductions in accordance with the new PPPFA safe harbors, when can I apply for forgiveness?

      You will not be able to apply for forgiveness until after December 31, 2020. The new safe harbors under the PPPFA are attestations to your inability to rehire/hire qualified employees or return to the same level of business through the period ending December 31, 2020. You won’t be able to make the necessary attestation until then.

    • Do I use the 3508 or the 3508EZ to apply for forgiveness?

      Based upon your answers to certain questions in the PPP Forgiveness Calculation Tool workbook, and when you enter information in the PPP Forgiveness Portal, you will be informed if your application will be processed using the Form 3508 or the Form 3508EZ, and if qualified for using the Form 3508EZ, you will not be required to calculate and provide certain information.

    • If I qualify for the form 3508EZ, I am asked to upload a certification. Does PMB have a template that I can use for this certification?

      No, please prepare a brief memo for your own files that details the facts that support why you qualify for the Safe Harbor (3508EZ). Since the facts will be different for every company, producing a template was not feasible.

    • When should I expect to have my loan forgiven?

      When your application has been e-signed, PMB has 60 days to file your application with the SBA. Once filed with the SBA, they have 90 days to render a decision on forgiveness.

  • Covered Period
  • Eligible Expenses
  • Payroll
  • Loan Forgiveness Calculation Tool
    • Is the Loan Forgiveness Calculation Tool mandatory to submit for forgiveness?

      Yes, completion of the Loan Forgiveness Calculation Tool is required before applying for Loan Forgiveness with PMB. You will upload the completed workbook to the PPP Forgiveness Portal as a part of your required documentation of eligible expenses. The amounts entered into the forgiveness applications (Form 3508 and Form 3508EZ) are summary/total amounts and the underlying detail input into the Loan Forgiveness Calculation Tool along with the corresponding documentation is necessary for us to perform the review of your forgiveness request required by the SBA.

    • How do I use the Loan Forgiveness Calculation Tool?

      Please watch our Loan Forgiveness Calculation Tool Demo Video for a detailed overview of the how to use the tool.

    • Where can I get the Loan Forgiveness Calculation Tool?

      Log on to the Loan Application Portal to download the Loan Forgiveness Calculation Tool or contact your PMB Relationship Manager.

    • Should I start using the calculation tool now or wait until I am ready to apply for forgiveness?

      We suggest that you update the workbook regularly as you pay your payroll, rent, mortgage and utilities. That way, when your 8 or 24 week covered period has ended, you'll have everything filled out and ready to apply for forgiveness. At the same time, you should be saving digital copies of all supporting documents. Click here for a list of eligible expense documentation requirements and how we suggest you name the digital files for uploading when it comes time to apply for forgiveness.

    • What is the “Lender PPP Loan #”?

      This is the loan number that identifies your loan in PMB’s system. You can find this loan number through PMB’s online banking platform, Business Online Banking. If you don’t use Business Online Banking, just ask your Relationship Manager for this information.

    • What is the “Top” Tab for?

      The “TOP” tab is used to enter basic identifying information, your loan information, and answer the FTE Restoration Test questions. The rest of the information on this tab is driven by what you enter on the other tabs. Your calculated forgiveness amount will show up in the Loan Forgiveness Calculation at the bottom.

    • What is the Forgiveness Reduction Analysis section on the “TOP” tab?

      The forgiveness reduction analysis determines if your forgiveness amounts will need to be reduced.

      First, is the FTE reduction test. There are several exemptions and safe harbors provided by PPP and the PPPFA that will allow you to avoid having a reduction in your forgiveness amount due to a reduction in FTE. If any of the three FTE Restoration Questions are answered with Y, the FTE reduction quotient for the calculation of your forgiveness amount will be 100% and there's no need to complete any of the FTE tabs. If you were not able to answer any of these questions with “Y”, then you will need to calculate the FTE Reduction Quotient:

      • To calculate the FTE Reduction Quotient, you will need to calculate the average FTE for at least one of three possible reference periods, and the average FTE for these three reference periods are determined by what you enter on the different FTE tabs.
      • You will also need to calculate the average FTE during your Covered Period or Alternative Payroll Covered Period on one of these FTE tabs (FTE20b).
      • If A) the average FTE during the Covered Period or the Alternative Payroll Covered Period is lower than B) the lowest calculated average FTE from the reference period(s), then the FTE reduction quotient is calculated as “A” divided by “B”.
      • If the average FTE during the Covered Period is greater than the lowest calculated average reference period FTE, then the FTE reduction quotient is 100%.

      Second, the salary reduction calculation is calculated on the Salary Red Tab and is used to enter information for eligible employees that earn less than $100,000, who had a decrease in their compensation by more than 25%, even if it has been or is planned to be restored. Eligible employees are those employees whose principal residence is in the United States.

      If you answer yes to any three of these FTE Reduction safe harbors and you have not had any salary reductions, you qualify to use the Form 3508EZ. A message will appear in this section of the “TOP” tab if this is the case.

    • What is the “File Naming” Tab for?

      The “File Naming” tab lists out the various forms of supporting documentation for the eligible expenditures and how to name the digital files for uploading when it comes time to apply for forgiveness. You can also find this information here.

    • What are the “PPP” and “PPP-A” Tabs for?

      Tabs PPP and PPP-A are the SBA Form 3508 schedules. These are populated by all the other tabs. No input from you is required in either tab. You'll use the information in these tabs when the time comes to input information into the PPP Forgiveness Portal if you are required to use the Form 3508.

    • What is the “PPP-EZ” Tab for?

      Tab PPP-EZ is the SBA Form 3508EZ. This tab is populated by all of the other tabs and no input is required from you. If you qualify to use the 3508EZ, you will only be required to enter the information on this tab into the PPP Forgiveness Portal.

