COVID-19

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Business Customers

Frequently Asked Questions

Business Customers

Frequently Asked Questions

ABOUT THE PAYCHECK PROTECTION PROGRAM

Please visit the SBA PPP website for the latest information on how PPP loans can be used.

Unfortunately, there are individuals out there who are trying to take advantage of small businesses during the COVID-19 pandemic, making an already stressful time more difficult. The SBA had previously warned loan applicants to beware of email phishing scams, and recently the FBI has warned of cyber criminals targeting customers of prominent companies - including banks. These criminals are impersonating the companies and attempting to trick consumers into revealing sensitive personal account information.

Here are a few things you should know:

  • Protect your information. Share sensitive information only with sources you trust. Review this information on protecting your identity. Remember, Capital One will never contact you to request your password.
  • Reference the SBA's guidance on potential fraud related to CARES Act relief funds.
  • This article provides specific tips on how to avoid business fraud during the pandemic.

Loan Processing and Servicing

  • To make the loan forgiveness application process easier, keep detailed records on how you are spending your Paycheck Protection Program funds. 
  • Please note, the SBA has documentation retention requirements that vary depending on the PPP loan forgiveness application you used. Please check the SBA website to review the retention requirements detailed in the application you used. 
  • You are required to permit authorized SBA representatives, including representatives of its Office of Inspector General, to access such documentation upon request. In addition, you must provide documentation independently to a lender to satisfy relevant federal, state, local or other statutory or regulatory requirements or in connection with an SBA loan review or audit.

If your PPP loan is fully forgiven, you will not owe payments after your loan balance is $0. 

Please be aware, you must begin making principal and interest payments if you:

  • Don’t submit a complete PPP loan forgiveness application to Capital One before your first payment due date
  • If you have withdrawn your application and don’t reapply before your first payment due date.
  • If you have an outstanding balance after going through the loan forgiveness process

While you can still apply for forgiveness until your loan’s maturity date, you must begin making principal and interest payments if you don’t submit a complete application before the end of your payment deferment period.

If you apply for and receive forgiveness, we will return any overpayments. 

If your loan is not fully forgiven, you will pay principal and interest monthly payments based on the remaining balance and the remaining term of the loan. You’ll receive loan statements—which will include payment details and other important information—in the mail. 

All PPP loans through all lenders have an interest rate of 1 percent based on guidance issued from the SBA and Treasury. Interest accrual begins as of the date of loan funds disbursement, or the day your loan funding hits your account. 

If you apply for forgiveness and your loan is fully forgiven, the SBA will pay any principal and interest accrued. If your loan is partially forgiven, the amount of principal and interest you owe will be reduced based on the amount forgiven.

Per SBA guidelines, borrowers that have paid off their loan in full ahead of applying for loan forgiveness will be able to reinstate their loans and apply for forgiveness.

LOAN FORGIVENESS 101: THE BASICS

Yes, but you must apply for forgiveness and demonstrate that you meet the requirements set by the SBA. All loan forgiveness applications are subject to review by the SBA. We recommend you regularly check the SBA website or Treasury website for updates and the latest information on loan forgiveness.

We’re accepting 3508S, 3508EZ and 3508 loan forgiveness applications for First and Second Draw Paycheck Protection Program (PPP) loans. To submit your application, please email pppforgivenessoffice@captialone.com who will respond within two business days to provide next steps

The streamlined loan forgiveness application (3508S) is available for borrowers who received a PPP loan of $150,000 or less, while 3508EZ and 3508 are available for loans of all sizes. Per SBA guidance, borrowers with a Second Draw PPP Loan in excess of $150,000 must submit a loan forgiveness application for their First Draw PPP Loan before or simultaneously with the loan forgiveness application for their Second Draw PPP Loan, even if the calculated amount of forgiveness on their First Draw PPP Loan is zero. Please visit the SBA PPP loan forgiveness website to familiarize yourself with these forms and instructions.

Once Capital One has received all of the required information and documents, we have 60 days to review your application and submit our forgiveness decision to the Small Business Administration (SBA). Upon receipt of our decision, the SBA has 90 days to complete its review.

Please note: in some cases, the SBA may take longer than 90 days to complete its review. As we receive updates from the SBA on application status, we will make every effort to keep borrowers informed.

In the meantime, we strongly recommend that you begin preparing now by carefully reviewing the SBA’s application and instructions for:

In particular, please closely review the instructions for the information you must provide in order to apply for forgiveness and the certifications that the SBA requires you to make in the loan forgiveness application.

The SBA has several loan forgiveness application options: Form 3508S, Form 3508EZ and Form 3508. The Coronavirus Response and Relief Act introduced a simplified loan forgiveness application (3508S) for borrowers that received a Paycheck Protection Program (PPP) loan of $150,000 or less.

We’re accepting 3508S, 3508EZ and 3508 loan forgiveness applications for First and Second Draw Paycheck Protection Program (PPP) loans. To submit your application, please email pppforgivenessoffice@captialone.com who will respond within two business days to provide next steps

Per the SBA’s website, a borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers must begin making loan payments to their PPP lender.

Please consult SBA’s website or Treasury website for additional information.  Note that the requirements may change based on additional SBA guidance.

LOAN FORGIVENESS APPLICATION PROCESS

To submit your application, please email pppforgivenessoffice@captialone.com who will respond within two business days to provide next steps

Please consult SBA’s website for documents required.  Also, please note that as we review your application we will request any missing documentation.

You may submit a loan forgiveness application before the maturity date of the loan if you have used all of the loan proceeds for which you're requesting forgiveness. 

If you do not submit a complete loan forgiveness application before your loan’s deferment end date or if you withdraw and do not reapply before that same date, you must begin making principal and interest payments. 

While you can still apply for forgiveness until your loan’s maturity date, you’ll begin to receive loan statements—which will include upcoming payment details and other important information—in the mail.

While we will provide updates via email throughout the process.

Last Updated 11/2/2023

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