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Thank you for trusting us to be your financial institution in good times and in challenging times like these. We're working diligently to help you navigate through economic uncertainty.  Whether diving into the latest research, analyzing fast-moving market trends, or delivering expert-driven thought leadership, you can continue to look to us for support.

We’ll be refreshing this page regularly with updates on our response to COVID-19.  We hope you’ll explore our resources, read the insights, talk to your banker, and remember: we’re here to help.

Important Updates

May 28, 2020: Last night (5/27/20), the Federal Reserve released legal documentation and revised FAQs for the Main Street Lending Program (MSLP). A launch date for the MSLP lending facilities has not yet been specified. Real time updates on the latest MSLP information can be found on the external Federal Reserve MSLP homepage and Federal Reserve Bank of Boston MSLP homepage.

 

Small Business Administration (SBA)
Paycheck Protection Program Update on Loan Forgiveness

 

The Small Business Administration (SBA) has updated its guidance on Loan Forgiveness. Please check back on this page for updates.

If you’ve received funding through the SBA’s Paycheck Protection Program (PPP), you may be eligible to request Forgiveness. We know that Forgiveness is important to you and your business and that you have questions.

Updated information from the SBA on how to prepare for Forgiveness:

  • The SBA provided the Paycheck Protection Program Loan Forgiveness Application
  • We recommend you familiarize yourself with this document because it will be used during the online Forgiveness request process. It includes: 
    • Giving businesses with bi-weekly or more frequent payroll schedules the option to use an “alternative payroll covered period” (page 1). 
    • Clarifying that eligible payroll costs are incurred when employees’ pay is earned (page 2). 
    • PPP Loan Forgiveness Calculation Form (page 3).
    • PPP Schedule A to calculate payroll costs (page 6).
    • Clarifying that a reduction in full-time equivalency (FTE) employees could affect your Forgiveness amount (pages 7-8).
  • For a  detailed list of documentation you’ll need to submit (page 10), click the plus sign below:




Requesting Loan Forgiveness through Chase

  • Forgiveness is not automatic, you must request it through JPMorgan Chase.
  • We'll provide you a timetable for Forgiveness requests as we get guidance from the SBA.
  • We’ll email you when you can request Forgiveness
  • PPP loan payments start seven months after the loan funds were deposited into your account, but interest will continue to accrue. The borrower will be responsible for all amounts not forgiven.
  • No more than 25% of the Forgiveness amount may be attributable to non-payroll costs.  
  • You will need to certify and document that you used the loan funds for SBA-eligible purposes
  • We’ll review your request and send it to the SBA for authorization.
  • Once the SBA makes a decision, we’ll email you.

It is your obligation, as the borrower, to understand and comply with the SBA's rules. Other eligibility requirements may apply. 

 


FAQs about Paycheck Protection Program Loan Forgiveness

Paycheck Protection Program 

The SBA Paycheck Protection Program (PPP) is an initiative offering primarily small businesses access to capital for payroll and other overhead costs. 

Update May 13, 2020:

The SBA issued a new FAQ 46 regarding economic necessity where they have established a safe harbor so that: “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” 

Please be sure to read FAQ #46 shown below in its entirety and, if necessary, consult with your counsel or advisor.

 

PPP FAQs

47. Question: An SBA interim final rule posted on May 8, 2020 provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith. Is it possible for a borrower to obtain an extension of the May 14, 2020 repayment date?

Answer: Yes, SBA is extending the repayment date for this safe harbor to May 18, 2020, to give borrowers an opportunity to review and consider FAQ #46. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor.

46. Question: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?

Answer: When submitting a PPP application, all borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA’s review of PPP loans with respect to this issue: Any borrower that, together with its affiliates20, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.

SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.

Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request. SBA’s determination concerning the certification regarding the necessity of the loan request will not affect SBA’s loan guarantee.

20 For purposes of this safe harbor, a borrower must include its affiliates to the extent required under the interim final rule on affiliates, 85 FR 20817 (April 15, 2020).

