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Business

At Truist, we’re committed to helping our clients weather this storm.

Through the first phase of the Paycheck Protection Program (PPP)—part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act—Truist helped businesses secure what’s expected to be approximately $10 billion in loans. Now with additional PPP funding, thousands of our teammates continue to process applications so we can help as many businesses as possible.

A Message from Our Chairman and Chief Executive Officer

Kelly King, CEO Truist Bank

In these difficult times, small business owners, in particular, are facing hard choices, and there are no easy solutions. The unprecedented amount of requests we and other lenders have received for the Paycheck Protection Program (PPP) clearly demonstrates just how much help is needed.

Here at Truist, our purpose to inspire and build better lives and communities has been the guiding principle for our COVID-19 relief efforts, which you can learn more about here. Along with other client relief measures we’ve put into place, we’ve also mobilized thousands of teammates to help meet the extraordinary demand for help offered through the PPP. As we work diligently to meet the needs of our small business clients, please know PPP applications have been handled without preference for larger or more affluent clients.

As one of the first companies to offer an online process, Truist was one of the most active lenders in the country for the first round of the PPP. We expect to fund approximately $10 billion of PPP loans with an average loan size of $323,000. Collectively, our teammates’ efforts have enabled more than 32,000 business clients to keep an estimated one million people employed. Our teams are working long hours—oftentimes into the early morning—to get our clients the help they need.

While we’re honored to provide help to so many clients, a critical need remains. That’s why we’ve continued to process applications in anticipation of the Small Business Administration’s announcement to resume accepting PPP loan applications. Truist stands ready to provide additional help to the small business owners who bring the growth, jobs and innovation we need in our communities.

Our clients are at the heart of what we do and our very reason for being. We are sincerely committed to help you and our other business clients navigate this crisis.

Kelly King signature

Kelly S. King
Truist Chairman and Chief Executive Officer

Latest update

Paycheck Protection Program

With the Small Business Administration reopening their system for a second round of PPP loans, Truist can continue to provide critical financing for many eligible businesses. In anticipation of additional funding, we’ve had thousands of teammates continue to process applications.

Due to enormous interest in the PPP and the unprecedented volume of applications we’ve received, we’re no longer accepting new PPP applications. We will continue to closely monitor potential developments for the PPP and provide email updates to all who have applied for a loan or registered on our website. Given the extraordinary demand for PPP loans, not every qualified applicant will receive a loan under the PPP from Truist.

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PPP and CARES Act FAQ

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Unfortunately, given the unprecedented volume of applications we’ve already received, we’ve made the difficult decision to no longer accept new applications. If circumstances change, we’ll reach out to you immediately with an update.

We encourage you to work with your banker to explore other lending options. Although not specifically related to your business, there are also a number of relief efforts we’re offering all of our clients.

We understand your frustration of going through the application process and not being issued a PPP loan. During the first round of funding, Truist teams worked hard to secure what’s expected to be approximately $10 billion in loans for the applications we could process. In anticipation of additional funding, we’ve had thousands of teammates continue to process applications.

If you submitted a completed PPP application and all required documentation, our teammates are working diligently to review them. There’s nothing more for you to do at this time. Given the unprecedented demand for PPP loans we’re experiencing, we cannot guarantee every qualified applicant will receive a loan under the PPP.

We encourage you to work with your banker to explore other lending options. Although not specifically related to your business, there are also a number of relief efforts we’re offering all of our clients.

Unfortunately, given the unprecedented volume of applications we’ve already received, we’ve made the difficult decision to no longer accept new applications. If circumstances change, we’ll reach out to you immediately with an update.

We encourage you to work with your banker to explore other lending options. Although not specifically related to your business, there are also a number of relief efforts we’re offering all of our clients.

We’ve processed PPP applications without preference for larger or more affluent clients. The application review process is affected by factors such as when we receive the application and clients submitting complete and accurate supporting documentation.

