Business Loans



Paycheck Protection Program for Small Businesses


UPDATE: JCB's PPP Loan Forgiveness page is now available.

UPDATE: The Small Business Administration (SBA) has announced that the Paycheck Protection Program (PPP) Forgiveness Platform will soon be open to accept Loan Forgiveness Applications. On Monday, August 10, subject to extension of any new legislative amendments to the forgiveness process necessitating changes to the system, JCB will begin accepting PPP Loan Forgiveness requests. All lenders must complete the review of the application and issue a decision to the SBA, along with the required documents, no later than 60 days after receipt of a complete application from the borrower. Please note that you do not have to apply for forgiveness immediately. You may opt for the 24-week covered period and apply after that period is up. JCB continues to monitor for any updates or changes to the SBA loan forgiveness guidance and will communicate any significant changes to the forgiveness process as such information is made available. If you would like to review the in-depth details in connection with the Paycheck Protection Program and the forgiveness process, we encourage you to visit the SBA Paycheck Protection Program webpage.

UPDATE: The SBA and Treasury Department have officially announced they will publicly release certain information about Paycheck Protection Program borrowers. The SBA said it will disclose business names, addresses, dollar ranges for loan amounts, and other information for PPP borrowers with loans of $150,000 and up, which account for nearly three-quarters of PPP borrowers. Dollar-amount disclosures will provide ranges from $150,000-$350,000 up to $5 million-$10 million. For the full press release, click here.

UPDATE: A Paycheck Protection Program reform law was signed by President Trump on Friday, June 5, which affects the original terms of the program. While further guidance and clarification from the SBA and Treasury Department is likely, for more information tap the "PPP Flexibility Act of 2020" bar below...

UPDATE: The SBA and Treasury Department have released the PPP Loan Forgiveness Application and instructions. For more information and to download the application and instructions, tap the "Loan Forgiveness" bar below...

UPDATE: The SBA will resume accepting Paycheck Protection Program loan applications at 10:30 a.m. on Monday, April 27. The SBA issued an interim final rule with additional guidance on the program authorizing $310 billion in additional PPP funds with at least $30 billion of funding dedicated for loans from institutions like JCB with under $10 billion in assets.

UPDATE: The Treasury and SBA have released a statement announcing that the $349 billion in PPP funds have been exhausted as of 10:45 a.m. on Thursday, April 16. The SBA will no longer be processing PPP applications. Customers who have received an SBA loan number will still have their PPP funds disbursed within 10 days of their approval. The SBA will not maintain a queue for PPP applications while waiting for additional funding; however, JCB will continue to accept inquiries and will contact those customers if additional funding for the program becomes available.

Congress passed “The Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), which included the “Paycheck Protection Program” (PPP) for small businesses. The PPP will provide short-term cash flow assistance to small businesses to help these businesses and their employees deal with the immediate economic impact of the COVID-19 pandemic.

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

The Small Business Administration (SBA) will forgive loans if all employees are kept on the payroll for eight (8) weeks and the money is used for payroll, rent, mortgage interest, or utilities.

The Paycheck Protection Program will be available through June 30, 2020, or until funds made available for this purpose are exhausted.

To begin the application process, please complete and submit the form below. After submission, you will receive a secure e-mail from JCB with the loan application, list of required documentation, and other information - including instructions on how to securely upload your completed application and necessary documents. To minimize delays, please check your Inbox (and Junk or SPAM folders) frequently and respond ONLY when the application has been FULLY completed and ALL required documentation can be included.

Please note that the information below is subject to change based on additional guidance from the SBA. We anticipate a large volume of inquiries about and applications for this program. To expedite the process, we may work with third party affiliates to assist in administering the program.


  • Extends from eight (8) to 24 weeks the amount of time borrowers have to spend PPP funds while remaining eligible for forgiveness.
  • Lowers the amount that must be spent on payroll costs from 75 percent to 60 percent.
  • Extends to December 31 the period in which employers may rehire or eliminate a reduction in employment, salary, or wages that would otherwise reduce the forgivable loan amount.
  • Replaces the six-month deferral of payments due under PPP loans with deferral until the date on which the amount of loan forgiveness is remitted to the lender.
  • Establishes a minimum maturity of five (5) years for new PPP loans as opposed to the current two-year maturity date.
  • Eliminates a provision that makes PPP loan recipients who have such indebtedness forgiven ineligible to defer payroll tax payments.


This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors, and self-employed persons), private non-profit organizations, or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

NOTE: The 500-employee threshold includes all employees—full-time, part-time, and any other status.


Loans can be up to 2.5 x average monthly payroll costs, not to exceed $10 million.

