COVID-19 Update

COVID-19 update from Citizens Bank of Kansas

February 22, 2021 Exclusive PPP Loan window for small businesses

President Biden has announced plans to improve access to PPP 2.0 loans for small businesses.  Beginning February 24, 2021, businesses with less than 20 employees have AN EXCLUSIVE PERIOD in which to apply for Paycheck Protection Program loans.  A revised loan calculation and set-aside funding is provided in addition to the exclusive window from February 24th to March 10th .  This change is approved after five weeks of the reopening of PPP with nearly half of the $150 billion in funding still available.   The revised applications are included here for your convenience.  Please contact our PPP experts at [email protected] if you have questions.

PPP Borrower Application Form
PPP Second Draw Borrower Application Form

January 20, 2021 Forms for PPP Loan Forgiveness

Note to our potential PPP Borrowers:  the SBA has updated the forms to apply for forgiveness

3508S - Loan amount of $150,000 or less.
3508EZ - Self-employed, no employees, or did not satisfy 25% wage reduction.
3508 - All other PPP borrowers.

As always, please contact our PPP team at [email protected] for assistance.

January 11, 2021 Update on PPP loans

The Treasury Department and Small Business Administration (SBA) have announced that they will reopen the Paycheck Protection Program (PPP) on Monday January 11, 2021, with second draw PPP loan applications beginning January 13, 2021.  That’s the good news.  Unfortunately, SBA has yet to open the necessary portals for lenders to submit applications.  And so we wait. 

A bit more background information:  the new round of PPP authorizes $284 billion in funding toward job retention and business expenses.  This round of applications must be submitted by March 31, 2021.  The appropriation also permits borrowers who participated in the first round of PPP loans to apply again in a second round, with a few restrictions.  More changes for PPP 2.0:

  • PPP loans are available in this second round to those who did not participate in the program in the first round as well as those who did participate;
  • PPP 2.0 borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
  • PPP 2.0 loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • The PPP 2.0 Program’s eligibility is expanded to include 501(c)(6) and housing cooperatives, among other types of organizations;
  • The PPP 2.0 provides greater flexibility for seasonal employees;
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; and
  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP 2.0 Loan.  Eligibility for the second draw includes:
    • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
    • Borrower used or will use the full amount of their first PPP loan before funds disbursed from PPP 2.0;
    • Has no more than 300 employees; and
    • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Please note there are separate applications for first round and second round loans.  You will see below the fillable applications; the second draw application is clearly marked. 

What should you do now?

  1. Determine your eligibility for the PPP 2.0 loan.  A conversation with your accountant is a good place to start.
  2. Complete the appropriate application below.
  3. Gather necessary documents to support the application:
    1. If your first PPP loan was with CBK and the second request is below $150,000, we have most of what we need already.
    2. For second round requests over $150,000, provide a quarterly income statement to document the 25% reduction in gross receipts in 2020, as well as the income statement for the same period in 2019.
  4. Submit the competed application and document to [email protected].

As always, we encourage you to reach out to your lender or our PPP team ([email protected]) for more information and assistance.

PPP Borrower Application Form
PPP Second Draw Borrower Application Form

December 28, 2020 Updated information regarding new PPP loans

The Paycheck Protect Program (PPP) has new life with the Consolidated Appropriations Act 2021 passed by Congress and approved by the president.  Here are some highlights of PPP 2.0.

  • Businesses who previously received PPP funds are eligible for a “second draw” if they have 300 employees or fewer and a loss of revenue of 25%.  Maximum loan amount generally is $2 million.
  • Creates simplified forgiveness application for loans of $150,000 or less.  The SBA must provide the new form within 24 days of enactment of the legislation.
  • Borrowers are now allowed to deduct certain business expenses paid with PPP funds.  This reverses a position taken earlier by the IRS.  ** Make sure your tax preparer is aware of this update. **
  • Categories of forgivable expenses under PPP 2.0 now include operating costs such as HR, software, and accounting.  Borrowers must use at least 60% of the PPP loan proceeds for payroll costs to be eligible for forgiveness.