43. Question: FAQ #31 reminded borrowers to review carefully the required certification on the Borrower Application Form that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” SBA guidance and regulations provide that any borrower who applied for a PPP loan prior to April 24, 2020, and repays the loan in full by May 7, 2020, will be deemed by SBA to have made the required certification in good faith. Is it possible for a borrower to obtain an extension of the May 7, 2020 repayment date?

Answer: SBA is extending the repayment date for this safe harbor to May 14, 2020. Borrowers do not need to apply for this extension. This extension will be promptly implemented through a revision to the SBA’s interim final rule providing the safe harbor. SBA intends to provide additional guidance on how it will review the certification prior to May 14, 2020.

Please remember that you also certified you understood that knowingly making a false statement to obtain a guaranteed loan from SBA is punishable under the law, including under 18 USC 1001 and 3571 by imprisonment of not more than five years and/or a fine of up to $250,000; under 15 USC 645 by imprisonment of not more than two years and/or a fine of not more than $5,000; and, if submitted to a federally insured institution, under 18 USC 1014 by imprisonment of not more than thirty years and/or a fine of not more than $1,000,000.   

The Treasury, SBA and the media have been focused on PPP loans and issues around borrower eligibility. 

Throughout this process, we have relied on your certifications regarding eligibility. Federal agencies, legislators and media have been focused on PPP loans, including borrower eligibility.  If you do not currently believe that your business is eligible for PPP funding (even if you’ve previously certified as to eligibility on your PPP loan application), you should consider taking action now. Please note that we anticipate that when applying for PPP loan forgiveness, borrowers will be required to make the same or similar certifications as to eligibility as those made during the application process.

If you have received PPP funding and now feel you may not be eligible: The Treasury and SBA have indicated that your prior certification as to eligibility will be deemed to have been made in good faith if you repay your PPP loan in full by May 14, 2020. To arrange for repayment by the May 14th deadline, please contact your banker no later than May 11th.

31. Question: Do businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan?

Answer: 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 “current 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.

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Paycheck Protection Program - how JPMorgan Chase is helping small businesses. Updated May 29, 2020.


Coronavirus Aid, Relief and Economic Security Act

The CARES Act was signed into law on March 27, 2020 providing $2.2 trillion in emergency assistance for individuals and businesses affected by COVID-19. 

CARES Act COVID-19 Assistance for Business April 16, 2020
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Main Street Lending Program

Last night (5/27/20), the Federal Reserve released legal documentation and revised FAQs for the Main Street Lending Program (MSLP). A launch date for the MSLP lending facilities has not yet been specified. Real time updates on the latest MSLP information can be found on the external Federal Reserve MSLP homepage and Federal Reserve Bank of Boston MSLP homepage.

On Thursday, April 30, the Federal Reserve released revised guidance for the Main Street Lending Program. This guidance includes revised term sheets for three separate loan facilities and FAQs. A start date for the program will be announced soon.  Additional information regarding the Main Street Lending program will be posted on the Federal Reserve site as it becomes available.

On Thursday, April 9, the Federal Reserve released additional information regarding actions it’s taking to support the economy. This update includes details on the $600 bn Main Street Lending Program (MSLP), a CARES Act program that will provide funds to eligible businesses affected by COVID-19. See the announcement.

 

Business Updates

We’re here to help you keep your business on track. As you evaluate market and economic changes, we are ready to help you understand your options. 

 View business updates at the links below. 

 

Commitment to Communities 

We know that managing the global impact of COVID-19 is about more than helping you manage your balance sheet. We’re also doing our part to help communities recover in the face of uncertainty. That’s why JPMorgan Chase has committed $50 million to address immediate public health and long-term economic challenges from the COVID-19 global pandemic.

Our initial $15 million commitment includes:

  • $5 million to provide immediate healthcare, food and other humanitarian relief globally;
  • $2 million to existing nonprofit partners around the world that are responding to the COVID-19 crisis in their communities;
  • $8 million to assist small businesses vulnerable to significant economic hardships in the U.S., China and Europe

Read more here.



 

Business Resiliency and Fraud Protection

Keep your business running with tips and best practices.

 

 

Market and Economic Update

Stay up to date on our latest research and analysis.

Get in Touch and Stay Informed

If you are a Chase Business Banking client, visit chase.com/cares for more information.

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