Program Update For April 23rd, 2020

As we continue to work diligently to provide PPP loans for as many businesses as possible, and anticipating a new round of funding soon to be approved by Congress, we are working through the loans currently in the application process with CenterState Bank. All new PPP applications will be handled through our partnership with Kabbage until further notice.

Should you have questions, please contact your CenterState Relationship Manager or email us at [email protected]

Customer Testimonials

The Success of Our Clients Tells Our Story

"During these uncertain times of COVID-19, Center State Bank along with the staff was there to every step of the way to reassure our small business will continue to thrive in upcoming months by providing information and assisting us during the SBA loan process. We would like to thank Matt, in particular, for his stellar service, attention to detail, and professionalism."

Kristine Eckardt

Small Business Banking Client


"I appreciate all of the help and attention that you and your team provided to me earlier this week. The loan will go a long way in providing our staff with financial stability during the next 8 weeks. Hopefully, we will be up to a normal volume of business by that time. Thank you from the physicians and staff of Vitreous and Retina Consultants, PA."

Dr. David Misch
Center for Retina and Macular Disease

Small Business Banking Client


Paycheck Protection Program (PPP) Details

Starting April 3rd and going to June 30, 2020, the US Treasury looks to support American workers and businesses who are impacted by the coronavirus. As a lender under this program, CenterState Bank will facilitate PPP loans for its existing customers. The details of PPP can be found below.

General Terms

Start: Small businesses and sole proprietorships can apply April 3, 2020. Independent contractors and self-employed individuals can apply on April 10, 2020.

Term: 2 years maximum with the ability to have all or some of the loan forgiven sooner

Rate: 1.00%

Fees: No fees will be charged to the borrower.

Deferral Period: All payments on the loan are deferred for six months.

Loan Amount: PPP loans will be sized at two months of a businesses average Eligible Payroll Expense (see below) plus an additional 25% of that amount up to $10 million.

Use of Proceeds: Proceeds under PPP loans can be used for payroll costs and benefit expenses plus interest on mortgage applications, rent and utilities as long as these obligations were in force prior to February 15th, 2020.

Early payoffs: Allowed without penalty

Required collateral or guarantees: None

--Note that Eligible payroll costs are capped at $100,000 on an annualized basis for each employee.


Your business is eligible if you were operating prior to February 15, 2020, you had employees for whom there was paid salaries/payroll tax/contractors, and you meet any one of the following criteria:

  • A small business with fewer than 500 employees (includes part-time employees as well)
  • A small business that otherwise meets the SBA’s size standard
  • A 501(c)(3) with fewer than 500 employees
  • An individual who operates as a sole proprietor
  • An individual who operates as an independent contractor
  • An individual who is self-employed who regularly carries on any trade or business
  • A Tribal business concern that meets the SBA size standard
  • A 501(c)(19) Veterans Organization that meets the SBA size standard
Female Shipping Merchandise

Rule modifications:

  • If you are in the hospitality or food services sector (primary business is NAICS code of 72), the 500-employee rule is applied on a per physical location basis.
  • If you are operating as a franchise or receive financial assistance from an approved Small Business Investment Company the normal affiliation rules do not apply.
  • Priority for processing will be given to businesses in under-served and rural markets, veterans owned businesses, economically disadvantage owners and businesses that are less than two years old.

What is required and not required:

While we may want additional information, at a minimum, we will be looking for you to sign a “good faith certificate” stating that:

  • The impact of the COVID-19 pandemic makes the loan request necessary to support ongoing operations.
  • You will use the loan proceeds to retain workers and maintain payroll or make mortgage, lease, and utility payments.
  • You do not have an application pending for a similar loan with another institution.
  • From Feb. 15, 2020 to Dec. 31, 2020, you have not received a loan duplicative of the purpose and amounts applied with us (Note: There may be an opportunity to fold the SBA’s Emergency Injury Disaster Loan Emergency Grant made between Jan. 31, 2020 and the date this loan program becomes available into a new loan).
  • If you are an independent contractor, sole proprietor, or self-employed individual, we will also be looking for certain documents (final requirements will be announced by the government) such as payroll tax filings, Forms 1099-MISC, and statement of income/expenses.
Introspective Male Shop Owner

Documents Needed:

While documentation details are still being finalized, if you believe you qualify for relief under the CARES Act Payroll Protection Program, gathering the following documentation will be helpful for determining the size of your loan and may be required when the application becomes available:

  • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
  • 2020 (first quarter) 940, 941 or 944 payroll tax reports
  • Payroll summary reports for a twelve-month period (ending on your most recent payroll date) plus first quarter of 2020, which will show the following information:
      • Gross wages for each employee, including officer(s) if paid W-2 wages, which includes PTO, vacation, paid sick leave
      • State and local taxes assessed on an employee’s compensation
  • Documentation of payments required for the provisions of group health care benefits, including insurance premiums
  • Documentation of payments of all retirement plan benefits that were paid by the company (excluding employee deferral withholding)
  • Any forms 1099-MISC for independent contractors for 2019
  • The period of coverage as set by the PPP is 2/15/20 – 6/30/20

Loan Amount:

The loan size under the Paycheck Protection Program is determined by analyzing 2.50x your Eligible Payroll Costs which is determined by your average monthly cost during the year prior to the loan date up to $10 million. Eligible Payroll Costs equals your Permitted Payroll Costs less Excluded Payroll Costs. All or a portion of the PPP loan can be forgiven based on the Payroll Cost Formula. The Formula is calculated by taking the average number of full-time equivalents (FTEs) per month for the 8-weeks after the loan proceeds are dispersed divided by either: 1)the average number of FTEs per month from February 15, 2019, to June 30, 2019; or, 2) the average number of FTEs per month from January 1, 2020, to February 29, 2020 (for new companies). Seasonal companies have the option of using the average number of FTEs per month from February 15, 2019, to June 30, 2019.