As we receive information from the SBA for processing these new loans, we will keep you posted on our website. 

We encourage you to process your forgiveness application from the first round of PPP loans.  Forms are available below.  As always, you can contact us at [email protected] for more information.

December 21, 2020 Covid-19 and PPP Forgiveness

As the end of the year approaches, please consider submitting your application for PPP loan forgiveness.  We know that some have waited to apply for 2020 tax purposes.  Please put the forgiveness application on your new year’s resolution list.

There are three PPP loan forgiveness options:

  • SBA 3508S Application: for PPP loans in the amount of $50,000 or less. This simplified form requires fewer calculations. Borrowers eligible for the 3508S will not be subject to any penalties for reduction of full-time equivalent employees or reduction of employee salary and wages.
  • SBA 3508EZ Application: for self-employed and have no employees; or did not reduce salaries or wages by 25%.
  • SBA 3508 Application: all other PPP borrowers not eligible to file 3508EZ or 3508S.

We encourage you to familiarize yourself with all three versions to determine which is appropriate for your situation.

Please note: documentation verifying forgivable payroll and non-payroll expenses is required and the SBA has reserved the right to request additional documentation to verify the calculations. All forgiveness applications require the borrower to retain documentation utilized to complete the forgiveness application for six years. 

 We understand there may be another round of PPP loans available with the stimulus package now being considered in Congress.  We’ll keep a watchful eye and let you know here when there is definitive resolution.

Note:  when you’re ready to submit your forgiveness application and supporting documentation, or have questions about the process, please email us at [email protected].  

November 13, 2020 Citizens Bank of Kansas Announces Lobby Closures Due to Covid-19

Due to the outbreak of Covid-19 at various CBK locations, Citizens Bank of Kansas will close lobby access at all of its locations beginning Monday, November 16, 2020, until further notice. 

“This is a difficult decision for us as we strive to provide stellar customer service to our customers,” said Jane Deterding, Chairman of Citizens Bank of Kansas.  “But our overriding concern is the safety of our staff and customers.   We will continue to operate drive thru service at all locations with regular hours,” she said.   CBK will provide lobby access by appointment only.  “We apologize for this inconvenience and appreciate your understanding,” Deterding said.

Citizens Bank of Kansas takes pride in being the family-owned neighborhood bank for its customers for four generations. CBK has banking facilities throughout south central Kansas and has a strong tradition of community service. Learn more at www.citizensbankofkansas.com.  

November 1, 2020 Landlord Borrowers:

We recognize that maintaining your property rental income has been difficult during this pandemic.  That is why we are pleased to pass on this information about a Kansas program, with federal funding, designed to keep your tenants in your property while collecting rents. 

The Kansas Eviction Prevention Program (KEPP) is funded through the Federal CARES Act, as administered by the Kansas Housing Resources Corporation (KHRC).  The goal of the KEPP is to protect tenants from eviction due to the Covid-19 pandemic and ensuring rent collection for landlords.  

Landlords and tenants apply together online (see below for application links).  As the tenants are approved, the funds will be paid directly to the landlord to be credited to the tenant account, including late fees during the period.  Tenants are eligible for an amount up to $5,000 covering a maximum of nine months beginning April 1, 2020. 

Qualified program applicants must meet all of the following criteria:

  • Tenant(s) have missed at least one rental payment since April 1, 2020.
  • Tenant and all members of their household, if applicable, are Kansas resident(s) legally authorized to be in the United States.
  • Tenant seeks rental assistance for their primary residence.
  • Neither tenant nor landlord has received monthly rental assistance from other sources for the months for which they are requesting KEPP assistance.
  • Tenant(s) can demonstrate that the COVID pandemic has had an adverse impact on their employment or income beginning January 20, 2020 or later. Adverse effects may include layoff due to mandated shutdowns and/or business closure, job loss, reduction of hours, or inability to work due to COVID-related illness or lack of childcare.
  • Tenant’s household income is at or below 85 percent of the state median income, or $63,920 for a household of four. If tenant qualifies for TANF, SNAP, or LIEAP assistance, they automatically meet the program’s income requirements.

