COVID-19 Resources for Business Members
Suncoast understands that the coronavirus (COVID-19) has impacted many small businesses. Please know, we are here to help you through this.
This page will include the latest information for Suncoast business members, including government resources and loan options.
Questions about Suncoast Payment Relief
If you’re a Suncoast business member and need information about payment relief, please call us at 1-800-999-5887, ext. 89046. Leave a message with your question and contact information and a member of our business team will call back. Due to high call volume, we will contact you as soon as possible.
There are also a number of government resources available to help small businesses during this time:
Paycheck Protection Program Loan Forgiveness Update
At Suncoast Credit Union, our priority is to support our members during difficult times. We understand that achieving loan forgiveness is important to you and that you may have questions.
We are aware that the SBA started accepting PPP forgiveness applications as of 8/10/20.
Our goal is to minimize stress and frustration to members who are requesting forgiveness. We aim to make the process as easy as possible for our members.
Once our application portal is open, we will contact all members who we assisted with PPP loans with a link to the portal. Our portal is being updated to enable us to accept the new, simplified 3508 forms for loans that are less than $50,000. Please be assured there will be sufficient time for members to complete the application. Our team will provide due diligence throughout the process of PPP loan forgiveness through the SBA.
Please note that October 31, 2020 is NOT the deadline for borrowers to apply for forgiveness. Though some PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner, this was due to compliance reasons for the SBA.
Borrowers may submit a loan forgiveness application any time before the maturity date of the loan. However, borrowers must apply for forgiveness within 10 months after the last day of the loan forgiveness covered period. After that date passes, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.
We are closely following all regulatory requirements and continue to receive updates from the SBA as the process evolves.
Loan forgiveness is not automatic, you must request it once the process is available. Please keep in mind that this is an SBA program, so it is your responsibility as the borrower to understand and follow SBA guidelines. However, here is some information to help you prepare:
How do I request loan forgiveness through Suncoast?
If you have a PPP loan that Suncoast fulfilled, we will email you with instructions on how to apply for loan forgiveness.
Please make sure to submit all of the required documents to support your request. Additional information on the required documentation can be found here: home.treasury.gov/policy-issues/cares/assistance-for-small-businesses.
Who is eligible for loan forgiveness?
To be eligible to receive loan forgiveness, loan funds must be used for specified purposes, and at least 60% must be used for payroll costs, according to the SBA. Non-payroll costs may not exceed more than 40% of the loan amount.
During the eight to twenty-four week period after your loan is disbursed, you must generally maintain employee headcount and compensation levels, per the SBA guidelines.
The best resources to review and make recommendations based on your specific scenarios are accountants, CPAs and business attorneys.
How much of my loan can be forgiven?
Loan forgiveness could potentially be up to the full principal amount of the loan and any accrued interest.
For loans closed after 6/5/2020, loan maturity increased from two years to five years.
The amount of loan forgiveness you receive will depend on a number of factors. This includes the total costs for the following items during the eight to twenty-four week period following loan disbursement:
- Payroll costs
- Payments of interest on mortgage obligations incurred before February 15, 2020
- Rent payments on leases dated before February 15, 2020 and
- Utility payments under service agreements dated before February 15, 2020
What is the covered period?
The covered period represents the time during which the PPP funds (received and used) are eligible for forgiveness.
- Members that received a PPP loan that was funded prior to June 5th may choose either an 8 or 24 week covered period
- Loans that were funded June 5th or later have an automatic 24 week covered period
To avoid confusion, your loan payment due date currently reflects November 1, 2021. This allows ample time for you to make the best decisions for your business.
You can choose if you want to take advantage of the maximum covered period, as well as the grace period that follows.
What happens after I apply for loan forgiveness?
Once you apply for PPP forgiveness and submit all of the necessary documentation to support your request, Suncoast will begin processing your application.
- As the originating lender, we have 60 days to process your forgiveness request and submit it to the SBA
- The loan is sent to the SBA, and they have 90 days to process the submission and make the final decision
- We will let you know the SBA’s decision
What happens if my loan is not completely forgiven?
If your SBA loan is not completely forgiven, you will be provided options to remit payment for the residual balance. Payments on the residual balance will begin within 30 days of the SBA’s final decision.
How can I check the status of my PPP loan forgiveness application?
Once you have applied for loan forgiveness, you can log back into the portal with the credentials that you used to apply. This includes your SBA number or loan number, your email address, and password.
How can I get my documents ready for the loan forgiveness process?
Document your expenses for the eight to twenty-four weeks following loan disbursement, including payroll costs and other expenses. We will need documentation for any costs you plan to request forgiveness for.
Keep in mind that while loan payments will be deferred for ten months, interest will continue to accrue – even if the loan is not forgiven, partially or in full. The borrower will be responsible for any amounts not forgiven.
Visit the SBA and Treasury for the latest information on loan forgiveness. In addition, the National Law Review has provided updated guidance for the Paycheck Protection Flexibility Act that was signed by President Trump on June 5, 2020.
Other eligibility requirements may apply.
Be Aware of Phishing Emails Claiming to be About SBA Applications
As you apply for SBA loans and forgiveness, be extra vigilant when you open any emails claiming to be from the SBA or related sources. Scammers are pretending to be from trusted institutions and sending out malicious emails.
The Cybersecurity and Infrastructure Security Agency (CISA) issued a warning about phishing emails that include malicious links to a fake SBA COVID-19 loan relief webpage that steals your credentials.
Go to the CISA website to learn more about these phishing emails and see examples of what the spoofed website looks like.
SBA Economic Injury Disaster Relief Loan
The Small Business Administration is also offering assistance to members who have been affected by COVID-19. Learn more about this program and apply for these loans directly on the site.
For questions regarding the SBA Economic Disaster Relief Loan, email email@example.com or call (800) 659-2955 and (800) 877-8339 for hearing impaired.