SBA Relief Program Information
SBA Relief Program Information
At this time we are no longer able to accept applications for the SBA Paycheck Protection Program (PPP). Please click here to read more from the SBA’s website. We will continue posting updates to our website and social media as we are provided more information.
Legends Bank is staying on top of the latest information related to the Small Business Administration and US Treasury’s relief programs to provide you with access to the resources you need to make the best decision for your business.
NOTE REGARDING RELEASED PPP LOAN INFORMATION:
The Small Business Administration and Treasury Department publicly released information about Paycheck Protection Program loans. Please click here for details.
PPP Loan Forgiveness Information (latest information)
Banks are still waiting for the final procedural guidance from the Small Business Administration (SBA) and US Department of Treasury.* The information below is based on the most current guidance we have been provided and could be subject to change. We will provide updates as new information is released by the SBA and US Department of Treasury.
We thank you for choosing Legends Bank as your Paycheck Protection Program loan provider! It has been a honor and privilege to assist our small business community during such a challenging time.
The funds from the PPP loan can be used for the following business purposes:
- Payroll costs – salary, wages, vacation, parental, family, medical or sick leave, health care benefits
- Mortgage Interest – as long as the mortgage was signed before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business mortgage payments)
- Rent – as long as the lease agreement was in effect before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business rent payments),
- Utilities – as long as service began before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business utility payments)
All expenses that fall under those categories are eligible for forgiveness. Please keep in mind that the following conditions will also apply:
- Weeks of Coverage – Eligible expenses are those that are paid or incurred over the “covered period.” Loans have a 24-week covered period. Please note: loans approved by the SBA before June 5, 2020, have an option to continue with their original 8-week covered period or choose a 24-week covered period. An example of an 8-week covered period, if your PPP loan gets funded on April 16, you can only use the funds on expenses incurred during the eight weeks beginning April 16.
- The 60/40 Rule – At least 60% of your loan must be used for payroll costs. Payments to independent contractors cannot be included in the payroll costs
- Staffing Requirements – You must maintain or rehire employees and maintain salary levels.
After the Covered Period:
Applying for Loan Forgiveness
Applications for loan forgiveness will be processed by Legends Bank. We will provide you with the instructions when our online portal with the PPP Forgiveness Application becomes available and where to apply.
Record-keeping and Required Documents for Forgiveness
These are the required documents you will need to collect to provide with your PPP loan forgiveness application.
- Documents verifying the number of full-time equivalent employees on payroll and their pay rates, for the periods used to verify you met the staffing and pay requirements:
- Payroll reports from your payroll provider
- Payroll tax filings (Form 941)
- Income, payroll, and unemployment insurance filings from your state
- Documents verifying any retirement and health insurance contributions
- Documents verifying your eligible interest, rent, and utility payments (canceled checks, payment receipts, account statements)
Please note, these requirements may change as new guidance is released by the SBA and US Department of Treasury.
*Banks are still waiting on specific forms and procedural guidance from the SBA and US Department of Treasury. Requirements may change as banks receive additional guidance from the government. The SBA will continue to clarify and provide additional guidance regarding Paycheck Protection Program (PPP). Legends Bank will email and update our website as pertinent information is released.