For more details on the KEPP program, follow this link:  https://kshousingcorp.org/eviction-prevention-program/

To go directly to the one-page tenant application, click here:  https://kansasepp.formstack.com/workflows/kepp_tenant_application

The landlord certification starts here:  https://kansasepp.formstack.com/workflows/kepp_landlord_certification

NOTE:  Applications must be submitted prior to December 30, 2020; however, funding may expire prior to that date.  (*As of this time, we are unable to determine the total funds available for this program – prompt action is recommended.)

For help completing the applications, email [email protected]. 

October 13, 2020 PPP Loan Update:

The SBA and Treasury Department announced on Thursday, October 8, 2020, a more streamlined forgiveness process for PPP loans of $50,000 or less.  The application form 3508S and instructions are provided below.

The simplified form 3508S requires fewer calculations and less documentation for eligible PPP borrowers.  The major benefit to borrowers eligible for the 3508S forgiveness path will not be subject to any penalties for reduction of full-time equivalent employees or reduction of employee salary and wages. Essentially, this means that as long as you’re a borrower who received $50,000 or less in PPP funds, and you used those funds on qualifying payroll and non-payroll costs, your full loan will be automatically forgiven.

The new form does not require borrowers to show calculations to determine the loan forgiveness amount; however, documentation verifying forgivable payroll and non-payroll expenses is required and the SBA has reserved the right to request additional documentation to verify the calculations. As with the other forgiveness applications, the borrower must retain documentation utilized to complete the forgiveness application for six years. 

This much-needed relief for small PPP borrowers has taken a long time to get to the finish line. Frankly we have had concerns that it would not happen at all!   As always, if you have questions please contact your loan officer or email [email protected].

Loan Forgiveness Application Form
Loan Forgiveness Application Form Instructions

Note:  when you’re ready to submit your forgiveness application and supporting documentation, please email to [email protected].  

September 21, 2020 PPP Loan Update:

Many PPP loans with CBK are approaching the six-month mark, which was the original first payment due date established in the CARES Act.  Since that time, Congress enacted the PPPFA (Payroll Protection Program Flexibility Act) which provides additional relief and extends the first payment due date for existing PPP loans.   Here are some important highlights for you:

  • The PPPFA makes it easier for borrowers to spend PPP loan proceeds and qualify for loan forgiveness by extending the "covered period" during which PPP loan proceeds must be spent to 24 weeks from the date of origination of the PPP loan or until December 31, 2020, whichever is earlier.
  • The PPPFA also makes it easier for borrowers to qualify for loan forgiveness by reducing the percentage of the PPP loan proceeds that must be spent on payroll costs from 75 to 60 percent.
  • The PPPFA extends the deadline for rehiring and restoring wages and salaries from June 30, 2020, to December 31, 2020.
  • The PPPFA gives borrowers up to 10 months AFTER their "covered period" ends (e.g., 10 months after the earlier of 24 weeks after the PPP loan proceeds are received from the lender or December 31, 2020) to apply for loan forgiveness.
  • The PPPFA extends the minimum maturity date on new PPP loans originated on or after June 5, 2020 (the date the PPPFA was enacted) from two to five years.

Please know that CBK will automatically extend the first payment due date on PPP loans to comply with the PPPFA.  You are not required to sign an extension or notify CBK of your desire to extend the first payment due. 

As we await word from Congress for a possible $150,000 forgiveness threshold, we have started working on forgiveness applications for loan amounts above $150,000. 

It would be helpful if you would let us know if you will not be submitting a forgiveness application (for example, you are choosing to take the 1% loan, have determined you will not satisfy certain forgiveness requirements, or your accountant has advised you not to seek the loan forgiveness).  Please email [email protected] if you will not seek forgiveness, or have any other questions about the loan forgiveness process.   Thank you.  

