First Republic Bank (san Francisco, California) · OTC:FRCB
First Republic Bank (san Francisco, California) — First Republic Bank — Conference Presentation (January 2021)
16 slides from First Republic Bank (san Francisco, California)'s conference presentation, Jan 20, 2021
Slide 1: Paycheck Protection Program: Second Draw Loans
Paycheck Protection Program: Second Draw Loans Second Draw Overview First Republic Bank January 20, 2021 Subject to change based on further congressional action, regulatory action or further guidance from the SBA or Department of Treasury.
Slide 2: Disclaimer
Disclaimer A B C This presentation is provided solely for the purpose This presentation is for informational purposes only PPP regulations and the SBA’s loan application are of enhancing general knowledge on the PPP. It does and is not intended, and should not be relied upon, subject to change. Info
Slide 3: General Overview
1 General Overview Page 3
Slide 4: The Economic Aid Act
The Economic Aid Act • Became law on December 27, 2020 • Establishes an additional $284 billion in PPP funding to assist eligible small businesses • Extends bank authority to make PPP loans through March 31, 2021 • Provides for three PPP scenarios: o Second Draw – today’s focus o Round One Changes –
Slide 5: Second Draw Eligibility
Second Draw Eligibility • An organization that accepted PPP funds during the first round (spring and fall of 2020) In operation as of Employ 300 or fewer and is seeking additional aid February 15, 2020 employees and spent all PPP funds on eligible expenses • Businesses, nonprofit and Demonstrate a 2
Slide 6: Eligibility Attestations and Considerations
Eligibility Attestations and Considerations • Interested borrowers are responsible for reviewing and analyzing the SBA regulations, guidance and operating procedures carefully to assess whether they are eligible for a Round 2 PPP loan. • Please be mindful that you are making attestations to the fede
Slide 7: Terms, Conditions and Requirements
Terms, Conditions and Requirements • PPP funds may be used on expanded eligible payroll and non-payroll costs paid or incurred during the Covered Period • Borrowers will have to apply for forgiveness of first and second draw loans • For loan amounts not forgiven, interest rate will be 1%, calculated
Slide 8: Loan Amounts
Loan Amounts Second draw loan amounts are capped at $2 million Payroll documentation required Revenue reductions (applies to all borrowers) • Round One lender can utilize 2019 • Must be evidenced by supporting documents and information on file documents • Lender may request missing information if •
Slide 9: Second Draw Overview
2 Second Draw Overview Page 9 Subject to change based on further congressional action, regulatory action or further guidance from the SBA or Department of Treasury.
Slide 10: Application Preparation
Application Preparation • Clients should work with their tax, legal and accounting advisors to understand their eligibility for a Second Draw loan and to prepare to apply • Decide whether to rely on 2019 vs. 2020 data • If selecting 2019 data as payroll reference, documents must be complete • Any ch
Slide 11: Calculating Loan Amounts
Calculating Loan Amounts Second Draw PPP Loan Employee Cash Compensation * At the election of the eligible entity, payroll + Non-cash compensation/employer payroll costs costs incurred or paid during: + Owner compensation replacement 1-year period before the date on which the loan is made Total An
Slide 12: Calculating Loan Amounts Continued
Calculating Loan Amounts Continued “Payroll costs” refers to: • Employee cash compensation (salary, wages, commission, or cash tips, payment for vacation, parental, family, medical, or sick leave) • Non-cash Payments for the provision of group health care, group life, disability, vision or dental in
Slide 13: PPP Loan Borrower Responsibilities
PPP Loan Borrower Responsibilities To apply for a PPP loan, borrowers are required to submit a complete loan application to the lender that is servicing the loan. This will be completed through an online process. Borrowers are required to provide an accurate calculation of the loan amount and to sub
Slide 14: Top Takeaways
Top Takeaways • The deadline to apply for a Second Draw is March 31, 2021, and the SBA has indicated funds available should be sufficient for the anticipated level of interest. We recommend you take the time to work with your tax, accounting and legal advisors to determine your eligibility as well a
Slide 15: Important Information on the SBA Paycheck Protection Program
Important Information on the Small Business Administration (“SBA”) Paycheck Protection Program The SBA is making the Round 2 PPP loans available on a “first-completed, first-served” basis. Given the strong expected demand, and uncertainties with the SBA process, documentation requirements and progra
Slide 16: Thank you
Thank you. For information and resources, please visit firstrepublic.com/pppsecondround Page 16
First Republic Bank — Conference Presentation (January 2021) on 6ix