SBA Paycheck Protection Program Loan Forgiveness
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.

We will notify you when you can apply for Forgiveness. The information on this page should prepare you to apply.

 

 

PPP Timeline: Submit Forgivenss Application, Lender submits application to SBA, SBA decision.

First Hawaiian Bank has been hosting webinars to assist in the forgiveness process. For further guidance, you can view the recording or the deck. Below are additional helpful resources:

  1. SBA Loan Forgiveness Application – Form 3508
    1. Form 3508 Instructions
  2. SBA Loan Forgiveness Application – Form 3508EZ
    1. Form 3508EZ Instructions
  3. U.S. Chamber of Commerce Guide to PPP Loan Forgiveness
  4. U.S. Senate Committee on Small Business & Entrepreneurship

 

Frequently Asked Questions

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.

  • When can I apply for loan forgiveness?
    1. 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.
    2. 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.
  • What should I do to prepare for loan forgiveness?
    1. Review FHB's Document Checklist
    2. Plan ahead with your CPA, bookkeeper, or accounting department.
    3. Maintain digital copies of all forgivable payments.
    4. Regularly check SBA.gov, Treasury.gov, and fhb.com/sbappp for the latest information.
  • What payroll expenses count towards loan forgiveness?
    1. Payroll expenses consist of compensation to employees in the form of:
      1. salary, wages, commissions, or similar compensation;
      2. 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);
      3. payment for vacation, parental, family, medical, or sick leave;
      4. allowance for separation or dismissal;
      5. payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement;
      6. payment of state and local taxes assessed on compensation of employees;
    2. If you are an independent contractor or sole proprietor: wage, commissions, income, or net earnings from self-employment or similar compensation.
  • What non-Payroll expenses count towards forgiveness?
    1. 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
    2. business rent or lease payments pursuant to lease agreements for real or personal property in force before February 15, 2020
    3. business utility payments for the distribution of electricity, gas, water, telephone, transportation, or internet access for which service began before February 15, 2020
  • What is the 'Covered Period'?
    1. The Covered Period is either:
      1. the 24-week (168-day) period beginning on the date when your PPP loan proceeds were disbursed, or
      2. 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.
  • What is the 'Alternative Payroll Covered Period'?
    1. 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.
    2. 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.
  • What happens if I apply for forgiveness prior to the end of my Covered Period?
    1. 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.
    2. We recommend consulting your CPA or financial advisor before doing this.
  • What happens if I do not meet the requirements for loan forgiveness?
    1. You must repay the principal and interest amount of the unforgiven portion of the loan in accordance with the terms of the loan.
  • What is an FTE and how do I calculate it?
    1. 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:
      1. 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.
      2. 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.
  • What documents will I need to provide to qualify for loan forgiveness?
    1. Review FHB's Document Checklist
    2. You will need to document any eligible expenditures or payments that you wish to be counted towards forgiveness
    3. 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).
    4. Our online forgiveness application will identify the documents that you need to provide.
    5. You must certify that the documents are true and correct and that you used the forgiveness amount to make eligible payments and expenditures.
  • How will I know if I should use the 'EZ' application?
    1. In order to determine if the simplified FORM 3508EZ is for you, please review the qualification criteria at the top of the application instructions, found here.
    2. You may also view our readiness guide for help
  • Can I give back the loan if I no longer need it?
    1. Yes. There is no prepayment penalty. However, you will owe interest.
  • What if my loan is not forgiven?
    1. 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.
  • What if I cannot open up my business within the 8 weeks because of stay at home orders?
    1. 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