PPP Application and Resources

SBA Paycheck Protection Program Application and Resources

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Applying for a Loan

First Hawaiian Bank will only be accepting PPP loan applications from existing business customers. This is to ensure that we can provide the service and support that our customers need throughout the application process. We are asking all customers that decide to apply for a PPP loan to have a business checking or savings account with us. If you do not currently have one with us, click here to begin the account opening process online.

Use the following tools to assist you in the application process:

Document Icon Quick Start Guide
Download
Documentation Checklist and Payroll Calculator

(Required - You will need to submit this with your application)

Download

First Time Applying for a PPP Loan

SBA First Time Draw Overview

The basic guidelines for first time applications are largely unchanged for most businesses.

At a high level, you are eligible to apply if:

Your organization has 500 or fewer employees (this number is 300 for certain types of businesses)

You are a sole proprietor, independent contractor, or eligible self-employed individual

You are an eligible tax-exempt non-profit, including churches

First draw Application Toolkit

 

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Second Time Applying for a PPP Loan

SBA Second Time Draw Overview

Businesses who have already secured a PPP loan can apply for additional assistance.
At a high level, you are eligible to apply if:

Your organization has 300 or less employees and has seen drops of at least 25% of gross receipts in 2020 compared to the same quarter in 2019

Your current loan does not need to be forgiven before you apply, but you must certify that you have exhausted your existing loan on qualifying expenditures prior to your second loan being funded

Second Draw Application Toolkit

 

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Beginning Monday, January 18 at 9:00 a.m., we will be opening our PPP application portal for existing FHB customers who are second time applicants.

The bullet points above only provide very general eligibility information. Please see the overview documents prepared by the SBA (separate links appear above for first and second draw PPP loans) for a more detailed summary of the eligibility requirements.

FAQs

    Who is eligible to apply?

    Eligible first-time PPP borrowers include (“1st Draw” PPP Borrowers):

    • Eligible small entities that, together with their affiliates (if applicable), have 500 or fewer employees
    • Sole proprietors, independent contractors, and eligible self-employed individuals
    • 501(c)(6) organizations are eligible provided they do not have more than 300 employees and do not receive more than 15% of their funds from lobbying
    • Other eligible nonprofits, including 501(c)(3) organizations and churches

    Eligibility Requirements for Second-Time PPP Borrowers (“2nd Draw” PPP Borrowers). If you already received a PPP loan, you may apply for a second PPP loan if:

    • Current economic uncertainty makes the PPP loan necessary to support ongoing operations
    • Your loan request is $2 million or less
    • Your business, together with affiliates (if applicable), has 300 or fewer employees
    • Your business used or will use the full amount of your first PPP loan on eligible expenditures before disbursement of your second PPP loan
    • Your business can show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019

    The Economic Aid Act clarifies that businesses that were not in operation on February 15, 2020 are not eligible for a PPP loan. Businesses involved primarily in political or lobbying activities are also ineligible for PPP loans. In addition, entities affiliated with the People’s Republic of China and registrants under the Foreign Agents Registration Act are not eligible for a second PPP loan.

    For more information, visit the SBA website here.

      Do I have to receive forgiveness on my existing PPP Loan before I can apply for a Second PPP Loan ("2nd Draw") for this PPP round?

      No, you do not need to have received forgiveness on an existing PPP loan to apply for a second PPP loan.

        How much can I apply for?

        Loans are capped at 2.5 times an applicant’s average monthly payroll costs for the selected payroll period (3.5 times for restaurants and other eligible hospitality businesses for 2nd Draw Loans only).

        Loans are limited to a maximum of $10 million for 1st Draw PPP borrowers and $2 million for 2nd Draw PPP borrowers.

        For more information, visit the SBA website here.

          What can the money be used for?

          The loan proceeds can be used to cover a business’s payroll (at least 60%) and other qualified expenses (no more than 40%), including mortgage interest or rent payments, utilities, covered operations expenditures, and COVID-19 protections for workers.

          For more information, visit the SBA website here.

            What documents will I need to provide?

            Please see the FHB PPP Documentation Checklist, available here.

              Do I need to provide documentation for my 25% revenue reduction when I submit the PPP application?

              The requirement to present the revenue reduction documentation when submitting the PPP loan application only applies to 2nd Draw PPP Loans greater than $150,000.

              2nd Draw PPP loans of $150,000 or less are not required to submit the revenue reduction documentation when submitting the PPP loan application. However, documentation must be provided when applying for PPP forgiveness.

                What are the requirements for potential forgiveness of this next round of PPP Loans?

                To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on eligible payroll expenses over a covered period of 8 to 24 weeks.

                Other uses of the funds that will be potentially forgivable include:

                • Rent, covered mortgage interest, and utilities
                • Covered worker protection and facility modification expenditures, including personal protective equipment to comply with COVID-19 federal health and safety guidelines
                • Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations
                • Covered operating costs such as software and cloud computing services and accounting needs


                Please visit SBA Paycheck Protection Program Loan Forgiveness for information on applying for forgiveness.

                  What is the covered period of the loans?

                  Businesses are allowed to select any period between 8 and 24 weeks.

                  NOTE: This change allows more flexibility for PPP borrowers. Previously, PPP borrowers were required to use a 24 week covered period or to pick either 8 or 24 weeks.

                    What are the interest rate and key terms for this loan?

                    PPP loans have an interest rate of 1% and a 5 year maturity. Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness by 10 months after the end of the covered period, the borrower will be required to start making loan payments.

                    For more information, visit the SBA website here.

                      How long will the program last?

                      Congress set aside an additional $284.5 billion for new and second draw PPP loans. Borrowers can apply for 1st and 2nd Draw PPP Loans until March 31, 2021 or until the PPP funds have been exhausted.

                        Has the PPP Forgiveness been impacted?

                        The new law creates a simplified forgiveness application process for new and existing PPP loans of $150,000 or less.

                        This means a borrower will receive forgiveness if they sign and submit a one-page certification, and no other documentation is required. However, please note that this new simplified forgiveness application and the associated requirements are still in development by the SBA. Also, if a borrower with a 2nd Draw loan of $150,000 or less does not provide documentation of the 25% revenue reduction at the time of loan application, that documentation will need to be provided later in connection with the forgiveness application. 

                          Will the bank pay for any agent fees?

                          Lenders are only required to pay agents when they contract directly with the agent. First Hawaiian Bank will not be contracting with any agents for PPP loans and therefore will not be paying any agent fees. If a borrower has received assistance from an agent, the borrower is responsible for paying the agent’s fees and is not authorized to use funds from the PPP loan for such payment.

                            Where can I get more information on PPP?

                            For more PPP information, visit the SBA website here.

                            For information on applying for a PPP loan, click here to be directed to our FHB PPP Quick Start Guide.

                            We encourage you to visit SBA Paycheck Protection Program Loan Forgiveness webpage often for the information regarding the latest round of the SBA Paycheck Protection Program. Should you have additional questions regarding PPP or the application process, please email PPPQuestion@fhb.com.