SBA Paycheck Protection Program (PPP)
Since accepting applications for the Paycheck Protection Program beginning on April 4, 2020, Bank of the West has received a significant volume of applications. As we work on processing those applications from our business customers, we have paused acceptance of new PPP loan applications. We will review all the applications we’ve received and we will contact applicants by email soon on the status of their request.
Start Planning for PPP Loan Forgiveness
If your small business has been approved for a PPP loan, we encourage you to plan ahead to ensure you’ll be eligible for loan forgiveness through the SBA. See our latest updates about preparing for PPP loan forgiveness.
If you applied for a PPP loan with Bank of the West, here are some FAQs, and also some difficult questions that you may be asking:
We have so many applications that are already in queue, and we already anticipate that there's not going to be enough funding to fulfill all of those. It’s a mathematical certainty that the money is going to run out before we reach the end of the existing queue.
We've used a first-in, first-out methodology since we first started submitting applications to the SBA. So, no, we have not prioritized large customers. A couple of facts: Only 6% of our total loans that we funded through this program to date have been $1 million dollars and above. The vast majority -- 94% -- are average low six-figure loans which are very much in line with the current SBA average.
I submitted a PPP application on April 4, but I’ve heard of others who submitted after me getting approved. How is that possible?
If a customer’s application had some data inconsistencies or some data missing, we had to take it out of the queue and address those data issues. And while we were doing that, it is possible that someone who applied later got through the system. But it’s important to note that after we addressed those data inconsistencies we put the application back in the queue in the order that it was first received so it is still first-in, first-out.
If you've already been approved by the SBA and you've received what's called an SBA E-Tran number from us, expect funding within 10 calendar days plus or minus a couple days.
We wish we could have processed everybody, but by starting with existing customers it allowed us to validate customer information based on existing records and prevent things like fraud, which we are required to do under federal law. Given that our objective was to be able to help as many businesses as possible, we started with the applications where we already had customer information readily available, allowing us to validate information fast and get it into the system.
It’s not a perfect solution but customers can apply for the Economic Injury Disaster Loan (EIDL) program directly through the SBA, and it looks like, in terms of how the legislation is written right now, that that it will be re-upped with $50 billion of funding for the EIDL program, so that is an option in case you don't get funded by the PPP.
Looking at the SBA PPP, there were three things that came together: First and foremost, there was unprecedented demand – 14 years worth of applications showing up in 14 days in the first round of funding. Second, was the need to stand up a completely new process for a totally different type of loan in a very short period of time. And the third was a need to do this and maintain social distancing protocols.
What you should know about Bank of the West’s effort is that the person we have in charge of this is a graduate of West Point, he's done multiple tours of duty in Afghanistan, and he is the embodiment of energy and organization. He has done an incredible job of recruiting people from across the company to help him and organize this all into a system that is being managed very diligently and tirelessly until we get this job done.
Please know that everyone at Bank of the West is doing all we can to help businesses through these difficult times.
If you applied for a PPP loan on our website and received a 32-character alpha numeric application number on the confirmation page, please rest assured that we have your application and it is in our queue for processing. Your application number is your acknowledgement that your application was submitted successfully. No further action is needed on your part at this time. Please be patient and we will contact you soon via email at the email address you provided in your application.
Given the nature of this federal loan application process, our Contact Center representatives will not be able to provide information on the status of your application. We will send a confirmation email after you submit your application and will rely on emails to communicate about your progress throughout the loan process. Emails will be sent to the address provided on your application.
If you have already submitted your application and have not received a response, please check your spam/junk folder. Please be aware that updates may take longer than expected due to a high volume of applicants.
Small and medium-sized businesses with 500 or fewer employees, including sole proprietors, self-employed individuals and independent contractors. Tribal business concerns meeting the SBA’s published guidelines, as well as 501(c)(3) non-profits and 501(c)(19) veteran’s organizations also qualify. Businesses with more than 500 employees are also eligible in certain industries, including hotel and food service (more information).
This PPP is only open to current Bank of the West customers with a business checking account active on or before February 15, 2020
How much can I borrow?
Business loans can be up to two months of your average monthly payroll costs from the last year, plus an additional 25% of that amount, not to exceed $10 million. Loans will have a fixed 1.0% rate for all businesses, with no payments for the first 6 months and a 2-year term.