Non-seasonal Employers:

  • 2.5x the average total monthly payroll costs incurred during the year prior to the loan date
  • For business not operational in 2019 maximum loan amount is 2.5x the average total monthly payroll costs incurred for January and February 2020

Seasonal Employers:

  • 2.5x the average total monthly payroll costs incurred for the 12-week period beginning February 15, 2019 or March 1, 2019 (decided by the loan recipient) and ending June 30, 2019



  • Payroll costs (i.e., salaries, wages, vacation, parental, family, medical, or sick leave, severance, retirement benefits, and state or local taxes assessed on compensation)
  • Costs related to group health care benefits (i.e., insurance premiums)
  • Employee commissions and tips
  • Interest on mortgage obligations, rent, including rent under a lease, utilities or interest on other debt, incurred prior to obtaining the loan

If the applicant took out an emergency bridge note during the period beginning January 31, 2020, and ending on the date which the PPP loans are made available, these funds may be eligible for refinance under the covered loan.


The loan has a maturity of two (2) years and an interest rate of 1.00%.


JCB is now accepting PPP Loan Forgiveness applications.

The SBA and Treasury Department have released the PPP Loan Forgiveness Application with instructions. Consistent with the CARES Act, the form and instructions include:

  • Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after borrowers received their PPP loan.
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
  • Statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
  • A new exemption for borrowers whose good-faith, written offers to rehire workers were declined.

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. Due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time employment declines, or if salaries and wages decrease.

A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:

  • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
  • Interest on the mortgage obligation incurred in the ordinary course of business
  • Rent on a leasing agreement
  • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
  • For borrowers with tipped employees, additional wages paid to those employees

The loan forgiveness cannot exceed the principal.


Loan payments will be deferred for six (6) months.


Sum of Included Payroll Costs – Sum of Excluded Payroll Costs = Payroll Cost

Included Payroll Costs
For Employers: The sum of the payments of any compensation with respect to employees that is a:

  • Salary, wage, commission, or similar compensation
  • Payment of cash tip or equivalent
  • Payment for vacation, parental, family, medical or sick leave
  • Allowance for dismissal or separation
  • Payment required for the provisions of group health care benefits, including insurance premiums
  • Payment of any retirement benefit
  • Payment of state or local tax assessed on the compensation of the employee

For Sole Proprietors, Independent Contractors, and Self-Employed Individuals: The sum of payments of any compensations to or income of a sole proprietor or independent contractor is a wage, commission, income, net earnings from self-employment, or similar compensation and that is in the amount that is not more than $100,000 in one year, as pro-rated for the covered period.

Excluded Payroll Costs

  • Compensation of an individual employee in excess of an annual salary of $100,000
  • Payroll taxes, railroad retirement taxes, and income taxes
  • Any compensation of an employee whose principal place of residence is outside of the United States
  • Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act, or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act



No collateral or personal guarantees are required. No additional SBA or JCB fees.


While we do not have all the details yet around requirements, we do know the following questions will be asked:

  • Has the borrower been in operation before February 15, 2020 and had employees for whom they paid salaries and payroll taxes or paid independent contractors?
  • Can the borrower provide a good faith certification?
    • The uncertainty of current economic conditions makes the loan request necessary to support the ongoing operations of the business
    • The borrower will use the loan proceeds to retain workers and maintain payroll or make interest payments, leases, and utility payments
    • Borrower does not have an application pending for a loan duplicative of the purpose and amount applied for here
    • From February 15, 2020 to December 31, 2020 the borrower has not received a loan duplicative of the purpose and amounts applied for here (Note: There is an opportunity to fold in emergency loans made between January 31, 2020 and the date the PPP program becomes available into a new loan)

We also recommend applicants start to gather the following information in anticipation of the program going live:

  • 2019 tax returns or 2019 year-end balance sheet and profit loss statements
  • Last 4 quarters of payroll forms (941)
  • Verification of the number of employees and payroll incurred over the most recent 12-month period identifying employees in excess of $100,000
  • Forms 1099-MISC for self-employed individuals

Additional required information may be needed based on SBA published regulations for the PPP application process.

This information is accurate and updated as of April 2, 2020. Terms and conditions are subject to change.


JCB has learned more about the Paycheck Protection Program (PPP) limitations and governmental changes to the program. Since some of these changes could have unintended impact, we want to keep you updated, as we remain dedicated to serving our hardworking small business customers.

It is our hope that these funds are loaned and borrowed in the spirit of the program; i.e., to protect the livelihoods of owners and employees of small businesses.

On Thursday, April 23, JCB was provided official Guidance from the United States Treasury Department. The Treasury notes that as a part of the PPP application, borrowers must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” In making this certification, the Guidance requires that a borrower consider its “current business activity and ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business.”

The Guidance further states that “it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.” The Guidance continues that lenders are still entitled to rely on a borrower’s certification in this respect.

Note, however, that if a borrower applied prior to the issuance of this Guidance and has second thoughts regarding its real need for the loan, a borrower can repay the loan in full by May 7, 2020, and be considered by the SBA to have made the required certification in good faith.

We also learned on Friday, April 24, from the U.S. Treasury that a list of all businesses receiving a PPP loan will be made public and/or a matter of public record. While JCB does not have clarity as to how the list of borrowers will be disseminated or published, we feel that this information is important for our customers to know, in the event they would like to reconsider receiving the PPP loan and want to fully repay the loan prior to the “good faith” deadline on May 7.


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Ashley Abner

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Commercial Banking, Treasury Management

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Emily Shadday

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