• First draw PPP loans for businesses.
• Existing first draw PPP borrowers that have not already received a forgiveness payment from the SBA. They may: (1) reapply for a first draw PPP loan if they previously returned some or all of their first draw PPP loan funds, or (2) under certain circumstances, request to modify their first draw PPP loan amount if they previously did not accept the full amount for which they are eligible.
• Second draw PPP loans for businesses that previously obtained a PPP loan, but need additional funding.

When Regions resumes accepting PPP loan applications on April 13, we will only accept applications from eligible Regions customers. Eligible customers include:

• Customers who established a business banking relationship on or prior to January 31, 2021
• Customers who received a first draw PPP loan with Regions AND are applying for a second draw loan through our PPP Portal

You must have a Regions deposit account for business before any PPP loan funds can be disbursed through Regions. If you don't have a Regions deposit account for business, speak to your Regions Relationship Manager or make an appointment at your local branch.

Since the inception of the PPP, the U.S. Treasury and the SBA have continually updated their guidelines. Regions recommends borrowers check for updates regarding the PPP loan process, including how they may use the proceeds, which expenses may be paid using the proceeds, and any additional guidance that may be issued on loan forgiveness. This information is available at the SBA website or at the U.S. Treasury website.

Further, you should study SBA rules carefully and should consult with your attorney, accountant, or other professional advisor to discuss how recently enacted legislation and SBA rules may specifically impact your particular situation.

Access the Regions PPP Portal to complete your PPP loan application.

When Regions resumes accepting PPP loan applications on April 13, we will only accept applications from eligible Regions customers. Eligible customers include:

• Customers who established a business banking relationship on or prior to January 31, 2021
• Customers who received a first draw PPP loan with Regions AND are applying for a second draw loan through our PPP Portal

You will need to enroll now, before you get started. If you forgot your Regions Online Banking credentials or need assistance, you can reset your Online ID and Password here or call 1-800-REGIONS (734-4667).

In order to access a second draw PPP loan application, you must first authenticate and access your existing PPP loan. You will need the following information to access your existing PPP loan:

• SBA PPP 7(a) Loan Authorization Number
• Loan Amount
• TIN (SSN or EIN)

The SBA loan number is on the table at the top of your original SBA Note (SBA Form 147) that was part of your PPP loan package.

The Regions loan number is the unique identifier for your PPP loan on Regions' loan system and is used when making loan payments and inquiries. The SBA loan number is the unique identifier of your loan on SBA's E-Tran system, and is utilized in the PPP process. You will not need to know your Regions loan number prior to applying. It will be provided to you in the online application process.

You will receive an email from Regions indicating we have received your application, and we will begin our review and validation process. We will contact you via email if we need additional information or documentation.

After applying online through the Regions PPP Portal, you may log in to check the status of your application. Regions will email you periodically throughout the process, as well. Regions, via DocuSign, will email you a final copy of your loan documents to execute via electronic signature.

Borrowers applying for a PPP loan must submit payroll documentation to support the loan amount, unless the borrower is applying for a second draw PPP loan and submitted this documentation to Regions for the borrower's first draw PPP loan.

To be eligible for this exception, the borrower must be applying for a second draw PPP loan, Regions must have provided the borrower's first draw PPP loan, and the borrower must have used calendar year 2019 figures to determine both its first draw PPP loan amount and its Second Draw PPP loan amount.

In addition, borrowers applying for a second draw loan of more than $150,000 must provide documentation sufficient to establish that the borrower experienced a 25 percent revenue reduction. Borrowers applying for a second draw loan of $150,000 or less benefit from a streamlined application process and do not need to supply documentation of the 25 percent revenue reduction at the time of loan application. However, they will need to supply this documentation when they file a forgiveness application or, if they do not apply for forgiveness, at SBA's request.

Payroll documentation to support loan amount, if required:

• Borrowers who are not self-employed:
  • Form 941 (or other tax forms) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever was used to calculate loan amount), as applicable, or equivalent payroll processor records
  • Evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions
  • If a partnership, IRS Form 1065 K-1s
• Borrowers who are self-employed and have employees:
  • IRS Form 1040 Schedule C from 2019 or 2020 (whichever was used to calculate loan amount)
  • Form 941 (or other tax forms) and state quarterly wage unemployment insurance tax reporting forms from each quarter in 2019 or 2020 (whichever was used to calculate loan amount), as applicable, or equivalent payroll processor records
  • Evidence of any retirement and employee group health, life, disability, vision and dental insurance contributions
  • Payroll statement or similar documentation from pay period covering February 15, 2020
• Borrowers who are self-employed and do not have employees:
  • IRS Form 1040 Schedule C from 2019 or 2020 (whichever was used to calculate loan amount)
  • 2019 or 2020 (whichever was used to calculate loan amount) IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice, bank statement, or book of record that establishes that borrower is self-employed
  • 2020 invoice, bank statement, or book of record establishing borrower was in operation on or around February 15, 2020

Payroll documentation to support 25 percent Revenue Reduction, if required:

• Documentation showing borrower experienced a 25 percent or more reduction in revenue, which may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, a copy of the applicant's quarterly income statements or bank statements

Proof of identity:
Color copy of an unexpired, government-issued identification for all owners that maintain 20 percent equity or more in the business.