The maximum loan amount is established using the following calculations:
Step 1: Total payroll costs as defined below from February 15, 2019 to February 15, 2020 for employees whose principal place of residence is the United States;
Step 2: Subtract any compensation paid to any employee in excess of an annual salary of $100,000;
Step 3: Calculate the average monthly payroll costs (divide the amount from Step 2 by 12);
Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5
Payroll Costs Include:
A. Compensation to employees located in the U.S. in the form of salary, wages, commissions or similar compensation
B. Cash tips or the equivalent based on your records or best estimate
C. Payment for vacation, parental, family, medical, or sick leave
D. Allowance for separation or dismissal
E. Payment for the provision of employee benefits consisting of group
We understand that your business may need immediate financial help. One alternative you may consider is applying for an SBA Economic Injury Disaster Loan (EIDL). You can apply directly on the SBA's website for up to $2 million in EIDL financing. Additionally, as part of the CARES Act, the SBA is providing up to $10,000 in advance funding if you are approved for an EIDL loan. Please note that Bank of the West does not administer these loans – you must apply directly with the SBA.
Main Street Lending Program (MSLP)
In April 2020, the Federal Reserve announced $2.3 trillion in loans to support the economy, including $600 billion for the Main Street Lending Program (MSLP). MSLP offers 5-year loans to companies employing up to 15,000 workers or with revenues of $5 billion or less. You can review full program details on the Federal Reserve Bank of Boston website (www.bostonfed.org).
Bank of the West is now accepting MSLP financing applications from clients with an existing extension of credit with Bank of the West. MSLP financing is subject to due diligence and credit approval. If your company is interested in requesting MSLP financing or learning more about this important program, please contact your Relationship Manager or your Branch Representative.
Corporate and commercial banking customers
We are prepared to offer financial solutions and continue to provide uninterrupted service and support to our corporate and commercial clients as we understand that you may experience disruption to your business at this time.
Our Relationship Managers are connecting with customers and discussing solutions on a case by case basis. Please reach out to your Relationship Manager if you have any questions or need assistance.
Temporary branch banking changes
Make an Appointment
Branches with a drive-up window
The branch lobby will be open with controlled branch access, and the drive-up window will remain open to serve you.
Branches with no drive-up window
The branch lobby will remain open, though we will be limiting the number of customers in the branch at a time.
We are safe, stable and secure
- Bank of the West is a member of the FDIC, so your deposits will remain secure with us3.
- With a Tier-1 Risk-Based Capital Ratio above 12% (more than 2 times the regulatory minimum), you can trust that we'll remain in a strong position to meet your credit and liquidity needs4.
- We are a wholly owned subsidiary of BNP Paribas. That means Bank of the West, along with our customers, has the full support of the 7th largest financial institution in the world.
- Finally, with our diverse sources of funding and ample access to contingent liquidity, our customers can count on us to have their liquidity needs met 4.
A message from our CEO
Please take a moment to read a letter from CEO Nandita Bakhshi
Our Chief Economist, Scott Anderson, analyzes international, national, and regional economic trends. Click here to read his latest post about the global economic impact of the COVID-19 pandemic.
Helping you navigate the financial market headlines.
Our investment teams are keeping a close eye on the markets and sharing their views on our Market Commentary page.
We are in this together
We recognize that banking is an essential part of everyday life. We will continue to evolve our response rapidly with expertise from public health authorities, with your health and well-being in mind, as a top priority for us. Please check back for updates, and visit the CDC website or call your local health department for the most up-to-date information on COVID-19.
Legal information and Disclosures
1 All loans are subject to certain eligibility requirements and SBA approval. Applicant is responsible for the accuracy and completeness of all information. The application must be completed in full and signed, and be accompanied by the submission of all required documents, before Bank of the West will submit it to the SBA. A loan is not approved until the SBA has issued its confirmation. Bank of the West is not responsible for errors or omissions by Applicant in completing the application. Bank does not have control over the time or order in which SBA will review loan applications. Bank is not responsible for delays in processing resulting from high volumes of applications or the submission of applications that do not include required documentation. Please redact or do not include personal identifiers, such as names and social security numbers or tax identification numbers of employees, if you send information by email.