PFCU is here to help keep your business running during this COVID-19 crisis with the SBA Paycheck Protection Program (PPP). We need our local businesses. (Not just because we can’t live without our favorite pizza joint or cleaners – who always knows how to get out those grease stains from the pizza we dropped on our shirt.) Small businesses are the lifeline to our community. Just like our small businesses, PFCU are just people helping people. So, let us help.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep your workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight (8) weeks and the money is used for payroll, rent, mortgage interest or utilities (see the SBA web site for further qualifications and restrictions on use of funds).
FIRST DRAW PPP loans are for those borrowers who have not received a PPP loan before August 8, 2020.
SECOND DRAW PPP loans are eligible small businesses with 300 employees or less, that previously received a a First Draw PPP loan and will use or have used the full amount only for authorized uses, and that can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. The maximum amount of a Second Draw loan is $2 million.
To view more information on PPP from the SBA, click here.
PPP Applications have been
extended through May 31, 2021
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 will begin making loan payments to their PPP lender.
First Draw PPP Loan forgiveness terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8-to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other elibigle expenses; and
- At least 60 percent of the proceeeds are spent on payroll costs
PLEASE NOTE: THE SBA HAS PAUSED FORGIVENESS REVIEW UNTIL MARCH 5, 2021. However, you can still submit your applications during this time.
Disclosure: The above is for informational purposes only. All applications are subject to SBA approval. Not all applications will be approved. Lender will not fund such loans without SBA direct approval. For further details on the SBA PPP please visit www.sba.gov.