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Helpful Links for PPP Borrowers

PPP Loan Portal for Second Round Loans and Forgiveness Applications
PPP Second Draw Borrower Application Form 2483-D
PPP Loan Forgiveness Application Demo Videos: Authenticating and Applying, Document Uploads and eSigning
PPP Loan Forgiveness Form and Instructions
PPP Loan Forgiveness Form 3508EZ and Instructions
PPP Loan Forgiveness Form 3508S and Instructions

PPP  Loans – Forgiveness Applications Update

February 22, 2021 – Beginning March 5, 2021 Lake City Bank will be able to submit the updated forgiveness application forms to the SBA through our digital platform. As a reminder, all Form 3508 alternatives (Standard, EZ and S) were modified and impacted by this timing. The new applications include new questions which you will need to answer. You may also be eligible for a different form of application (some borrowers will now be eligible to use the 3508S for loans between $50,000-$150,000 instead of the 3508EZ or 3508 Standard).

If you have not started the forgiveness application process, please continue to be patient. You will be able to start your application on the new forms through our PPP Loan portal on Friday, March 5.

Please note, Friday, February 26, is the last day that we can submit your forgiveness application on the old forms to the SBA through our digital platform. If you have already started your forgiveness application, we have good news. All the information and documentation you have submitted will be saved for transitioning to the updated forms. Over the February 27-28 weekend, all forgiveness applications in process will be automatically rolled back to a saved application state with no data loss. Beginning Monday, March 1, you can log in to the PPP Loan portal, continue completing the updates on the new applicable forgiveness form and submit for lender review.

If your application must be submitted to the SBA by February 26, please contact your banker immediately. We will do our best to process all completed applications with uploaded information before the February 26 deadline.

As always, we encourage you to reach out to your legal and tax counsel for appropriate guidance and the SBA website for real-time updates.

PPP Second Round Loans – Revenue Documents Update

January 20, 2021 – The Small Business Administration (SBA) released information on Tuesday morning about documentation required for the second round of Paycheck Protection Program (PPP) loans. Please read the requirements carefully to determine the appropriate next steps for your business. As always, we continue to encourage you to monitor the SBA’s Frequently Asked Questions (FAQ) and general PPP information.

The SBA provided additional guidance about documents you need to provide to prove that your business sustained at least a 25 percent reduction in gross receipts. You need to submit one of the three forms of documentation described below.

  • Quarterly financial statements – If your financial statements are not audited, you must sign and date the first page of the financial statement and initial all other pages to attest to their accuracy. If your financial statements do not specifically identify the line item(s) that constitute gross receipts, you must note which line item(s) constitute gross receipts.
  • Quarterly or monthly bank statements for the business showing deposits from the relevant quarters – You must note, if it is not clear, which deposits listed on the bank statement constitute gross receipts (like payments for purchase of goods and services) and which do not (like capital infusions).
  • Annual IRS income tax filings of the business (required if using an annual reference period) – If you have not yet filed a tax return for 2020, you must fill out the return forms, compute the relevant gross receipts value and sign and date the return, attesting that the values for the gross receipts computation are the same values that will be filed on your business tax return.

If your second draw PPP loan is greater than $150,000, you will need to upload the documents above (signed/initialed/dated as described). If you have submitted your application as well as supporting documents and we’re reviewing them, you won’t be able to make edits to your application or documentation. However, you will receive an email from us prompting you to upload documents prepared with signature/initials/date as described in the instructions above, and then resubmit. If you have not submitted an application yet and/or it’s not being reviewed, upload your application and documents with the signature/initials/date so we can process your application.

If your second draw PPP loan is less than $150,000, you are not required to provide revenue information until you apply for forgiveness. You may submit your documentation at application if you wish, but please note it must be prepared and signed/initialed/dated as described above. If you have already submitted your second draw PPP loan to us for review, please contact your banker to request that we either 1) return the application to you so you can upload the signed/initialed/dated revenue forms, or 2) remove the revenue information that is not needed at this time and process the loan request.

Finally, when submitting your application, please remember to enter your Lake City Bank checking or savings account number in the “Business Checking Account” field so we can deposit loan funds into your account.

Please continue to consult your legal and tax counsel for appropriate guidance, as well as the SBA website for all real-time updates on the PPP loan program. And as always, reach out to your banking representative if you have questions.

Update on PPP Loan Forgiveness and Second Round Loans

January 15, 2021 – Final details still remain fluid, but we learned Wednesday evening that the SBA plans to open the process of second round Paycheck Protection Program (PPP) loans to Lake City Bank on Tuesday, January 19. The SBA said it believes that adequate funding for this second round of loans is available.

We will use the automated solution that we introduced for the forgiveness process to apply for second draw loans. If you have a PPP loan with us from the first round of SBA funding, we anticipate that about 75% of your current borrower information will be pre-populated in the new solution. Click here to download a short guide to step you through the online application process.

