CARES Act Paycheck Protection Program

PPP loan applications must be SBA-approved by June 30, 2020 to guarantee funding. In order to allow enough time to complete the review and verification process, Umpqua is not accepting applications after 5pm PDT on June 26, 2020.



On June 5, 2020, the Paycheck Protection Program Flexibility Act (PPPFA) was signed into law. This new legislation makes some material changes to Paycheck Protection Program (PPP) loans for existing and prospective borrowers. The PPPFA is primarily aimed to provide borrowers additional time to qualify for forgiveness and decrease the percentage of the forgivable loan proceeds which must be used for payroll costs.

Changes resulting from this new legislation are now reflected below.



The SBA PPP rules and guidance available on the U.S. Treasury website include helpful resources that we would encourage applicants to review.

Please be mindful that the application asks applicants to certify that the current economic uncertainty makes this loan necessary to support the applicant’s ongoing operations. This certification is made in good faith and the applicant should consider their current business activities and general access to liquidity resources to support their business operations when finalizing their request.

If you intend to submit an application, please make note of the following details:

You will need ONE of the following tax documents: 

      • Form 941 for 2019: Employer’s QUARTERLY Federal Tax Return, for all four quarters of 2019, or…

      • Form 944 for 2019: Employer’s ANNUAL Federal Tax Return, or…

      • 2019 Complete 1040 Tax Returns, if filed, (or) 2018 Complete 1040 Tax Returns if 2019 1040 is not yet filed for sole proprietors.

You will also need:

      • Summary of borrower’s payroll registry on or around February 15th, 2020. 

Additional requirements:

      • Tax and payroll documents submitted must be fully accessible (no password protected documents). 

      • Applications will NOT be accepted from:
        • Businesses with one or more loans 30+ days late in repayment.
        • Businesses with loans that have charge-offs.
        • Businesses in bankruptcy.



The Paycheck Protection Program (PPP) is a federal loan program aimed at helping small businesses who have been impacted by COVID-19 retain their workforce. The loan is an SBA 7(a) loan with the following terms, with more details still to be provided by the Small Business Administration (SBA).

  • Availability: Available for businesses “substantially affected by COVID-19,” interpreted as:
    • supply chain disruptions
    • staffing challenges
    • a decrease in sales or customers; or shuttered businesses
  • Eligibility: Businesses (includes sole proprietorships, 501(c)(3) nonprofit organizations, 501(c)(19) veterans’ organizations, and 31(b)(2)(C) tribal business) with 500 or less, whose principal place of residence is in the United States, in operation on February 15, 2020. Certain businesses with over 500 employees may qualify if they meet SBA industry size standards. Business with affiliations may also qualify and should review SBA guidance to determine eligibility.
  • Loan Maximums: Maximum loan amount up to $10,000,000, under the below terms.
  • Funds Usage: Funds may be used for:
    • Payroll and related cost (administrative, sick leave, group health premiums)
    • Mortgage payments
    • Rent
    • Utilities
    • Interest on debt obligations incurred before February 15, 2020
  • Loan Payment Deferral: Loan payments can be deferred for 10 months after the end of the covered period or until a decision on forgiveness is rendered (whichever comes earlier).
  • Loan Terms: Generally, the maximum loan amount will be 2.5 times monthly payroll (250% of average monthly payroll) plus the outstanding EIDL loan amount (not to exceed $10,000,000). 
  • EIDL Loans and Paycheck Protection Program: Businesses that received EIDL (Economic Injury Disaster Loans) between February 15, 2020 and April 3, 2020, have the option to refinance these loans under the parameters of the Paycheck Protection Program; the amount of the EIDL loan used for payroll costs must be included in a PPP application.
  • Eligibility for Loan Forgiveness: Loan forgiveness amounts are predicated upon maintaining payroll continuity and other allowable costs during the covered periods (24 weeks from loan origination). Calculation of amount forgiven is based on total payroll cost and payments made on debt during covered period; no less than 60% of loan funds must be applied to payroll costs for consideration of full forgiveness, partial forgiveness will be calculated for lesser amounts attributed to payroll costs. Documentation for loan forgiveness will include Federal and State tax filings, financial statements verifying payment of debt obligation and other documentation.


  • SBA resources available HERE, which includes information on:
    • The SBA’s 6-month payment relief, which may be available if your business has an existing SBA loan.
    • The Economic Injury Disaster Loan (EIDL), which may be an option for either a low interest loan or advance. You can apply for this program directly with the SBA (utilizing an EIDL would not disqualify your business from receiving a PPP loan).
  • The Umpqua Bank PPP Loan Resource Hub is available here for more information on PPP loans and forgiveness.

Information is subject to change