September 1, 2020 PPP Loan Forgiveness Update:

The PPP loan forgiveness process is top-of-mind for many borrowers, and we want to keep you posted as we learn more about the SBA plans.  Here are a few highlights of recent developments: 

  • The SBA released the forgiveness software on August 10th but has already made changes.
  • A bill in Congress designed to set an automatic forgiveness threshold for loans under $150,000 has stalled.  Congress left for recess in mid-August without acting on the bill and won’t return until after Labor Day.  Best case scenario – if an agreement can be reached – is an October 1st vote.  We continue to be in contact with the Kansas Bankers Association and American Bankers Association to push for this much-needed threshold forgiveness.
  • You should contact your accountant to discuss any tax implications associated with the PPP loan forgiveness.  There may be more reasons to wait after having that discussion.
  • If your loan was issued on or before June 5, 2020, you have the flexibility to choose 24-weeks to spend the PPP funds, instead of the original 8-weeks.  The forgiveness period – time in which to spend the PPP funds – automatically extends to December 31, 2020.
  • The SBA issued an Interim Final Rule on August 24, 2020, which addresses forgiveness of lease payments which are paid to a related entity, and certain nonpayroll costs which can be included in the loan forgiveness application.  This will not affect many borrowers.

To give you an idea of what will be required to complete the forgiveness application, please refer to the information below.  In particular, the CBK Checklist will be useful in gathering documents for this process. 

Our advice to you is still to be patient as this system stabilizes.  CBK has tested the system with two forgiveness applications.  We are waiting for feedback from the SBA.

If you have any questions, please feel free to contact our PPP team at [email protected].  We’ll stay in touch as we learn more.  Thank you.  

August 24, 2020 COVID-19 Update:

Due to multiple confirmed cases of Covid19 in multiple CBK branches, our lobbies will be temporarily closed.  We will continue to provide service through out drive-thru facilities.  If you have questions, need to speak with a loan officer, or need access to your safe deposit box, please call your local branch.  We apologize for the inconvenience.


July 24, 2020 COVID-19 Update:

SBA has issued a procedural notice informing Paycheck Protection Program (PPP) Lenders including CBK of the processes for submitting decisions on PPP loan forgiveness. The applications will be reviewed by the SBA and payment of the loan forgiveness amount determined by SBA.

The PPP Forgiveness Platform will go live and begin accepting Lender submissions on August 10, 2020; however, any other action by Congress with respect to the forgiveness process could delay that timeline. 

Note: There appears to be strong bi-partisan support for a streamlined PPP loan forgiveness process for business loans of $150,000 and under. CBK has been in contact with various trade groups regarding this much-need threshold, and we believe it is likely.  Therefore, CBK will start processing forgiveness applications above the threshold first until Congress has determined the terms of the next round of pandemic relief.

As always, please feel free to contact your CBK lender or [email protected] for more information.  

July 2, 2020 COVID-19 Update:

June 15, 2020 SBA Interim Ruling for PPP and Flexibility Act:

PPP Interim Final Rule Updated to Reflect Law Change on PPP Flexibility and a New Application Form for Borrowers. The Small Business Administration (SBA) and Treasury Department released an interim final rule to reflect changes made by H.R. 7010, the Paycheck Protection Program Flexibility Act. SBA also published updated, streamlined application forms for borrowers and lenders to use for new PPP loans made on or after June 5, 2020. Highlights of the Interim Formal Rule include: 

1) changes the payroll portion of the forgiveness calculation from 75% to 60% and confirms that if borrowers use less than 60% towards payroll, they will still be eligible for partial loan forgiveness; 

2) extends the end date of the “covered period” for a PPP loan from June 30 to December 31, 2020; 

3) extends the loan forgiveness period from 8 weeks to 24 weeks (with an option to keep the 8 week forgiveness period for loans made prior to June 5th;

4) loans made prior to June 5th have the option to extend the loan maturity to 5 years – those loans made after June 5th will have a five-year maturity; and

5) clarifies that if a borrower submits its forgiveness application within 10 months of the end of the loan forgiveness period, the borrower will not have to make any payments on the loan before the SBA remits the forgiven amount to the lender.

‌ SBA is expected to issue additional revisions to its interim final rules on loan forgiveness and loan review procedures to address changes H.R. 7010 made to the PPP loan forgiveness requirements, as well as guidance on advance purchases of PPP. --Source:  Kansas Bankers Association

CBK will continue to monitor new rules and guidance from the SBA and keep you advised. 

