Banc of California SBA Loans

We deeply value the relationships we have with our clients. Your Banc of California team is here to support you, help evaluate eligibility for financial assistance through the announced government programs and assist in applying for funds under such program(s).

SBA Paycheck Protection Program – $350B Small Business Relief Package

Congress has passed the CARES ACT, which includes $350 billion allocated for small business relief under the “Paycheck Protection Program” or PPP. Under the PPP, forgivable loans of up to $10 million per company will be available under the SBA 7(a) program. These PPP loans can be used to provide cash-flow assistance to employers who maintain their payroll during this emergency, help workers remain employed and enable affected small businesses to recover from the crisis.

As an SBA Preferred Lender, Banc of California is ready to assist you now to evaluate your eligibility and help you qualify and receive a loan as soon as program funds become available. We expect high demand for the PPP and recommend that you call your Relationship Manager or our dedicated PPP team directly at 877-958-7790​ if you are interested in discussing this further.

The SBA is still finalizing program details, but below please find a summary of the PPP known today and actions you can take to best prepare to apply for a loan under the program.

  SBA Paycheck Protection Program (PPP) Overview – Updated 4/3/2020
Covered Loan Period Retroactive to February 15, 2020, through June 30, 2020
Eligible Businesses All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees whose principal place of residence is in the United States can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.
Loan terms
  • Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
  • Payroll costs include, among other things, salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee).
  • All payments are deferred for 6 months; however, interest will continue to accrue over this period.
  • Interest rate of 1%.
  • Maturity of 2 years.
  • There is no personal guarantee requirement.
Forgiveness
  • The loan amounts will be forgiven as long as:
    • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
    • Employee and compensation levels are maintained.
  • You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • You will also owe money if you do not maintain your staff and payroll.
  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
Loans Can Be User For: You should use the proceeds from these loans on your:

  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.
What You Can Do To Get Started

You can start by gathering documents evidencing payroll costs for 2019.

If your business is ineligible under the PPP, there may be other forms of financial assistance available. Please call your Relationship Manager for further information.

As a preferred SBA lender, we are ready to facilitate access to the Paycheck Protection Program loans once they become available. If you have any questions, please reach out to your Relationship Manager.

We have been proudly serving clients in Southern California, with roots dating back nearly 80 years. Our strength and stability, along with the commitment to building deep relationships with our clients, are what make Banc of California one of the premier banks in Southern California. With over $7.5 billion in assets and significant excess capital, Banc of California has the strength and resources to help you and your business succeed.

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What You Can Do To Get Started

You can start by gathering documents evidencing payroll costs for 2019.

We will update this page regularly as new information becomes available. We are committed to supporting our clients as you navigate these options. For assistance, please call your Relationship Manager or fill out the form on this page and we will contact you.

Here are some additional resources for more information:

The information contained herein is for general informational purposes only and is intended as an overview. The program as described herein is subject to change or cancellation without notice and other material conditions may apply. This is not an offer to lend or otherwise extend a credit or loan of any kind and in no event shall it be construed as a binding agreement or contract of any kind or nature.