Lake City Bank can submit second draw applications to the SBA starting January 19, but you may start your second draw PPP loan application now. Remember, you must provide the borrower Tax ID number, contact’s email address and contact’s Social Security Number to log in. If you’re unable to access the system, please reach out to your banking representative to make sure we have this information to upload into the system.

Please keep in mind the process and requirements for second draw PPP loans are different than the first draw program.

  • If you had a first draw loan, you may apply for a second draw loan when you’ve used the funds from your first draw loan, even if that loan has yet to be forgiven.
  • Second draw loan applications require good faith certifications including documentation of a 25% or greater decline in gross receipts and that the new loan request is necessary to support the ongoing operation of your business. Please review the application and related SBA information to see if you are eligible to apply and consult your legal or tax counsel for guidance.

First Draw Loan Modifications Update
Lake City Bank can begin processing first draw loan modifications on January 25.  You cannot request an increase if you have already received a forgiveness payment.  We encourage you to review the SBA’s procedural notice for further details. If you are eligible for a first draw loan modification, please submit your application and supporting documents directly to your banking representative.

Forgiveness Applications Update
The SBA will provide details of the simplified process for current PPP borrowers with loans less than $150,000 by January 20, 2021. If you borrowed less than $150,000 and have not started or completed the forgiveness process, you may want to wait for this simplified process.

We’ve also received reports about SBA approval on forgiveness applications taking more than 90 days, both from customers and from other banks. Lake City Bank has taken care to submit applications to the SBA within the required time frame. We continue to monitor the situation closely and will let you know when we receive an update.

Please contact your advisors and your banking representative if you have questions.

Update on PPP Loan Forgiveness and Second Round Loans

January 11, 2021 – The Small Business Administration (SBA) announced a second round of Paycheck Protection Program (PPP) loans last week. While details remain fluid, we are ready to take applications when the SBA opens the process to Lake City Bank. For second draw loans, we will use our automated solution that we introduced for the forgiveness process, which will be populated with information from your first draw loan. Please review the following status updates, including new updates to the authentication process.

Updated Authentication
Effective January 11, 2021, you must provide revised information when you log in to our automated solution. We made this revision because PPP loan numbers and amounts (part of our previous login requirement) have been published by the SBA. To maintain a secure process when logging in the system requires borrower Tax ID number, contact’s email address and contact’s Social Security Number. If you’re unable to access the system, please reach out to your banking representative to make sure we have this information to upload into the system.

Second Draw PPP loans
As you may know, the process and requirements for Second Draw PPP loans are revised from the First Draw program. For Second Draw PPP loans, we will accept applications through our automated solution. A few details:

  • Please do not apply for a second draw PPP loan until we notify you that Lake City Bank has been authorized to accept applications and submit them to the SBA.
  • If you had a first draw loan, you may apply for a second draw loan when you’ve used the funds from your first draw loan, even if that loan has yet to be forgiven.
  • For second draw loans, you will need to complete a Second Draw application with good faith certifications including documentation of a 25% or greater decline in gross receipts and that the new loan request is necessary to support the ongoing operation of your business. Please review this application and related SBA guidance to see if you are eligible to apply and consult your legal or accounting professionals if needed.

Loan Forgiveness Process Continues
Loan Forgiveness for First Draw PPP loans continues through our automated solution, where you can start your forgiveness application or continue in the process. Don’t forget, requirements for authentication have changed—please see the revised authentication note above.

Repeal of EIDL Advance Deduction
Effective immediately, SBA will no longer deduct Economic Injury Disaster Loan (EIDL) advances from forgiveness payments that it remits to PPP lenders. If you had an EIDL advance withheld from your first draw PPP loan forgiveness amount, the SBA will return those funds to the bank. We will use those funds to pay off any PPP loan balance or refund them if the borrower has repaid their PPP loan. The SBA’s timeline for returning withheld EIDL funds hasn’t been established.

We will continue to update you on developments on Second Draw PPP loans, including when the SBA notifies the bank that we can accept applications. In the meantime, please contact your advisors and your banking representative if you have questions.

Forgiveness Process Continues for PPP Borrowers

Lake City Bank customers with Paycheck Protection Program (PPP) loans can now apply for loan forgiveness from the Small Business Administration (SBA) using our automated solution. Entering information into the solution and uploading supporting documents is simple. See Helpful Links for PPP Borrowers above to connect with our solution, view videos about entering your application and supporting documents, and access applications and instructions from the SBA. Please contact your banking representative with questions.