PPP Application revised June 12, 2020

May 28, 2020 Loan Forgiveness under the PPP:

Many of you have been asking about the loan forgiveness plan under the Paycheck Protection Program.  The application form is now available BUT we urge you to be patient as there are so many changes on the horizon. Congress has introduced a bill entitled The Paycheck Protection Flexibility Act which would, among other things:

  • Extend the “covered period” under which small businesses can spend the loan proceeds from eight weeks to 24 weeks or until Dec. 31, 2020.
  • Remove the limits on loan forgiveness for small businesses that were unable to rehire employees, hire new employees or return to the same level of business activity as before the virus.
  • Strike the 25% cap to use PPP funds on nonpayroll expenses, such as rent, mortgage interest and utilities. Currently, small businesses must use at least 75% of the loan for payroll expenses to get maximum forgiveness.
  • Extend the loan terms for any unforgiven portions that need to be repaid from two years to five years, at 1% interest.
  • Give small businesses more time to rehire employees — until the end of enhanced unemployment benefits that were originally passed in the CARES Act on March 27.  (Source:  Andy Medici, Washington Business Journal) 

We WILL get you the information you need to apply for the forgiveness of the PPP loan.  We’re watching and reading everything we can find on this ever-changing legislation.  Again, we urge you to be patient and wait for more definitive information which is sure to come.   Thank you.

May 5, 2020  Citizens Bank of Kansas Announces Reopening Schedule:

Consistent with the Governor Kelly’s plan to gradually reopen businesses in Kansas during the COVID-19 pandemic, Citizens Bank of Kansas has implemented a plan to gradually reopen all banking operations by May 27, 2020. Highlights of the CBK plan are as follows:

May 4, 2020 - Drive-thru operations continue to serve customers. Several employees return to work at their            branches.

May 18, 2020 - Lobby will be open 9:00 AM to 1:00 PM Monday through Friday; drive-thru operations continue as usual. Additional employees return to work at their branches.

May 27, 2020 - Lobby hours open 9:00 AM to 5:00 PM Monday through Friday. Drive-thru hours open Monday-Friday 8:00 AM through 5:30 PM, Saturday 9:00 AM through 12:00 PM. All employees return to work at their branches.

“Our highest priority in this time is to protect the health of our employees and customers,” said Jane Deterding, Chairman of Citizens Bank of Kansas. “As we gradually reopen our branches, we will take additional measures such as social distancing within the branches, attention to important hygiene practices, and providing face masks and gloves for our employees,” Deterding said.

April 16,2020 Updated Information on SBA Loans & Stimulus Payment:

SBA Loans:  We received the following notification from the SBA today:  “The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.“  In other words, the $349B allocated for the PPP loans has been exhausted in 13 days.  The funds allocated for the Economic Impact Disaster Loans (EIDL) has also been used.  Congress is currently debating whether to add additional funding for these programs; we will monitor closely and keep you advised. 

If you have submitted an application to CBK, we will continue to review that information in anticipation of further funding for the PPP program.  These applications will have first priority if additional funding is allocated. 

Stimulus Payments:  We continue to receive a large volume of calls from our customers asking if their stimulus payment check has been deposited in their account.  We respectfully request that you utilize these options for information:

  • Online banking This tool will give you up-to-date information on your account and any deposits.
  • Telephone banking Another 24/7 tool to check your account balance.
  • IRS Portal This secure website allows you to get details on when you will receive your stimulus check. 

April 3, 2020 PPP Loan Information:

There has been much information in the news about COVID-19 disaster relief loans available under the Congressional legislation known as the CARES Act (the Coronavirus Aid, Relief, and Economic Security Act). The CARES Act is designed to help support businesses and families through the on-going COVID-19 pandemic. Citizens Bank of Kansas is an authorized SBA lender and available to help your business with the relief available. 

