Loan Forgiveness PPP Greater Than $150,000
SBA Paycheck Protection Program Loan Forgiveness
The First Hawaiian Bank loan forgiveness portal for borrowers with a 2020 first draw PPP loan greater than $150,000 is now open. An online webform is available for borrowers to request access to the forgiveness portal and begin the application process. If you have any questions, please email PPPForgiveness@fhb.com.
All First Hawaiian Bank PPP customers will apply for forgiveness through an online process. The online process will collect all calculations that are required for your specific application. It will also collect the required supporting documents.
To start the forgiveness process for 2020 first draw PPP loans greater than $150,000, click the link below:
Note: We are not accepting loan forgiveness applications for 2021 first or second draw PPP loans at this time.
The information below will help you prepare to apply for PPP loan forgiveness.
Submit Forgiveness Application
Your application for forgiveness is submitted to FHB for review.
Lender Submits Application to SBA
Upon completion of this stage, FHB will communicate with you.
Up to 60 days
SBA will review your application and upon receipt of its final decision, FHB will communicate with you.
Up to 90 days
- SBA Loan Forgiveness Application – Form 3508 and Instructions
- SBA Loan Forgiveness Application – Form 3508EZ and Instructions
- U.S. Chamber of Commerce Guide to PPP Loan Forgiveness
- U.S. Senate Committee on Small Business & Entrepreneurship
These FAQs are up to date as of 10/8/2020. The information herein is subject to change as the SBA issues additional guidance regarding forgiveness requirements. We strongly encourage you to stay up to date with the forgiveness requirements.
- Our online forgiveness portal will be available soon. The online process will walk you through calculating the forgiveness amount and uploading the required supporting documents. We will notify you when the portal is available.
- You may submit your forgiveness application any time before the maturity date of the loan, if you have used the loan proceeds for which you are requesting forgiveness. However, if you do not apply for forgiveness within 10 months after the last day of your Covered Period (or Alternative Payroll Covered Period), you must begin paying principal and interest.
- Payroll expenses consist of compensation to employees in the form of:
- salary, wages, commissions, or similar compensation;
- cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips);
- payment for vacation, parental, family, medical, or sick leave;
- allowance for separation or dismissal;
- payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement;
- payment of state and local taxes assessed on compensation of employees;
- If you are an independent contractor or sole proprietor: wage, commissions, income, or net earnings from self-employment or similar compensation.
- payments of mortgage interest (not including any prepayment or payment of principal) on any business mortgage obligation on real or personal property incurred before February 15, 2020
- business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020
- business utility payments for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020
The Covered Period is either:
- the 24-week (168-day) period beginning on the date when your PPP loan proceeds were disbursed, or
- if you received your PPP loan before June 5, 2020, you may elect to use the 8-week (56-day) period beginning on the date when your PPP loan proceeds were disbursed.
- If you maintain a biweekly (or more frequent) payroll schedule, you may elect to calculate eligible payroll costs beginning on the first day of your first pay period following disbursement of your PPP loan proceeds. This period is the Alternative Payroll Covered Period.
- For example, if you are using a 24-week Alternative Payroll Covered Period and received your loan proceeds on Monday, April 20, and the first day of your first pay period following its PPP loan disbursement is Sunday, April 26, the first day of the Alternative Payroll Covered Period is April 26 and the last day of the Alternative Payroll Covered Period is Saturday, October 10.
- If you apply for forgiveness before the end of the Covered Period and have reduced any employee salary/wage in excess of 25 percent, there could be adjustments to your forgiveness calculation.
- We recommend consulting your CPA or financial advisor before doing this.
- You must repay the principal and interest amount of the unforgiven portion of the loan in accordance with the terms of the loan.
- FTE stands for full-time equivalent; it measures how many full-time employees you have, along with the number of part-time employees that combine to work 40 hours per week.
- In order to calculate:
- For each employee, enter the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. The maximum for each employee is capped at 1.0.
- You may elect to utilize a simplified method that assigns 1.0 for employees who work 40 hours or more per week and 0.5 for employees who work fewer hours.
Important: One method for calculation of FTEs must be used consistently throughout the forgiveness application.
- Review FHB's Document Checklist
- You will need to document any eligible expenditures or payments that you wish to be counted towards forgiveness
- As part of the forgiveness application, you will need to provide documentation verifying the number of full-time equivalent employees on payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utility payments for the Covered Period (or the Alternative Payroll Covered Period for payroll costs).
- Our online forgiveness application will identify the documents that you need to provide.
- You must certify that the documents are true and correct and that you used the forgiveness amount to make eligible payments and expenditures.
Yes. There is no prepayment penalty. However, you will owe interest.
If all or a portion of the debt is not forgiven, you must pay the balance in monthly installments before the maturity date (with interest accruing at 1.0% from disbursement of the loan through the repayment date). Please see your note for the maturity date. However, if your loan received its SBA Number on or after June 5, 2020, the term of your loan is five years due to changes made by the Paycheck Protection Program Flexibility Act of 2020 (the Flexibility Act). You will be receiving a Notice of Changes shortly explaining the impact of the Flexibility Act.
Also please note that the Flexibility Act allows a borrower up to 10 months after the end of the Covered Period to submit a forgiveness application. Loan payments are deferred until the SBA provides us with its decision on your loan forgiveness application or 10 months after the end of the Covered Period, whichever comes first.
You are exempt from a reduction in your loan forgiveness amount based on a reduction in FTE employees during the Covered Period if you were unable to operate at the same level of business activity as before February 15, 2020 due to federal, state or local COVD-19 requirements related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement