Paycheck Protection Program
Information and Updates
Last updated: 1/20/2021
We are now accepting applications for the next round of Paycheck Protection Program loans. To be prepared to complete the application, please see “How can I be application ready?” in our Frequently Asked Questions below. You should consult with your financial/legal advisors for a comprehensive review of PPP rules and guidance. For the best experience, please use a browser other than Internet Explorer.
Prospective borrowers will need to have an active Huntington business checking account and current credentials for online banking to submit an application for first-time Paycheck Protection Program (PPP) or Second Draw Paycheck Protection Program (PPP2) loans. If you do not have online banking for your Huntington business checking account, please visit your local branch or call 800-480-2001 (M-F 8am-7pm; Sat. 8am-2pm) to establish online credentials. It may take a few days before your access is complete.
Note to Agents:
Huntington is not working with third-party agents on Paycheck Protection Program (PPP) loans, either at origination or in connection with forgiveness applications. We will work directly with the borrower including when they apply for forgiveness of any PPP or PPP2 loan extended to them.Paycheck Protection Program (PPP)
- Purpose: Emergency working capital to keep your business in operation during COVID-19
- Use of Funds: Payroll costs, benefits, rent, interest payments, utility payments, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations
- Amount: Lesser of 2.5x monthly average payroll or $10MM
- Rate: 1.00%
- Term: 5 years
- Features: No collateral or guarantors; eligible for forgiveness up to 100%
- How to Apply: You should login to your online banking here or here (if you use a token for online banking).
Paycheck Protection Program 2nd Draw (PPP2)
- Purpose: Emergency working capital to keep your business in operation due to loss in revenue from COVID-19
- Use of Funds: Payroll costs, benefits, rent, interest payments, utility payments, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations
- Amount: Lesser of 2.5x (3.5x for hospitality and food service industries) monthly average payroll or $2MM
- Additional Eligibility Conditions: Must have taken out and used a PPP loan previously; Must demonstrate a 25% gross receipts reduction
- Rate: 1.00%
- Term: 5 years
- Features: No collateral or guarantors; eligible for forgiveness up to 100%
- How to Apply: You should login to your online banking here or here (if you use a token for online banking).
Paycheck Protection Program Loan Forgiveness
Reminder: We began accepting forgiveness applications for Paycheck Protection Program (PPP) loans on September 21, 2020 for loans in excess of $150,000.
We recommend you review the forgiveness application forms on the Treasury website to ensure you have the documents and information you need to complete the application in our online forgiveness portal. We also recommend you review the SBA and Treasury PPP Loan Forgiveness FAQs. In addition, look at our forgiveness FAQs found on the login page to our online forgiveness portal.
You are encouraged to consult with your professional advisors for a comprehensive review of the PPP rules and guidance.
As we had hoped, the PPP forgiveness application process for customers who borrowed $150,000 or less will be streamlined as a result of the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act signed into law on December 27, 2020. We are still waiting for the updated forgiveness application for those borrowers from the SBA. Once we have received and incorporated the new form into our online forgiveness portal, we will begin inviting those borrowers to apply.
Be Wary of Fraudulent Emails:
The SBA has issued a notice that some borrowers have been receiving emails purporting to be from the SBA and threatening collection action against borrowers who the email says failed to repay PPP loans by May 7 (the original “safe harbor” date established for borrowers discussed in SBA FAQs 31 and 37). There have also been instances of borrowers receiving emails asking for information under the pretext of a “file review” by the SBA. If any such email is received by you and it does not come from an sba.gov email address, it is fraudulent. Emails from the SBA will always come from an sba.gov email address. File reviews for PPP borrowers will be facilitated through the PPP lenders.
Small Business Loan Relief Payments
Many (but not all) business loans that are SBA guaranteed and are in good standing are eligible to receive payment relief under the Economic Aid to Hard Hit Small Businesses, Nonprofits, and Venues Act signed into law on December 27, 2020. The SBA will be sending eligible borrowers a notice giving an overview of the payment assistance and other details before the end of January.
SBA Traditional 7(a) Loans
- Purpose: New money for recovery, purposes unrelated to COVID-19
- Use of Funds: Refinance of current debts, purchase and refinance of real estate, new money for purchases of equipment or software, working capital, business acquisitions, business improvements, support for startups that don’t qualify for disaster assistance
- Amount: Up to $5MM
- Rate: SBA market rates
- Structure: Up to 25 years
- Forgiveness: None
- Features: Guarantor support and any available collateral required
- How to Apply: If you typically use our branches, please visit our branch locator to find a branch near you. Or if you have a Relationship Manager, they are available to serve your financial needs by phone or appointment. Please contact your Relationship Manager directly.
Huntington's Lift Local Business Program
At Huntington, our tagline is, “Welcome.” Which means we welcome all challenges, all situations, and all people. Huntington now offers a program designed to create more opportunities for woman-, veteran-, and racially and ethnically diverse- owned businesses in the hopes that more opportunity generates more possibilities throughout the community.
PPP Frequently Asked Questions
1. Ensure you have an active Huntington business checking account and online banking credentials. If you do not have online banking for your Huntington business checking account, please visit your local branch or call 800-480-2001 (M-F 8am-7pm; Sat. 8am-2pm) to establish online credentials. It may take a few days before your access is complete.
2. Gather the following information and documents:
- Determine the amount of your monthly average payroll costs. You may choose to use information from either calendar year 2019 or 2020, but must be consistent. For seasonal employers, you should consult with your financial/legal advisors about the appropriate measuring period for your calculation of payroll costs.
