CARES ACT – Paycheck Protection Program

UPDATE – May 22, 2020

On Friday, May 15, the SBA and U.S. Treasury released the Paycheck Protection Loan Forgiveness Application. On Friday, May 22, the SBA and U.S. Treasury released additional guidance on the Paycheck Protection Program (PPP) Loan forgiveness application process. For borrowers, this latest guidance provides key information about loan forgiveness, including further clarification on which payroll costs and which nonpayroll costs incurred or paid during the covered period may be eligible for forgiveness. Learn more about forgiveness here.

While we are not currently accepting new paycheck protection loan submissions, we do continue to process those that were previously submitted, and we're beginning to prepare for the intake of forgiveness requests. We expect to launch our digital, loan forgiveness application process beginning in mid-June. We know how critical the funding from this program has been to our customers as you face the impact of COVID-19, and we’re thankful we’ve had the opportunity to participate and continue to support you through this process. If there is anything we can do apart from the SBA Paycheck Protection Program to assist with your financial needs, please contact your relationship manager or local branch.

Learn about Paycheck Protection Loan Forgiveness

Following the approval of your SBA Paycheck Protection Program (PPP) loan, you may have questions about the forgiveness requirements. Learn more

CARES ACT – Paycheck Protection Program

President Trump has signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Act provides approximately $2.2 trillion of fiscal stimulus including a $350 billion bank loan program for businesses, commonly called the “Paycheck Protection Program.” We’re thankful for the opportunity to participate in this program and to help offer relief to our business customers.

What assistance does the program provide?

The Paycheck Protection Program will be administered by the Small Business Administration (SBA) under its Section 7(a) lending program. The intent of the program is to provide loans on favorable terms to those businesses impacted by the challenging economic environment. The evening of April 2, 2020, the SBA issued guidance on the Paycheck Protection loan program. According to the SBA, additional guidance on some components of the program are still forthcoming.

  • Businesses including non-profits, veteran’s organizations that were in business as of February 15, 2020 will be eligible to apply.
    • Your business must have 500 employees or less (can be greater than 500 for business with NAICS code 72 - Accommodation and Food Services industry).
    • This includes sole proprietorships and independent contractors.
  • The loan is to cover certain operating expenses for the period of February 15, 2020 to June 30, 2020.
    • Payroll costs
    • Healthcare costs
    • Mortgage interest
    • Rent
    • Utility payments
    • Interest on other debt incurred prior to February 15, 2020.
  • The maximum loan amount is 2.5 times your average monthly payroll costs for the prior year up to $10 million.
  • The government guaranty for this loan will be 100%.
  • Loan recipients will be eligible for loan forgiveness on a portion of the loan. Loan forgiveness will be reduced if there is a reduction in the number of employees or employee compensation during this period.
  • The term of the loan will be two years with a fixed interest rate of 1% and with the first 6 months payments being deferred. Interest will accrue during the deferral period. There will be no prepayment penalty.
  • SBA guaranty fee is waived.
  • No collateral or personal guarantee will be required.

Additional information on our response to COVID-19 can be found here.


Important disclosure information

Synovus will process your application for loan forgiveness as the originating lender following further guidance that we expect from the SBA. We are waiting for the SBA and Treasury to release final, detailed guidance on loan forgiveness. The SBA, and not Synovus, will set the eligibility parameters for forgiveness. 

Applications to participate in the SBA Paycheck Protection Program must meet eligibility requirements and are subject to confirmation and review of payroll and financial information as well as SBA approval.

By submitting an application, you certify the applicant has been negatively impacted by COVID-19, is not ineligible for the Paycheck Protection Program and will use the proceeds from this loan for eligible purposes under the Paycheck Protection Program. You further certify that the applicant does not have an active application with another institution and has not received a loan from any other institution under the Paycheck Protection Program. You understand that Synovus will not pay fees to or otherwise compensate anyone acting as an agent of the applicant for advising on or assisting in the preparation of the Paycheck Protection Program application or otherwise. You also certify that you are a duly authorized representative of the applicant and authorized to sign all documents on behalf of the applicant in connection with the Paycheck Protection Program. All information provided in this form is true, accurate and correct and you're fully aware of the penalties for submitting false information.

Additional Resources

SBA Disaster Loan Comparison