If you submitted a completed PPP application and all required documentation, our teammates are working diligently to review them. There’s nothing more for you to do at this time. Given the unprecedented demand for PPP loans we’re experiencing, we cannot guarantee every qualified applicant will receive a loan under the PPP.

If you haven't submitted an application, given the unprecedented volume of applications we’ve already received, we’ve made the difficult decision to no longer accept new applications. If circumstances change, we will reach out to you immediately with an update.

We encourage you to work with your banker to explore other lending options. Although not specifically related to your business, there are also a number of relief efforts we’re offering all of our clients. 

If you submitted a completed PPP application and all required documentation, our teammates are working diligently to review them. There’s nothing more for you to do at this time. Given the unprecedented demand for PPP loans we’re experiencing, we cannot guarantee every qualified applicant will receive a loan under the PPP.

If you have not submitted an application, given the unprecedented volume of applications we’ve already received, we’ve made the difficult decision to no longer accept new applications. If circumstances change, we’ll reach out to you immediately with an update.

We encourage you to work with your banker to explore other lending options.

Yes. Congress has authorized additional funding for the Paycheck Protection Program. Truist was one of the most active PPP lenders in the country for the first phase of the Paycheck Protection Program, helping businesses with expected funding of approximately $10 billion in loans with an average loan size of $323,000. With the Small Business Administration reopening their system for a second round of PPP funding, Truist can continue to provide critical financing for many eligible businesses. In anticipation of additional funding, we’ve had thousands of teammates continue to process applications.

If you submitted a completed PPP application and all required documentation, our teammates are working diligently to review them. There’s nothing more for you to do at this time. Given the unprecedented demand for PPP loans we’re experiencing, we cannot guarantee every qualified applicant will receive a loan under the PPP.

If you haven’t submitted an application, given the unprecedented volume of applications we’ve already received, we’ve made the difficult decision to no longer accept new applications. If circumstances change, we will reach out to you immediately with an update.

We also encourage you to work with your banker to explore other lending options. Although not specifically related to your business, there are also a number of relief efforts we’re offering all of our clients.

In anticipation of additional funding for the PPP, we’ve had thousands of teammates continue to process applications. If you’ve submitted a completed PPP application and all required documents, there’s nothing more for you to do at this time. Unfortunately, given the volume of applications we’re trying to process as quickly as possible, we’re not able to answer questions here on the status of specific applications.

Please note that due to the unprecedented demand for PPP loans we’re experiencing, we cannot guarantee every qualified applicant will receive a loan under the PPP. Our teammates are working diligently to review. Please check the PPP Client Portal regularly for updates.

We also encourage you to work with your banker to explore other lending options. Although not specifically related to your business, there are also a number of relief efforts we’re offering all of our clients.

If you’ve submitted a completed PPP application and all required documents, there’s nothing more for you to do at this time. Unfortunately, given the volume of applications we’re trying to process as quickly as possible, we’re not able to answer questions here on the status of specific applications. Our teammates are working diligently to review applications.

Part of the funding approval process rests with the Small Business Administration. Timing for this is difficult to forecast as it is not in our direct control, and it could affect if and how quickly you receive your funds.

The Small Business Administration has outlined strict requirements for documentation. As applications go through the review process, any issues with the application, including inaccurate information or incomplete documentation, could delay your ability to get through the approval process, and you may lose your place in the queue. In the event we contact you for additional information, it is extremely important that you respond immediately in order to keep your loan application on track for a final funding decision. We encourage you to check the PPP Client Portal regularly for updates.

If you’ve already submitted a completed PPP application and all required documents, our teammates are working diligently to review them. There is nothing more for you to do at this time. We’re no longer accepting new applications given the unprecedented volume of applications we’ve already received.

Please note that, due to the unprecedented demand for PPP loans we’re experiencing, we cannot guarantee every qualified applicant will receive a loan under the PPP. We also encourage you to work with your banker to explore other lending options.

