Click here to open or close the menu

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 eligible expenses subject to certain limitations and requirements.


What are eligible expenses for loan forgiveness?

The following expenses may be eligible for loan forgiveness:

  • 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)

To receive full or partial loan forgiveness, in addition to other limitations and requirements, at least 60% of the loan amount must be used for payroll costs.


What is the loan forgiveness covered period?

The covered period begins on the date of loan disbursement and ends eight weeks later. There may be flexibility to calculate payroll costs using an alternative payroll covered period that aligns with your regular payroll cycles. Additionally, the Paycheck Protection Program Flexibility Act of 2020 allows borrowers to extend the eight-week period to 24 weeks from date of loan disbursement, or December 31, 2020, whichever is earlier.


How do I request loan forgiveness?

We will email you once you are able to apply for forgiveness. Applications for loan forgiveness applications will only be accepted online via boh.com. Please do not fill out the SBA loan forgiveness form and submit to Bank of Hawaii until we begin accepting forgiveness applications online. 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, and anything else the SBA may require. 


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, or a term of 5 years if your loan was approved by the SBA (based on the date the SBA assigns a loan number) on or after June 5, 2020.

You will not be required to make any loan payments during the deferral period. Payments are deferred until the date that the SBA remits the borrower’s loan forgiveness amount to lender. For those who do not apply for forgiveness, the deferral period will be for 10 months after the forgiveness covered period.


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.

Back to top

 

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.

Back to top

 

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.


Back to top

Return to COVID-19 business main page

Your privacy

We use cookies to improve your experience on our site, show you personalized content, and analyze our traffic. By continuing to use this site, you agree to our use of cookies as described in our Online Privacy Policy.

You're about to exit BOH.com

Links to other sites are provided as a service to you by Bank of Hawaii. These other sites are neither owned nor maintained by Bank of Hawaii. Bank of Hawaii shall not be responsible for the content and/or accuracy of any information contained in these other sites or for the personal or credit card information you provide to these sites.