International Finance Bank is committed to helping our customers and business owners with the Paycheck Protection Program.
As an SBA approved lender, we are currently taking PPP applications. If you are an IFB client, please reach out to your Preferred Banker or Loan Officer directly. For all non-IFB customers, we will review the application submission on a case by case basis and will require an account to be established. If you are not a customer of IFB, please use the email provided below to submit your application.
Please note that customers should not go to the Banking Centers as they will not be able to assist with the online application process.
Thank you for your patience during what we know is a very challenging time.
Interested in the Paycheck Protection Program?
Please send the applications to GovernmentReliefPrograms@ifbbank.com
Paycheck Protection Program Frequently Asked Questions
Below you will find an overview of the Paycheck Protection Program (PPP). As the SBA makes more information available, this FAQ will be updated.
What is the PPP?
The PPP is a federal loan program that helps small and medium sized businesses impacted by the coronavirus (COVID-19) to retain their workforce. The loan is an SBA 7(a) loan with the following terms:
- Up to 4.00% fixed interest rate.
- Deferred payments for first 6-12 months.
- The unforgivable portion of the PPP loan can currently be repaid over 2 years. The SBA sets this payback period and it cannot exceed 10 years.
- Up to 100% of the principal amount may be forgiven after 8 weeks
How is this loan unique?
The Paycheck Protection Program was signed into law in the wake of the COVID-19 global health crisis. One of this program’s significant features is that you can apply for loan forgiveness after receiving the funds. Forgiveness can be up to 100% of the loan amount. Guidance indicates a limit of 25% of the forgiven amount that may be for non-payroll costs. Another unique feature is the loan deferment, meaning you won’t have to pay principal and interest on your loan for the first 6-12 months.
How do I apply for a PPP loan?
This loan will be packaged as an SBA 7(a) loan program. Businesses can apply through International Finance Bank (IFB), a preferred SBA lender (or other qualified SBA lenders). SBA and IFB application fees will be waived for all borrowers. Lenders will have delegated authority to make and approve loans without requiring SBA review or approval – this streamlined process is designed to get capital in the hands of businesses quickly. If you are a current IFB customer, your Preferred Banker or Loan Officer can show you how to apply.
Am I eligible for a loan?
Small and medium sized businesses that were in operation prior to February 15, 2020 with 500 fewer contract or salaried employees, are generally eligible to apply for this loan. Additionally, the business must have paid salaries and payroll taxes and/or independent contractors as reported on Form 1099-MISC.
What is your maximum loan amount?
Calculate your maximum loan amount by taking your business’s average monthly payroll over the prior 12 months and multiplying it by 2.5. Your monthly payroll includes wages, tips, group health, retirement benefits and employer paid taxes, but excludes the amount of compensation to individuals in excess of $100,000. The maximum loan amount is the lesser of that value, or $10,000,000.
Seasonal businesses and businesses not in operation from February 15, 2019 to June 30, 2019 are subject to a different measurement period for purposes of determining average monthly payroll.
What documentation does a business need to provide for the application?
Although we are still waiting for final program details from the SBA, you can begin gathering the information that we believe may be required as part of the application process. Below is a list of documents that IFB believes will be beneficial to you when applying for a Paycheck Protection Program loan:
- 2019 IRS Quarterly 940, 941 or 944 payroll tax reports.
- Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
- Gross wages for each employee, including officer(s) if paid W-2 wages.
- Paid time off for each employee
- Vacation pay for each employee
- Family medical leave pay for each employee
- State and local taxes assessed on an employee’s compensation
- 1099s for independent contractors for 2019
- Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan.
- Include all employees and the company owners.
- Document the sum of all retirement plan funding that was paid by the company owner(s) (does not include funding that came from the employees out of their paycheck deferrals).
- Include all employees, including company owners.
- Include 401K plans, Simple IRA, SEP IRAs.
Last tax returns on file and most recent financial statements.
Will I need to pledge collateral or a personal guarantee to qualify?