    • What is the “Salary Red” Tab for?

      This tab is only used to enter information for eligible employees that earn less than $100,000, who had a decrease in their compensation by more than 25%, even if it has been or is planned to be restored. Eligible employees are those employees whose principal residence is in the United States. If you had no reduction in salary, you do not need to use this tab.

    • What are the “FTE” Tabs for?

      These tabs determine your average FTE for the three FTE reference periods defined by the SBA. The names of the corresponding FTE tabs are typed out next to the cells that they populate on the “TOP” tab to help you easily navigate the tool. You'll not need to enter anything in the FTE Tabs if you are qualified for using the 3508-EZ Form, based upon the questions asked in the “TOP” tab.

    • What are the “Payroll” Tabs for?

      The “Payroll” tabs are used to enter data for your eligible expenditures for payroll. There are three payroll tabs, A, B, and C that can be used if you have more than one payroll type. If you only use one payroll type, just use the “Payroll-A” tab.

      At the bottom of this tab, you will see your payroll allocation calculations. This calculation looks at the number of days in each of the payroll periods, as well as how many of those days are within your covered period or alternative payroll covered period to calculate the percentage of each payroll period that can be applied to forgiveness.

      The green totals from each of the payroll tabs are carried over to the “TOP” tab under total payroll and line one of the SBA Form 3508 in the PPP tab. The blue totals from each of the payroll tabs are carried over to the PPP-A tab for the corresponding line items in the Schedule A for SBA Form 3508.

    • What are the “Mortgage” Tabs for?

      The “Mortgage” tabs are used to enter data for your eligible expenditures for mortgage. This tab allows up to three mortgages to be entered. If you happen to have more than three mortgages, use the additional "Mortgage B" and "Mortgage C" tabs.

      Remember that only the interest portion of your mortgage payment is an eligible expense for forgiveness, the principal is not. Calculations will be made to determine how many days in each loan period were within your covered period. That percentage is then calculated against the interest amount only to get the mortgage amount that can be applied to forgiveness.

      At the bottom of each of these tabs, you can view the tally for your eligible mortgage interest highlighted in green. This total is carried over to the top tab under eligible mortgage interest payments, and line two of the SBA Form 3508 in the PPP tab.

    • What are the “Lease” Tabs for?

      The “Lease” tabs are used to enter data for your eligible expenditures for leases. this tab allows up to three leases to be entered. If you happen to have more than three leases, use the additional "Lease B" and "Lease C" tabs.

      Only rent from lease agreements in force before February 15th, 2020 are eligible for forgiveness.

      Calculations will be made to determine how many days in each lease period were within your covered period. That percentage is then calculated against your total rent payment to get the rental amounts that can be applied to forgiveness. At the bottom of these tabs, you can view the tally for your eligible Rent Expense highlighted in green. This total is carried over to the top tab under eligible lease rent payments, and line three of the SBA Form 3508 in the PPP tab.

    • What are the “Utility” Tabs for?

      The “Utility” tabs are used to enter data for your eligible expenditures for utilities. You can enter up to six utilities on each tab. This workbook allows up to a total of 18 utility vendor/property payments to be entered. If you happen to have more than 18 vendor/property payments, please let your banker know so that we can work with you to expand the workbook as needed.

      Calculations will be made to determine how many days in each service period were within your covered period. That percentage is then calculated against your monthly utility cost to get the utility amount that can be applied to forgiveness.

      At the bottom of this tab, you can view the tally for your eligible utility expenses highlighted in green. This total is carried over to the top tab under Schedule A, B and C respectively and line four of the SBA Form 3508 in the PPP tab.

    • On the “Payroll” tab there are spots for vacation, sick, bonus, etc. Do I need to itemize these?

      You do not need to itemize these within the workbook. However, the SBA application does require an itemization of cash compensation, health insurance compensation, employee retirement plan contributions, and state/local taxes.

    • Is the EIDL Advance amount only the $10,000 advance payment or the total EIDL loan amount?

      The EIDL Advance amount is the amount that was forgiven. A maximum of $10,000.

  • Repayment
    • How did the Paycheck Protection Program Flexibility Act of 2020 ("PPPFA") change the provisions of the Paycheck Protection Program loans originated by Pacific Mercantile Bank?

      If your loan was approved prior to the enactment of the PPPFA on June 5, 2020, the provisions of PPPFA required changes to some of the terms of your Note. Please see the Notice showing the original provisions and the new provisions as changed by the PPPFA. You should have received a request to sign an acknowledgement of these changes. If you have not received this notice, please contact your Relationship Manager to have a copy resent to you for signature.

    • What is the initial deferment period?

      No payments are due on this loan until 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 twenty-four week loan forgiveness covered period. Interest will continue to accrue during the deferment period. Lender will notify Borrower of the date of SBA’s remittance of the loan forgiveness amount to Lender, the amount, if any, which is not forgiven by SBA, and the due date and amount of the monthly payment.

    • What are the repayment terms?

      No principal or interest payments shall be due until expiration of the Initial Deferment Period. Commencing on the first (1st) monthly anniversary of the Note Date after expiration of the Initial Deferment Period (“Payment Start Date”) and continuing on the same day of each month thereafter, Borrower shall make a monthly principal payment on the outstanding principal balance (after application of any loan forgiveness) in an amount that shall fully amortize the outstanding principal balance of the Loan by the Maturity Date. Accrued interest shall be due and payable with each monthly principal payment. Lender will apply each installment payment first to pay interest accrued to the day Lender received the payment, then to bring principal current, and apply any remaining balance to reduce principal. The Note is payable in full on the Maturity Date without further demand or action of the Lender.