If you’ve submitted the signed promissory note, there’s nothing more for you to do at this time.

It’s difficult to forecast timing given the volume of applications we’re processing. The good news is that the next step is to expect the funds to be deposited into the account you provided during the application process.

In the meantime, we encourage you to review the Program Rules and Frequently Asked Questions provided on the U.S. Department of the Treasury website opens in a new tab that outline requirements and your responsibilities under the PPP.

The SBA guidance on PPP loan forgiveness continues to evolve and we encourage you to monitor this guidance and what it means for you and your business.

On May 15, 2020, the SBA released the PPP Loan Forgiveness Application. If you applied for a PPP loan through Truist and received funding, we’ll provide next steps for you soon on how to prepare for the forgiveness application period in June. When it’s time, you’ll complete your forgiveness application through our PPP Client Portal. For now, there are no other steps you need to take.

Here's some more information on loan forgiveness based on guidance from the SBA:

1. PPP loans will be forgiven if you meet the criteria for how your loan proceeds were applied in the period after you received your PPP loan funding:

  • Payroll costs, including benefits
  • Interest on mortgage obligations (for mortgage loans entered before February 15, 2020)
  • Rent (under lease agreements in force before February 15, 2020)
  • Utilities (service began before February 15, 2020)

The SBA’s PPP rules require that at least 75% of forgivable loan amounts be attributed to payroll costs. So, no more than 25% of forgivable loan amounts can be attributed to non-payroll costs. The SBA may issue more guidance adding additional requirements for borrowers, including demonstrating eligibility to receive PPP loan funding.

2. The loan forgiveness amount depends on your documented payroll costs and non-payroll costs over an eight-week period. The eight-week period begins on the date Truist made the first disbursement of the PPP loan to your business.

3. If use of all, or a portion of, PPP funding doesn’t meet the criteria for loan forgiveness, you’ll continue to owe principal and interest on your PPP loan. You’ll also be ineligible for loan forgiveness and continue to owe principal and interest if you don’t maintain staff and payroll during specified periods. Specifically:

  • Number of staff – Loan forgiveness will be reduced if the full-time employee headcount is reduced compared to earlier, specified periods.
  • Level of payroll – Loan forgiveness will also be reduced if salaries and wages are decreased compared to an earlier, specified period by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-hiring – Borrowers have until June 30, 2020 to restore full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

We strongly encourage you to keep detailed records of how your business is using PPP funds. Clear documentation will help you through the loan forgiveness process. If you’ve received funding from Truist, we’ll contact you about how to request loan forgiveness once we have additional guidance from the SBA.

For more information on loan forgiveness and the PPP, please continue to visit the SBA's website opens in a new tab as well as the CARES Act section of the Treasury’s website opens in a new tab

As a reminder, it is the borrower’s sole responsibility to determine and certify their eligibility to receive a loan under PPP. In addition to reviewing the affiliation rules to determine eligibility, all borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations.

On April 23, 2020, the U.S. Government issued regulatory guidance making clear that a PPP loan applicant must review carefully the applicant’s required certification that “current economic uncertainty make this loan request necessary to support the ongoing operations of the Applicant.” This guidance:

  • Directs each applicant to take into account its current business activity and its ability to access other sources of liquidity sufficient to support its ongoing operations in a manner that is not significantly detrimental to the business.
  • Notes, by way of example, that it is unlikely that a public company with substantial market value and access to capital markets would be able to make the required certification in good faith, and such a company should be prepared to demonstrate to the Small Business Administration (SBA), upon request, the basis for its certification.
  • Provides that any borrower that applied for a PPP loan prior to the issuance of the guidance (which was issued on April 23, 2020 as Frequently Asked Question 31) and repays the loan in full by May 7, 2020 (later extended to May 18, 2020), will be deemed by the SBA to have made the required certification in good faith. The SBA subsequently issued an Interim Final Rule on April 24, 2020, which clarifies, among other things, this limited safe harbor with respect to the required certification concerning need for a PPP loan for any borrowers who repay their loans by the required deadline. View the April 24, 2020 Interim Final Rule opens in a new tab. The SBA has since issued additional guidance extending the repayment deadline for this safe harbor from May 7, 2020 to May 18, 2020 (see SBA’s Frequently Asked Questions 47, which was issued on May 13, 2020).