No. The Paycheck Protection Program does not require collateral or a personal guarantee.
How long will it take to get my loan proceeds?
Once the SBA releases details on the Paycheck Protection Program and begins to accept loan applications, IFB can approve your loan and disburse funds as fast as possible by wire transfer or ACH payment directly into your IFB business deposit account.
What are the approved uses of loan proceeds?
Approved uses of proceeds include:
- Payroll costs
- Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
- Employee salaries, commissions, or similar compensations
- Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)
- Rent (including rent under a lease payment)
- Interest on any other debt obligations that were incurred before the covered period
What is my interest rate?
The interest rate for Paycheck Protection Program loans is set by the SBA and is currently 0.50% with a maximum of 4.00% fixed. This information is accurate and updated as of April 1, 2020. Terms and conditions are subject to change.
What is the deadline to apply?
The program is administered by SBA lenders and runs through June 30, 2020 contingent upon the availability of program funds.
What if the allocated funds run out prior to my application/funding?
There may be more applicants and requests for loans than available funds. If that occurs, not every qualified applicant will receive loan proceeds under the Paycheck Protection Program.
If I take this loan now, can I get additional SBA funds in the future?
Although we currently understand that the Paycheck Protection Program loan will not affect your future SBA loan funding or total dollars allowed from the SBA, we are awaiting guidance from the SBA on this issue.
How does forgiveness work?
Up to 100% of the principal amount of the loan may be forgiven if you use the proceeds on qualifying expenses. Guidance indicates a limit of 25% of the forgiven amount that may be for non-payroll costs. However, there are certain actions that may reduce the amount of forgiveness, such as reducing the number of employees or reducing employee salaries or wages. We expect that forthcoming SBA guidance will address this issue in greater detail, and look forward to providing more information about the forgiveness process at that time.
If my loan is not forgiven, how much is my monthly payment?
Any amount not forgiven will have an interest rate of up to 4.00% fixed (currently set by the SBA at 0.50%) for a period of up to 10 years (currently set by the SBA at 2 years). Payments will be deferred for 6 months following origination, at minimum, and up to 12 months after origination, at maximum.
If I already have a loan with IFB, can I use these funds to pay that loan?
Yes, customers can use the Paycheck Protection Program loan proceeds to pay IFB interest. However, any amount applied to non-mortgage debt or principal payments will not qualify for loan forgiveness.
I would like to speak with someone to better understand my options. Where can I get help?
If you are a current IFB customer, reach out to your Preferred Banker or Loan Officer. If you are not a IFB customer, we encourage you to email the email shown below to schedule a call with an IFB Loan Officer.
Can I apply for both an Economic Injury Disaster Loan (EIDL) and a loan through the Paycheck Protection Program?
Yes, you can apply for both, but you may only receive proceeds from one loan to use for eligible payroll and related expenses. If you used proceeds from a COVID-19 EIDL to pay payroll and related expenses, you may refinance that EIDL loan with a Paycheck Protection Program loan.
It’s critical for you to weigh all options available to you to ensure the best financial decision for your business. To apply for an EIDL, you must apply directly through the Small Business Administration.
For more information on the EIDL, visit the (External)SBA siteopens in a new window
Is there a web page that customers can be directed to for additional information on the program?
Important Legal Disclosures & Information
For seasonal firms, 2.5x the average monthly payroll for 12-week period starting either February 15th, 2019 or March 1st, 2019 (at the election of the borrower). For businesses without a full year of payroll history, 2.5x the average monthly payroll from January 1st, 2020 to February 29th, 2020.
Program in participation with the SBA.
Patriot Act-Important Information about Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all banks to obtain, verify and record information that identifies each person who opens an account.
What this means to you: When you open an account, we will ask for your name, physical address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license and other identifying documents. If you are opening a new business account, we may also ask to see business authorization and verification documents.
*This is not a commitment to lend. All loans are subject to program requirements and availability of funds under the SBA PPP Program.