SBA Paycheck Protection Program Update

First Citizens Bank is proud to have helped nearly 23,000 businesses across our footprint secure loans totaling $3.2 billion through the Small Business Administration's Paycheck Protection Program.

"Taking care of our customers is our promise—it's who we are, especially during times like these," said Chairman and CEO Frank Holding. "I'd like to thank our clients for their patience and trust in us as we've navigated this process and the unusual operating environment. I'd also like to thank our associates for diligently working day and night to help businesses access this PPP funding. It's been an incredible display of teamwork and dedication, and we're grateful for the opportunity to support small businesses and their vital role in the communities we serve."

PPP Loan Forgiveness

It's important to adhere closely to the SBA guidelines to have your loan forgiven. While we await further guidance from the SBA, we've outlined the current guidelines and required documentation so you can see how the process works. We'll continue to update this information and will communicate directly with our PPP borrowers as new information becomes available.

Loan Forgiveness

Both the principal and interest on a PPP loan have the potential to be forgiven in part or whole if you use it according to program guidelines. The current guidelines are as follows:

  • Loan proceeds may be forgiven – Funds spent on eligible payroll and other expenses during the 8 weeks following the date you received the loan proceeds may be forgiven. The actual amount will depend mainly on your total payroll costs and other expenses as outlined below.(Example: If you received funds on April 15, funds used for eligible payroll and other expenses until June 10 can be used to calculate the amount of your forgiveness request.)
  • At least 75% of proceeds must be applied to payroll costs.
  • Up to 25% of proceeds may be applied to other covered costs as follows. Note that mortgages, leases and utility service agreements must have been in place before Feb. 15, 2020.
    • Mortgage Interest
    • Rent
    • Utilities

Any use of funds for purposes in amounts other than those currently outlined by SBA guidance make part or all of your PPP loan ineligible for forgiveness.

Required Documentation

When you're ready to request forgiveness 8 weeks after receiving the loan proceeds, you will be required to submit a forgiveness application to First Citizens. The SBA has not yet provided full guidance about all of the documentation required, but you'll need to carefully account for, document and attest to the requested forgiveness amount. The types of documentation you will provide will be similar to the documents you submitted with your PPP Loan Application.

Here are some types of documentation you should expect to provide while we await further guidance about how and when you will need to provide your documentation.

  • Number of employees and their pay rates
  • Documentation of payroll expenses covering the 8-week period after receiving funds
  • Payment documentation on eligible mortgage, rent and utilities
  • Attestation that all documents are true and the requested forgiveness amount was used for eligible forgiveness purposes

We recommend you work with your accountant, office manager or attorney to ensure you have this documentation. It's important to understand that it is ultimately your responsibility to provide and attest to the documentation supporting your request for loan forgiveness.

Additional Information and Resources

We're here to help you and your business thrive and will communicate again as soon as we have additional details to share. In the meantime, you may find these links helpful:

Feel free to contact your First Citizens banker with any questions.