Paycheck Protection Program1
The Paycheck Protection Program is a major component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which provides 100% federally guaranteed loans to small businesses. The loans may be forgiven if small business borrowers maintain their paychecks or restore the number of employees and/or salaries affected by the crisis by June 30, 2020. Review the Paycheck Protection Program Guidelines for additional details. To discuss your individual circumstances and potential solutions, schedule an appointment with an SBA Lending expert by emailing SBA@apfcu.com.
Does my business qualify for the second round of PPP loans?
- Do you have 300 or fewer employees?
- Did you have a reduction in quarterly revenues of at least 25% compared to the same quarter in 2019?
- Did you use the full amount of your first-draw PPP loan?
- If you answered yes to ALL three, then you may qualify. Begin preparing your documentation now.
Applications close March 31, 2021.
- Available Loan Amounts
• Loans can be up to 2.5 x the borrower’s average monthly paycheck costs.
- About Loan Forgiveness
A borrower may be eligible for loan forgiveness equal to the amount spent on the following items during the 8 or 24 week period beginning on the date of the origination of the loan, not more than 40 percent of the loan forgiveness amount may be attributable to nonpayroll costs:
• Paycheck costs (using the same definition of paycheck 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
The loan forgiveness cannot exceed the principal.
- Your Next Steps
Please gather the below documentation in support of your application:
• Employer’s Quarterly Federal Tax Returns, Form 940 starting with first quarter of 2019.
• 2019 Forms 1099-MISC for independent contractors (for independent contractor applications only).
• Paycheck documentation supporting the requested loan amount which is based upon average monthly Paycheck Costs (including compensation; tips; vacation, parental, family, medical or sick leave; group healthcare coverage; state and local taxes assessed on compensation). This can include internal paycheck records of the borrower certified by the officer of the borrower or sole proprietor; and Paycheck records from a third-party paycheck provider.
• Documentation supporting the person(s) authorized to enter into agreements on behalf of the Applicant (e.g. Articles of Incorporation, Operating Agreement, Corporate Bylaws, Secretary Certificate, Meeting Minutes, etc).
• If you do not currently bank with APFCU, your application may be subject to additional information requests so we can complete our credit underwriting process and confirm compliance with federal regulatory requirements.
The Paycheck Protection Program is implemented by the Small Business Administration with support from the Department of the Treasury.
- Utilize the SBA's website for additional details.
- Utilize the U.S. Treasury website for additional updates and information.
Step 1-Download the Payroll Protection Program Second Draw Application here.
- or download the Payroll Protection Program First Draw Application here.
- Print Application
- Fill out the application
- Scan or take a picture of the filled out application for upload in Step 2
Step 2-Upload it to the application form here.
1 - All applications are subject to review for verification of eligibility to participate in the Small Business Administration (SBA) Paycheck Protection Program (Program) and APFCU maintains discretion to require additional underwriting or federal regulatory compliance information or documentation, outside of SBA requirements, for due diligence purposes. All applications submitted are not complete until approved by APFCU and accepted by the SBA. APFCU cannot guarantee the timing of the submission of your loan to the SBA or that your loan will be approved by APFCU or accepted by the SBA. APFCU is not responsible for any false or misleading information provided by an applicant in any application for relief under the Program. APFCU will not pay Agents for assistance they may provide an Applicant in obtaining a Program loan.