COVID Relief Act
In December 2020, Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. This legislation authorizes the IRS to begin issuing a second round of Economic Impact Payments (EIP), (also known as "stimulus" funds) and a second round of Paycheck Protection Program (PPP) funding.
We have compiled a list of resources and FAQs below to better assist you. If you have any questions, please contact your banker or loan officer directly, our Customer Contact Center at (800) 584-8859 or https://www.peoplesbank-wa.com/contact-us, or a business banker near you.
Paycheck Protection Program
Congress authorized another round of Paycheck Protection Program (PPP) funding as part of the COVID relief bill. Peoples Bank is now accepting PPP first and second draw loan applications.
First Draw Applications: Businesses that did not get a PPP loan will be able to apply under the program requirements from earlier this year.
Second Draw Applications: Existing PPP borrowers with less than 300 employees that can show a revenue decline of at least 25% in the same quarter year-over-year may apply for a second loan of up to $2 million.
For information on eligibility, documention required, or to apply for either program, please choose from the selections below:
I am a Peoples Bank customer who did not receive a first round PPP loan from any bank.
I am a Peoples Bank customer who received a first round PPP loan from Peoples Bank.
I am a Peoples Bank customer who received a first round PPP loan from another bank.
I am not a Peoples Bank customer but would like to apply for a first or second draw loan.
Updates to PPP Forgiveness
The new legislation creates a simplified forgiveness application for businesses that took PPP loans $150,000 and under, with no documentation required to be submitted with the application. The updated application consists of a one-page certification that requires the business to list limited information. The SBA will release this form in the coming weeks. Borrowers will still be required to keep the documentation for four years, and the SBA may still audit any loan.
Peoples Bank has paused processing current forgiveness requests $150,000 and under that have been submitted, but will resume once a more streamlined process is created. Once the new process is implemented, we will email you.
While the loan must still be primarily used on payroll, the plan also expands the list of eligible expenses for forgiveness to include property damage, supplier costs, PPE, and other costs for adapting to COVID.
There are a few other beneficial provisions related to tax treatment and EIDL loans. More details on these will come as the program is finalized by the SBA.
Please stay tuned for additional updates regarding the next round of PPP funding and current forgiveness requests. In the meantime, you are encouraged to contact your Commercial Banking Officer at the Bank and/or external resources for any additional guidance as you may need. You may also refer to resources on our website for specific details regarding your Peoples Bank loan: https://www.peoplesbank-wa.com/sba-paycheck-protection. The SBA web site should be your primary resource.
Economic Impact Payments
The IRS and the Treasury Department have begun delivering a second round of Economic Impact Payments (stimulus payments). There is no action required by eligible individuals to receive this Economic Impact Payment.
Customers may begin to see direct deposits of stimulus payments beginning January 4, 2021. Due to the nature and volume of the stimulus payments, we are receiving far more Direct Deposit files than normal, so please be patient as deposits are processed.
For the latest news and information, please visit IRS.gov.
Who qualifies for the second round of payments?
According to the IRS, "Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child."
"Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced." For more information on eligibility, please visit IRS.gov.
If additional legislation is enacted which increases the amount of the payments, an adjustment will be sent at a later date.
How do I check the status of my payment?
The IRS continues to update the Get My Payment portal. We understand the system is still under maintenance. Please continue to monitor IRS.gov for the latest information and updates.
How can I deposit my stimulus check?
Customers who receive a paper check may deposit their stimulus payment into their account via a local branch, Peoples Mobile app, or Peoples Bank ATM. It will typically take one business day for funds to be made available.
What if my account is overdrawn?
Customers whose accounts are overdrawn at the time of their Economic Impact Payment deposit are encouraged to contact our Customer Contact Center at (800) 584-8859 to initiate the Bank’s Overdraft Repayment Program and receive access to their stimulus funds.
What happens if my account is closed?
The IRS clarified that economic impact payment recipients who had their ACH payments erroneously sent to an account that is closed, inactive or a temporary account, will not receive their payment and must instead claim the Recovery Rebate Credit when filing their 2020 tax return electronically.
Where can I find additional resources?
We also encourage you to visit IRS.gov for the latest information about the payments, including answers to questions about eligibility, payment amounts, what to expect, when to expect it, and more.