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Frequently Asked Questions

Loan Forgiveness & General PPP Questions

Loan Forgiveness  |  Paycheck Protection Program  |  Previously submitted applications

Loan Forgiveness

How much of my loan will be forgiven?

According to current guidance, up to 100% of the loan principal and accrued interest may be forgiven when used for appropriate expenses (examples listed below) during the 8-week period following the loan funding date and if employee and compensation levels are maintained.

  • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
  • Interest on existing mortgage obligations incurred in the ordinary course of business
  • Rent under an existing lease agreement
  • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)

No more than 25% of the amount forgiven may be based on nonpayroll costs. The amount forgiven is reduced if the borrower has a workforce reduction or a reduction in the salary or wages of employees during the calculation period. To better understand requirements to ensure you’ll be eligible for loan forgiveness through the SBA, please review the loan forgiveness form.

We will email you when you are able to apply for loan forgiveness online. Bank of Hawaii will only be accepting a loan forgiveness application through an online submission process on boh.com in the future; please do not fill out the loan forgiveness form and submit to Bank of Hawaii until you receive an email from us.


How do I request loan forgiveness?

We will email you when you can request loan forgiveness online. Please do not fill out the loan forgiveness form and submit to Bank of Hawaii. However, reviewing the loan forgiveness application form now will be helpful for you to understand how your loan forgiveness amount will be calculated and the type of documentation and information you will need to submit. Please note, loan forgiveness will not be automatic; you will need to request forgiveness and provide substantiating documents to Bank of Hawaii to certify and document that you used the loan funds for SBA-eligible purposes. Documents will need to include verification of the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations.

The SBA has not yet confirmed the process for how lenders will submit loan forgiveness to the SBA. In the meantime, please begin to gather the information and identify the required documents that you will need to request loan forgiveness. Note: Additional guidance from the Treasury Department and SBA may change the requirements for forgiveness.


How long is the approval process?

The SBA has not yet confirmed the process or timeframes between the SBA and the lender regarding loan forgiveness. We are awaiting guidance from the SBA.


What if my loan is not completely forgiven?

You will be responsible for the repayment of the loan amount that is not forgiven. Your loan has a fixed interest rate of 1.00% and a term of 2 years. You will not be required to make any loan payments during the first six months, but interest will continue to accrue during that period. If your loan is not completely forgiven, the remaining balance, including interest, will amortize over the last 18 months and monthly payments will be due starting on the seventh month.


Will my loan forgiveness amount be reduced if I laid off an employee, offered to rehire the same employee, but the employee declined the offer?

The SBA and Treasury have indicated that they intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. The SBA has indicated that the interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.


I still have more questions. Where can I find more information?

For the most recent FAQs from the SBA, visit https://www.sba.gov/document/support--faq-lenders-borrowers.

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Paycheck Protection Program

For a complete list of a qualifications and requirements as well as frequently asked questions, please visit the Paycheck Protection Program page on the Small Business Administration’s website.


I am not a Bank of Hawaii customer. What options are available to me?

To find other SBA approved lenders near you, please visit the SBA’s site. Additionally, there may be other SBA programs available to your business. Learn more about other SBA programs for Coronavirus relief.

If my business is ineligible for the PPP, what other options do I have?

Please visit the Small Business Administration website (sba.gov) for more details on available programs.

Does the application request I previously submitted to Bank of Hawaii remain active or will I have to start over?

Your application request will remain active and you will not need to start over. We will continue to review application requests and follow up with you via email or phone to gather additional information and/or documents required to get your application ready to the point of submission to the SBA.

How can I speak to someone about my application request?

Given the nature of this federal loan application process, our Call Center representatives will not be able to provide information on the status of your application, or details about the program. If you have questions, you may send an email to ppploan@boh.com. Please include your reference number and business entity name in your communication. Please be aware that updates may take longer than expected due to a high volume of applicants and inquiries.

How will I know whether my application has been approved?

We will continue to communicate with you through the email address and/or phone number you provided when you submitted your application.

I received an email that my loan was approved. Where can I learn about the requirements for forgiveness?

The SBA has defined the guidelines and requirements for the Paycheck Protection Program (PPP). For all requirements and information about loan forgiveness PPP, please visit the SBA website: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp.

If my business is ineligible for the PPP, what other options do I have?

Please visit the Small Business Administration website (sba.gov) for more details on available programs.

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Previously submitted applications


Does the application request I previously submitted to Bank of Hawaii remain active or will I have to start over?

Your application request will remain active and you will not need to start over. We will continue to review application requests and follow up with you via email or phone to gather additional information and/or documents required to get your application ready to the point of submission to the SBA.


How can I speak to someone about my application request?

Given the nature of this federal loan application process, our Call Center representatives will not be able to provide information on the status of your application, or details about the program. If you have questions, you may send an email to ppploan@boh.com. Please include your reference number and business entity name in your communication. Please be aware that updates may take longer than expected due to a high volume of applicants and inquiries.


How will I know whether my application has been approved?

We will continue to communicate with you through the email address and/or phone number you provided when you submitted your application.


I received an email that my loan was approved. Where can I learn about the requirements for forgiveness?

The SBA has defined the guidelines and requirements for the Paycheck Protection Program (PPP). For all requirements and information about loan forgiveness PPP, please visit the SBA website: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp.


If my business is ineligible for the PPP, what other options do I have?

Please visit the Small Business Administration website (sba.gov) for more details on available programs.

This information is accurate and updated as of May 7, 2020.


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