Payroll costs generally include: salary, wages, commissions, or similar compensation; tips; vacation; parental, family, medical, or sick leave; group life, health, dental, vision benefits, retirement benefits; and state and local taxes on employee compensation. Payroll costs do not include: the compensation of an employee in excess of $100,000 on an annualized basis (as prorated for the period during which the payments are made or the obligation to make the payments is incurred) and any compensation of an employee whose principal place of residence is outside of the U.S.
You should consult with your financial/legal advisors in determining what your average monthly payrolls costs are, including what can be included and what must be excluded. - The documentation you need to submit in support of your calculation of your monthly average payroll amount as set forth in the Interim Final Rule on Paycheck Protection Program as Amended by Economic Aid Act and the Interim Final Rule on Second Draw Loans published by SBA and the U.S. Treasury Department on January 6, 2021, as well as the How to Calculate Maximum Loan Amounts for First Draw PPP Loans document published on January 17, 2021 and the How to Calculate Revenue Reduction and Maximum Loan Amounts document published on January 19, 2021. This documentation varies slightly based on entity type. Your loan will be easier to process and submit to the SBA if you provide all of the required documentation at the time you submit your application. If we have to follow up with you to obtain what is needed, it will necessarily delay processing of your application.
- You should consult with your financial/legal advisors in determining what documentation you need to submit.
- Independent Contractor/Self-Employed Individual, Sole Proprietor (without employees) Payroll Documentation
1. IRS Form 1040 Schedule C or 1040 Schedules 1 and F for farmers and ranchers
2. IRS Form 1099-MISC detailing nonemployee compensation, IRS Form 1099-K, or invoice or bank statement demonstrating you are self-employed
3. An invoice or bank statement that demonstrates you were in business on February 15, 2020 - Sole Proprietor With Employees Payroll Documentation
1. IRS Form 1040 Schedule C or 1040 Schedules 1 and F for farmers and ranchers
2. IRS Form 941 and State quarterly wage unemployment insurance tax reporting forms for all four quarters (or equivalent payroll processor records or Tax and Wage Statements). Businesses that file annual IRS Forms 943 or 944 may use those instead of quarterly 941s
3. Evidence of retirement and health, dental, vision, life insurance contributions, if any
4. A payroll statement or similar documentation from the pay period that covered February 15, 2020 to establish you were in operation at that time - Partnership Payroll Documentation
1. IRS Form 1065 including K-1s
2. If you had employees, you must also submit:- IRS Form 941 and State quarterly wage unemployment insurance tax reporting forms for all four quarters (or equivalent payroll processor records or Tax and Wage Statements). Businesses that file annual IRS Forms 943 or 944 may use those instead of quarterly 941s
- Evidence of retirement and health, dental, vision, life insurance contributions, if any
- Corporation or Association Payroll Documentation
1. IRS Form 941 and State quarterly wage unemployment insurance tax reporting forms for all four quarters (or equivalent payroll processor records or Tax and Wage Statements). Businesses that file annual IRS Forms 943 or 944 may use those instead of quarterly 941s
2. IRS Form 1120, 1120-S, 990, 990-EZ, as applicable, or other evidence of retirement and health, dental, vision, life insurance contributions, if any
3. A payroll statement or similar documentation from the pay period that covered February 15, 2020 to establish you were in operation at that time - LLC Payroll Documentation based on its tax filing status as set forth above (Sole Proprietor, Partnership, Corporation)
As we process your application, we may ask for additional payroll documentation.
- Independent Contractor/Self-Employed Individual, Sole Proprietor (without employees) Payroll Documentation
- The information and details needed to complete either the Form 2483 (for PPP) or the Form 2483SD (for PPP2)
- For PPP2, documentation showing that your business (together with its affiliates) had a 25% or more decrease in gross receipts during a quarter in 2020 compared to a reference quarter. You should consult with your financial/legal advisors on the appropriate way to calculate this requirement.
In addition, for PPP there is a limit on the total amount of loans that a single corporate group can obtain of $20,000,000. For PPP2 that limit is $4,000,000.
- Must have been in operation on 2/15/2020 and, unless a sole proprietor or independent contractor, had employees for whom salaries and payroll taxes were paid.
- Must currently be in operation.
- Must be a for-profit business concern, 501(c)(3) nonprofit, 501(c)(6) tax exempt organization, 501(c)(19) veterans organization, housing cooperative, a Tribal business concern, independent contractor, sole proprietor, other self-employed individual, or other business specified by the SBA.
- For PPP, must have 500 (300 for housing cooperatives and 501(c)(6) organizations) or fewer employees with certain exceptions; for PPP2, all entities must have 300 or fewer employees. Certain borrowers with multiple locations may have up to 500 (or 300 as applicable) per location. You should discuss with your financial/legal advisors to see whether and which exceptions apply to your business.
- Must not have stock which is listed on a recognized exchange.
- Must otherwise be a business eligible for an SBA guaranteed loan.
- For PPP2, have received a PPP loan and used proceeds for authorized purposes; provided that if a borrower was found to be ineligible after having received a PPP loan, the borrower is not eligible for a PPP2 loan.
- For PPP2, demonstrate a 25% or more reduction in gross receipts during a quarter in 2020 compared to a reference quarter. You should discuss with your financial/legal advisors the appropriate manner to calculate this reduction.
You should consult with your financial/legal advisors in determining what can be included and what must be excluded.
In addition, for PPP there is a limit on the total amount of loans that a single corporate group can obtain of $20,000,000. For PPP2 that limit is $4,000,000.
***However, if the proceeds are used for unauthorized purposes, the U.S. government can pursue the owners.***