New Information about Payroll Protection Program loans from the SBA

We’ve learned the SBA has stopped accepting applications for Paycheck Protection Program (PPP) loans as the processed loan volume has reached the $349 billion level authorized by the CARES Act. We are proud that Lake City Bank has filed 100% of the applications for which we had received all required client information as of April 15, 2020. We are disappointed that the SBA system will not accept additional applications at this time. While the SBA will no longer accept applications from any lenders to make PPP loans, it has been widely reported that Congress is anticipated to authorize expanded PPP funding to continue to meet the payroll needs of small businesses struggling during the Coronavirus pandemic. Given the uncertainty around increased funding, and knowing demand remains for businesses to take care of their employees, Lake City Bank will continue to work with our clients to gather information necessary for an application should the SBA reopen the program with additional funding. Please continue to provide the required Borrower Application and supporting documentation to your Lake City Bank relationship manager. For current applicants unsure of the status of your application, please feel free to call your relationship manager for an update. For customers who were informed of your approval, we are working on processing your documents for signature and funding within 10 calendar days since the date of your approval.

Lake City Bank is proud of our ability to meet the needs of so many businesses as a Preferred Lender of the SBA. We appreciate your business and stand ready to assist with all of your banking needs – both now and into the future.

Sincerely,

Eric H Ottinger
Executive Vice President
Commercial Banking Manager

Update: Paycheck Protection Program Launches

The much-anticipated PPP Loans program has launched. The bank has already experienced high demand for the program, which will offer some relief to small businesses affected by the COVID-19 virus, and expects a record number of applications.

Lake City Bank is ready to help. Based on very high loan demand, our priority will be to process applications for existing business customers. If you have a business deposit and/or loan account at Lake City Bank as of March 15, 2020, we can take your application for this loan program now. If you would like to apply, you can find a PDF version of the Small Business Administration’s application here. If you would prefer a fillable PDF, find it here. To complete your application, we will need payroll details and other documentation. You’ll find a checklist of the required documentation here. We are continuing to learn more about the SBA approval system and may add or delete items from the Borrower Checklist as we continue to gather information and experience, so please refer to the latest version posted on our website before sending your application and documentation.

It’s important to recognize that the demand for these loans is very high and funds are limited. While we’re committed to moving your PPP application forward as quickly as possible, it’s clear that unprecedented volume, guidance and details that remain relatively fluid and limited access to the SBA’s application system will hamper the banks’ ability to move through the process efficiently. We anticipate that approvals and funding will reflect the high volume that the SBA will experience, so we counsel patience with the process.

We appreciate the opportunity to help you weather this difficult time. Please contact your banking officer with questions and to arrange submitting your application and documentation. We will post updates on our COVID-19 page and this page.

Support for Businesses During the COVID-19 Crisis

As an SBA lender, we’re excited to be able to help you take advantage of the Paycheck Protection Program launched by the Treasury Department and the Small Business Administration. Details and guidance on the program remain fluid. That said, many financial institutions and advisors have made promises and provided access to applications and other information that remain unconfirmed and far from finalized. While we are ready and willing to help you in this process if you decide to participate, we’re also committed to providing details and tools for applying when we are certain that we have the facts to move forward.

Based on what we know now and very high loan demand, our priority will be to process applications for existing business customers. If you have a business deposit and/or loan account at Lake City Bank as of March 15, 2020, we will take your application for this loan program as soon as the program parameters are finalized by the SBA. Limited exceptions may apply, so please contact your relationship manager to discuss your eligibility.

More information from the Treasury Department is available here. Please check our COVID-19 page for updates and more information. To determine if you would like to consider a PPP loan, we encourage you to review the guidance, further details and terms from the Small Business Administration.

We will confirm when we can submit applications to the SBA as soon as we have accurate details to properly book and process them. In addition to completing an application, you will also need to prepare the necessary payroll calculations along with any related financial documentation or verification required, and gather any other items that are required under the program so we can expedite your loan request.

We’re committed to moving your PPP application forward as quickly as possible. We appreciate the opportunity to help you weather this difficult time. Please contact your banking officer with questions.

SBA Loan Programs

The US Small Business Administration offers a variety of loan programs to assist small business owners. Lake City Bank is a certified SBA Express lender, and is an approved lender under the SBA Preferred Lender Program, both of which streamline the process for prospective borrowers. Our lenders understand available SBA loan options, and can help guide you through an SBA Loan application.

SBA PROGRAMS INCLUDE:
SBA 504 Loan
Designed to provide financing for the purchase of fixed assets, including real estate, buildings and machinery at competitive interest rates. As part of its mission to promote the development of businesses, the SBA offers a number of different loan programs tailored to specific capital needs of growing businesses.

SBA 7(a) Loan
This loan is the SBA’s primary program for helping eligible start-up and existing small businesses with financing for a variety of general business purposes. SBA does not make loans itself, but rather guarantees a portion of the loans made by Lake City Bank. SBA 7(a) loans have a maximum loan amount of $5 million.

SBA Express Loan
Lake City Bank is an approved Express Lender with the SBA, which permits us to complete the underwriting and documentation on our own while following the SBA’s standards for the 7(a) loan program. This provides faster turnaround time for our clients. Revolving lines of credit also may be approved under the Express Program.

READY TO GET STARTED?
Drop in one of our branch locations or call our One Call Center at (888) 522-2265.

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