Regions will notify you by email if the application you submit is incomplete. We will provide a list of documents needed in order to complete your application. For additional information on documents required by the SBA, visit the SBA PPP site or the U.S Treasury page.

Once Regions receives final approval from the SBA, you will receive an email linking to the DocuSign system to electronically execute your final loan closing package. Instructions for electronically completing and returning the loan closing package to Regions will be included in the link. After we receive the executed loan package and confirm it is complete, we will disburse funds into your Regions deposit account for business.

Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees – including nonprofits, veterans' organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contractors – can apply. Entities with more than 500 employees in certain industries that meet SBA's alternate size standard or SBA's size standards for those particular industries can also apply.

There is funding available for first draw PPP loans for business that were in operation on February 15, 2020, meet the eligibility requirements of the PPP, and did not receive funding prior to the January 19, 2021, round of the PPP. Review information available at the SBA website or at the U.S. Treasury website to determine if you are eligible and to help you prepare for applying.

First draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damages costs caused by looting or vandalism in 2020, and certain supplier costs and expenses for operations.

First draw PPP loans made to eligible borrowers qualify for full loan forgiveness if, during the 8- to 24-week covered period following loan disbursement:

• Employee and compensation levels are maintained;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.

The maximum for a first draw PPP loan is calculated based on your payroll costs (generally, 2.5 x average monthly 2019 or 2020 payroll costs), but never more than $10 million, the same as in the original PPP.

A borrower is generally eligible for a second draw PPP loan if the borrower:

• Previously received a first draw PPP loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees; and
• Can demonstrate at least a 25 percent reduction in gross receipts between comparable quarters in 2019 and 2020.
  • Alternative methods for calculating reduction in revenues is set forth in subsection I(1)(iv) of the Second draw PPP loans IFR.
  • For loans with a principal amount of $150,000 or less, the applicable revenue reduction documentation is not required at the time the borrower submits its application for a loan, but it must be submitted on or before the date the borrower applies for loan forgiveness.

Second draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, 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.

Second draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

• Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.

The maximum loan amount is calculated based on your payroll costs, but never more than $2 million. For most borrowers, the maximum loan amount of a second draw PPP loan is 2.5 times the average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the accommodation and food services section (i.e., borrowers assigned a NAICS codes beginning with 72), the maximum loan amount for a second draw PPP loan is 3.5 times average monthly 2019 or 2020 payroll costs up to $2 million.

As long as you meet other eligibility requirements, you may apply for a second draw PPP loan at Regions even if you received your first draw loan through another lender. Regions has enhanced the PPP Portal to accept such applications.

Second draw PPP loans are generally subject to the same terms, conditions, and requirements as first draw PPP loans. These includes, but are not limited to the following terms:

• The guarantee percentage is 100 percent
• Normal SBA collateral requirements are waived
• No personal guarantees required
• 1% interest rate calculated on a non-compounding, nonadjustable basis
• The maturity is five years

PPP loans can be used for payroll and nonpayroll costs. A borrower must use at least 60 percent of its PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amounts may be attributable to nonpayroll costs.

To receive full loan forgiveness, a borrower must use at least 60 percent of the PPP loan for payroll costs, and not more than 40 percent of the loan forgiveness amount may be attribute to nonpayroll costs.

What are eligible payroll costs?

Payroll costs include gross compensation to employees (whose principal place of residence is the United States) 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 dismissal or separation.
• Payment for the provision of employee benefits consisting of group health coverage (including insurance premiums) and retirement
• New: includes group benefits are defined to include group life, disability, vision or dental insurance
• Payment of state and local taxes assessed on compensation of employees
• For an independent contractor or sole proprietor, wages, commissions, income, or net earnings from self-employment, or similar compensation

The following is expressly excluded from the definition of payroll costs:

• Any compensation of an employee whose principal place of residence is outside the United States
• Compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary
• Federal employment taxes imposed or withheld between February 15, 2020, and June 30, 2020, including the employee's and employer's share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be withheld from employees
• Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Pub. L. 116-127)

See payroll costs questions 5, 6, 7, and 8 starting on page 3 of the SBA's Frequently Asked Questions (FAQs) on PPP Loan Forgiveness for detail regarding incentive pay (including lost tips, lost commissions or bonuses), eligible employer expenses for group health care benefits, employee retirement and owner compensation.

What are eligible nonpayroll costs?

• Interest payments on any business mortgage obligation on real or personal property
• Rent payments on business rent obligations on real or personal property under a lease agreement
• Business utility payments for the distribution of electricity, gas, water, transportation, telephone or internet access
• NEW: Covered worker protection modification expenditures, including personal protective equipment
• NEW: Covered property damage costs related to property damage and vandalism or looting due to public disturbances in 2020 that were not covered by insurance or other compensation
• NEW: Covered supplied costs, which refer to expenditures to suppliers of goods that are essential at the time of purchase to your current operations and made pursuant to an eligible contract order or purchase order
• NEW: Covered operations expenditures, which refer to payments for any business software or cloud computing service that facilitates business operations; product or service delivery; the processing, payment, or tracking of payroll expenses; human resources; sales and billing functions; or accounting or tracking of supplies, inventory, records and expenses.

A business must have been in operation on February 15, 2020, to be eligible.

No.