Paycheck Protection Program1

The U.S. Small Business Administration (SBA), in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, reopened the Paycheck Protection Program (PPP) on January 11, 2021.

Changes to the program include:

  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan (e.g. small businesses, with decreased gross receipts, who used their First Draw PPP fully and appropriately);
  • Borrowers can set the loan’s covered period to be any length between 8 and 24 weeks;
  • PPP loans may cover additional expenses: operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • All eligible PPP applications are welcome; however, borrowers must first join the Credit Union before their loan can be funded;
  • PPP loans are now available to 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations; and
  • PPP loans now provide increased flexibility for seasonal employees.

Review the Paycheck Protection Program Guidelines for additional details (links to the SBA and Treasury Department provided below). To discuss your individual circumstances and potential solutions, schedule an appointment with a PPP Lending expert by emailing SBA@apfcu.com.

Applications close May 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).

• Payroll documentation supporting the requested loan amount which is based upon average monthly Payroll 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 payroll records of the borrower certified by the officer of the borrower or sole proprietor; and payroll 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).

• Two forms of identification for all signers first of which must be a current driver's license or government-issued identification card and the second form must be a Social Security card, current passport, or other acceptable government-issued identification. 

• 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.

Top-line Overview of First Draw PPP

Top-line Overview of Second Draw PPP

 

Step 1-Download the Payroll Protection Program Second Draw Application here

- or download the Payroll Protection Program First Draw Application here.

  1. Print Application

  2. Fill out the application

  3. Scan or take a picture of the filled out application for upload in Step 2

 

Step 2-Upload it to the application form here.

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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.