Additionally, to further ensure PPP loans are limited to eligible borrowers in need, the SBA has decided—in consultation with the Department of the Treasury—that it will review all loans in excess of $2 million, in addition to other loans as appropriate (see SBA’s Frequently Asked Question 39, which was issued on April 29, 2020). The SBA will perform this review following the lender’s submission of the borrower’s loan forgiveness application.

In reviewing borrowers’ required good-faith certification concerning the necessity of their PPP loan request, the SBA—in consultation with the Department of the Treasury—has determined that the following safe harbor will apply: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith (see SBA’s Frequently Asked Question 46, which was issued on May 13, 2020). Importantly, borrowers with loans greater than $2 million that do not satisfy this safe harbor may still have an adequate basis for making the required good-faith certification, based on their individual circumstances in light of the language of the certification and SBA guidance. As noted above, the SBA has previously stated that all PPP loans in excess of $2 million, and other PPP loans as appropriate, will be subject to review by SBA for compliance with program requirements set forth in the PPP Interim Final Rules and in the Borrower Application Form. If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness. If the borrower repays the loan after receiving notification from SBA, SBA will not pursue administrative enforcement or referrals to other agencies based on its determination with respect to the certification concerning necessity of the loan request.

View PPP statutory and regulatory guidance opens in a new tab applicable to all applicants.

View FAQ from the SBA and the Department of Treasury opens in a new tab for complete guidance on the PPP.

It depends on the stage of your SBA 7(a) loan deferral. See below for additional information.

I want to request a new deferment: Any new deferment will prevent you from receiving Section 1112 payment relief. SBA guidelines for Section 1112 state that once the 6-month period of payments begin, the period must be continuous and may not be interrupted by a deferment period. Truist has already received the first month’s payments for its 7(a) borrowers under the Section 1112 program, and any new deferments will prevent these borrowers from receiving any additional funds under the program.

I already have a deferment that was processed prior to April 15th, 2020: You may voluntarily decide to end your deferment period early in order to begin the 6-month period of Section 1112 payments, OR you can chose to remain in deferment, and begin receiving Section 1112 payments in the month after your deferment ends. Truist informed these borrowers by mail and provided additional guidance on all relevant options.

I submitted a deferral request on or after April 15th, 2020: Truist is in the process of reversing these deferments, and you will be contacted and informed of the deferment reversal and continued participation in the Section 1112 payment relief program. Following the six-month Section 1112 period, Truist will consider deferment requests on 7(a) loans.

Disclosures

All loans are provided by Truist Bank and are subject to credit approval and program guidelines.  Loans by the SBA or guaranteed by the SBA are subject to SBA eligibility guidelines.  Certain restrictions and exclusions apply to refinancing options for SBA loans and are subject to program terms. Truist Bank does not provide tax advice and recommends that you consult an advisor regarding your particular financial situation.

This information does not constitute advice and does not cover all aspects of the law, including provisions that may be relevant to, or apply differently to, your business, your employees and/or your shareholders. For any specific questions about the CARES Act and how it may impact your business, we strongly encourage that you contact your legal counsel and your business contacts at Truist.

Nothing prevents a borrower from retaining professionals to assist in preparing the information we need to process your loan. As is customary in lending transactions, Truist, as lender, will not pay the costs of professionals that our borrowing clients choose to retain.

Truist Bank, Member FDIC and Equal Housing Lender. Only deposit products are FDIC insured. Loans are subject to business type and credit approval. © 2020 Truist Financial Corporation. All rights reserved.