The CARES Act expanded the SBA Section 7(a) loan program to create the “Paycheck Protection Program” (PPP), to support small businesses. We are encouraging all our small business borrowers who are impacted by COVID-19 to consider applying for a loan under this new program, which provides some critical benefits, including:

  1. Cash to cover select business expenses (such as employee salaries and payroll support, rent or mortgage and utilities payments, insurance premiums)
  2. 6 months of deferred loan payments
  3. Loan forgiveness (a portion, or possibly all, of your loan may be forgiven)

Key Points to Know:

  • Length of a PPP loan: 2 years
  • Interest rate on a PPP loan: 1.0%
  • Maximum dollar amount of a PPP loan: 2.5x of your average total monthly payroll costs of the business during the 1-year period before the loan is made. (For those in business less than one year, your payroll costs will be based on January and February 2020.) Payroll costs include salary, wage, vacation, parental, family, medical or sick leave, severance, health care benefits, and local taxes.
  • Last day to apply for a PPP loan: June 30, 2020

Required Documentation:

To apply, please fill out the application form and submit to [email protected], with the above documentation.

Here are additional resources on this program:

CBK cares and we are working to process applications as soon as possible.  Further questions?  Please email [email protected]. 

March 25, 2020 UPDATE:

We continue our efforts to assist our customers during the COVID-19 pandemic.  If you are experiencing a hardship due to the pandemic, please contact your loan officer about the following relief plans:

  • Consumer loans:  our customers will soon be receiving a letter from our president Kyle Russell outlining payment deferment options for up to three months.  The letter includes a form to complete and return by mail, email, or in our drive-thru to utilize this relief.
  • Mortgage loans:  we are also offering 90-day relief for our home mortgage customers.  Please contact your mortgage lender to discuss the options.

We continue to offer full-service banking services through our drive-thru lanes. And our online and mobile banking platforms are other good options that allow you to bank from home.  If you are not already an online banking user, enroll now at https://www.citizensbankofkansas.com/Personal/OnlineServices/.

We’re happy to report that our staff remains virus free by practicing good hygiene habits and social distancing.  We appreciate your patience and understanding in these uncertain times.  We’re all in this together.

Be well.

March 17th, 2020 UPDATE:
Due to continuing developments with the COVID 19 virus, Citizens Bank of Kansas has decided to temporarily move to drive-thru only teller access beginning Wednesday, March 18, 2020.  This decision is made to protect the health of our staff and customers by practicing social distancing.  Lobby entrance will be by appointment only.

You can check drive-thru hours of any of our locations from the drop-down menu at https://www.citizensbankofkansas.com/Community/Locations/. 

During this time, you can also access your accounts anywhere, anytime with our online and mobile banking tools and ATMs. If you haven’t already, please enroll in online banking and download our mobile app.   https://www.citizensbankofkansas.com/Personal/OnlineServices/. 

We will continue to provide the banking services you’ve grown to expect and trust. Let’s work to keep our communities healthy.  We’re all in this together.

March 13th, 2020 UPDATE:
It’s a strange time – facing a pandemic and the economic ramifications.  On behalf of the Management of Citizens Bank of Kansas, we want you to be aware of our plan to make sure your banking needs are met while we protect the health of our employees.

  • We will continuously monitor directives from public health organizations such as the Center for Disease Control (CDC) and World Health Organization (WHO), plus state and local agencies.  For the latest information, visit https://www.cdc.gov/.
  • We have a Pandemic Plan in place, which has been activated.  The primary goal of this plan is to give guidance to our employees to remain healthy and avoid the virus.  Encouraging healthy habits such as frequent handwashing and social distancing are key components.
  • We will proactively work with customers to utilize online resources, electronic channels, and ATMs.  While all banking functions cannot be completed electronically, the resources should be thoroughly investigated.
  • In the event COVID19 becomes widespread in south central Kansas, it may be necessary for us to limit teller transactions to the drive-thru lanes only.  We will provide notice of any such action in advance via notices in our branches, email, our website, and social media sites.

History shows that taking strong steps now to slow the spread of the virus will help communities and individuals.  We will continue to be good citizens for our communities as we work through this pandemic.  Thank you for choosing Citizens Bank of Kansas.  Be well. 

Jane Deterding
Chairman of the Board/Owner