Loan Amount Formula

How To Determine My Loan Amount

Payroll Cost Formula

Reduction Based On Reduction In Salaries

(1) Note that personal guarantees or collateral is NOT required for PPP loans.

Permitted Payroll Costs:

For employers, Permitted Payroll costs will include any compensation with respect to an employee that is:

  • salary, wage, commission, or similar compensation;
  • payment of cash tip or equivalent;
  • payment for vacation, parental, family, medical, or sick leave;
  • allowance for dismissal or separation;
  • payment required for the provisions of group health care benefits, including insurance premiums;
  • payment of any retirement benefit; and;
  • payment of state or local tax assessed on the compensation of the employee.

If you are a sole proprietor, independent contractors or self-employed individual, then take the wage, commission, income, net earnings from self-employment, or similar compensation that is not more than $100,000 in one year as pro-rated for your designated covered period.

Female Shop Owner looking At Bills

Excluded Payroll Costs:

Subtracted from the Permitted Payroll Costs are the Excluded Payroll Costs which are defined as:

  • Compensation of an individual employee in excess of an annual salary of $100,000, as pro-rated for the period February 15, to June 30, 2020.
  • Payroll taxes, railroad retirement taxes, and income taxes
  • Any compensation of an employee whose principal place of residence is outside of the United States.
  • Qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act (Public Law 116–5 127); or qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act.
warehouse worker carrying a box

Loan Forgiveness:

You are eligible to have a portion of your loan forgiven, up to the total loan amount, for the amount that you spend during the eight-week period beginning on the date the loan was originated to include the following costs:

  • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
  • Interest on the mortgage obligation incurred in the ordinary course of business
  • Rent on a leasing agreement
  • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
  • For borrowers with tipped employees, additional wages paid to those employees

It is important to note that your loan forgiveness could be reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to those employees.

Small Business Book

Frequently Asked Questions

You will be able to apply as soon as the SBA makes the program operational. CenterState is a qualified SBA lender so CenterState customers will be able to apply directly on this site. SBA application fees will be waived for borrowers. This will be a streamlined approach which will result in getting capital in the hands of businesses as soon as possible. If you have immediate questions, and don’t find your answers here, or want to further discuss your options, please reach out to your relationship manager or our SBA Department by emailing one of our SBA Bankers.
The PPP is a streamlined process created by the CARES Act to rush capital to the small businesses of America. One of this program’s important features, that is different than all other programs in the past, is that you can apply for loan forgiveness after receiving the funds. Another unique feature is that borrowers will not have to pay on the loan for the first 6 to 12 months.
Under PPP, there is no collateral required.
Once the SBA and Treasury releases the details and guidance on the PPP, CenterState can approve your loan and disperse funds as fast as possible into your CenterState Bank account. Alternatively, funds can be sent via electronic (ACH) payment.
Funds from PPP loans can be used for the following:
  • Employee salaries (including commissions and tips)
  • Vacation, paid leave (family, medical, etc.)
  • Health insurance premiums and retirement benefits
  • Rent and utilities
  • Interest payments on mortgages or debt incurred before 2/15/20 (note, not principal payments)
  • State or local tax assessed on compensation
The interest rate for Paycheck Protection Program loans is set for everyone at 1.00% fixed.
Yes. Customers can use PPP proceeds to keep their CenterState Bank interest current. However, keep in mind any amount applied to non-mortgage debt or principal payments will not qualify for loan forgiveness.
It is unclear at this point so be sure to double-check, but we estimate that taking a PPP loan will not impact your borrowing capacity within various SBA programs. We will await further guidance from the SBA and Treasury.
Up to 100% of the principal amount of the loan may be forgiven if your business uses the proceeds on qualifying expenses. The forgiveness program is designed to support employment – if your firm does not maintain certain levels of employees or compensation, then part of the loan will not be forgiven. We await further clarification about the details of loan forgiveness.
Any loan principal not forgiven will carry an interest rate of 1% fixed for a 2-year standard maturity. Please keep in mind that payments are not due until after the six month deferment period in which interest will accrue.
At this point, it is unclear, but we have indications that the intent is to allow your business to apply for both IF you can certify that proceeds from the EIDL program was used for purposes other than what the PPP was intended for.
Yes. Borrowers that re-hire their workforce and maintain their salary or wages upon re-hire by the end of the covered period, would qualify for loan forgiveness with proper documentation.
While this is still evolving, at present, businesses will need payroll tax filings; state income, payroll and unemployment insurance filings.
(*) As of 3/31/20 these answers are our best estimation and are not final. Please check back frequently here for updates as we plan to remove the asterisk when we have confirmation.

*FAQs subject to revision as more guidance becomes available.

Have Additional Questions?

Should you need further assistance, please contact your CenterState Relationship Manager or email us at [email protected].

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