STAR Paycheck Protection Program Loan Information
Our community, like so many others across the globe is in need, and the need isn’t going to go away tomorrow, or next month or even next year. It’s our mission as a community bank to build, encourage and support both our local small businesses and our neighbors, whom we know by name.
Update on PPP Applications as of 5/4/21:
The funds for the PPP program have been exhausted and STAR is no longer accepting applications.
STAR Paycheck Protection Program Loan Forgiveness
Our forgiveness process is fully underway and we encourage you to apply as soon as you have used all of the funds for which you are requesting forgiveness.
All applications need to be submitted electronically. STAR will generate a lender equivalent of the SBA forms. The SBA version will not be accepted for our process.
There are 2 options to file – if you are unsure of which form to use, start with the form selection tool. If you already have the information prepared, you can go straight to the STAR Forgiveness Application Form below. A list of required documentation for each form type is included in the folder with the Loan Forgiveness Calculator Tool. These lists are also posted on our web page: STAR - PPP Support Page.
If your loan is under $150,000 and it is a second draw loan, STAR is using the SBA’s COVID Revenue Reduction Score, which means you do not need to submit any documentation with your initial application unless we reach out to you and request it.
Option 1: I need help determining which form to use
- Once you answer the questions from the selection tool form, you will be directed to the appropriate Loan Forgiveness Calculator tool – THIS TOOL IS COMPLETELY OPTIONAL – YOU DO NOT NEED TO USE IT IF YOU HAVE A SUMMARY OF INFO PREPARED – YOU CAN GO STRAIGHT TO THE FORGIVENESS APPLICATION FORM LINK.
- Once there, download the calculator tool (you will need to right click and select download to access the workbook in a format that allows editing) - If you are using less than 24 weeks, you can stop populating the workbook when you have entered the number of weeks in your chosen covered period. You only need to include expenses for which you are requesting forgiveness.
- Save your workbook when you have filled in all information and click the link on the “Forgiveness Calc” tab – this will take you to the form that you need to complete and will allow you to include attachments. Make sure that you upload the Loan Forgiveness Calculator tool along with your other supporting documents as that will be used in preparing the application you will sign for us to submit to the SBA.
Option 2: I have all of my information prepared and wish to go straight to the application
Choose the third, fourth or fifth option.
Forgiveness Document Checklist:
If you have questions, please email PPPLoanForgiveness@starfinancial.com.
Not receiving our e-mails about forgiveness? Fill out the form below to update your contact information for future e-mails:
Paycheck Protection Program Flexibility Act
For a message from our Chairman & CEO, please visit our PPP Flexibility Act webpage.
Note as of June 8, 2020:
The passage of the Paycheck Protection Flexibility Act of 2020 changed the existing program. The modifications implemented the following changes:
- Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
- Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID-19.
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
- Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
- Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
Your SBA Loan Number and Lender Loan Number are the same and can be found at the top left hand corner on page 2 of your Promissory Note.
The date your loan funds were deposited to your account.
How much of my loan could be forgiven?
Forgiveness is based on your use of the loan proceeds over the eight-week to twenty-four week Covered Period following your loan disbursement. A minimum of 60% of your loan needs to be for payroll costs, the remaining 40% should be used for other forgivable purposes such as rent, utilities and mortgage interest.
What is the deadline to apply for loan forgiveness?
You may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if you have used all of the loan proceeds for which you are requesting forgiveness.
When will I know how much of my loan is forgiven?
You should receive a response from us within 60 days after a complete application for loan forgiveness and the supporting documentation is received. The SBA has an additional 90 days to review our request.
Where do I submit my request for loan forgiveness?
If you received your PPP loan through STAR, the Forgiveness Application and supporting documents need to be submitted through us. Please use the links at the top of the page.
Is loan forgiveness automatic?
No. You must submit the application for Loan Forgiveness along with all supporting documentation.
What if only part of my loan is forgiven?
You will need to pay the remaining principal and interest over the remainder of the 24 or 60 month term of your loan, depending on your loan date. Principal and interest payments will start 10 months after the end of your loan forgiveness covered period. We will notify you of the exact date.
Does interest accrue during the forgiveness application period?
Yes, interest is accruing at 1% from the date of disbursement.
What if I don’t qualify for loan forgiveness?
You will need to repay the full principal and interest balance over the remainder of the 24 or 60 month term of your loan.
May I include lease payments I make on business personal property such as business vehicles or equipment?
Yes, the current version of the Loan Forgiveness Application states that these can be included if the agreement was in force before February 15, 2020.
May I include the payment I make on a loan for my business personal property or mortgage?
No, you can only include the interest payments made during the covered period for obligations incurred before February 15, 2020 (but not any prepayment or payment of principal).
What are considered utilities?
Business utility payments for electricity, gas, water, transportation, telephone or internet access for which service began prior to February 15, 2020.
May I use loan proceeds only for payroll costs paid during the covered period or may I also use them for payroll costs incurred?
Generally, payroll costs paid or incurred during the covered period are eligible for forgiveness. Payroll costs are considered paid on the day the checks are distributed or you originate the ACH credit transaction. Payroll costs incurred during your last pay period of the covered period are eligible for forgiveness if paid on or before the next regular payroll date, otherwise they must be paid during the covered period to be eligible for forgiveness.
When is payroll considered incurred?
On the day the employee’s pay is earned (i.e., on the day the employee worked). For employees that are not performing work but are on the borrower’s payroll, payroll costs are incurred based on the schedule established (typically the date the employee would have performed work).
Update on PPP Applications as of 3/5/21:
The SBA has instituted a rule change that allows borrowers that file on Schedule C to use their gross income in calculating their loan amount if they choose. The full interim final rule and applications are below and our system is ready to accept these applications.
Update on PPP Application Acceptance as of 1/27/21:
STAR Bank is participating in the new round for both First and Second Draw loans. As of January 26, 2021, our application criteria has been expanded to include customers that had an active deposit account as of December 31, 2020 for the entity that will obtain the PPP loan, or for First Draw Applicants that are willing to move their primary banking relationship to STAR. Please contact us for more details on these qualifications.
STAR Financial Bank will be participating in the new round for both First and Second Draw loans. We are only accepting applications from current customers that had an active deposit account as of December 31, 2020 for the entity that will obtain the PPP loan.
All applications will be processed in the order they are received and funding under this program remains subject to SBA approval and funds availability. Links are below for the Applications for both First and Second Draw Loans and a link to the Treasury’s website where there are many other resources. Also, below are links to STAR’s loan document request checklists – please make sure to reference to make sure you submit a complete application.
Loan Request Document Checklist: