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Paycheck Protection Program Information

UPDATE 2:00 PM 6/24/2020: Our PPP loan program is closed.

In order to help Americans affected by the COVID-19 pandemic and the resulting economic fallout, federal lawmakers have enacted a $2 trillion economic stimulus package, called the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).

Part of the CARES Act includes support for small businesses affected by the pandemic, including the Paycheck Protection Program (PPP).

What is a Paycheck Protection Program (PPP) Loan?

PPP loans provide funds to small businesses to keep their workers on the payroll. These loans are forgiven if all employees are kept on the payroll for eight weeks and the money is used directly for payroll, rent, mortgage interest, or utilities (at least 75% of the loan must be used for payroll for the loan to be forgiven).

You can find more information about the PPP on the Small Business Administration’s (SBA) website.

Who is Eligible for a PPP Loan?

Businesses or entities (listed below) that have been in operation since February 15, 2020 are eligible for a PPP loan:

  • Any small business concern that meets SBA’s size standards (either the industry-based sized standard or the alternative size standard)
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the lesser of:
    • 500 employees
    • or that meets the SBA industry size standard, if more than 500
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Sole proprietors, independent contractors, and self-employed persons

Funds are limited and loan requests are subject to NWCU review, Small Business Administration Review, and the availability of funds. Unfortunately, with the significant volume of applications already submitted to NWCU and other lenders, it is quite possible that not every qualified applicant will receive loan proceeds under PPP – even with the authorized additional funding.

How Do I Apply for a PPP Loan?

UPDATE 2:00 PM 6/24/2020: Our PPP loan program is closed.

NWCU will begin reviewing applications from existing business members on April 8, 2020.

To apply for a PPP loan from Northwest Community Credit Union, you'll need to gather some financial informations and documents. You'll apply electronically.

An application will only be processed if complete. A completed application includes all of the following:

  • A completed SBA application Form 2843
  • Supplemental Loan Application Information Form
  • Payroll information, including
    • Quarterly Tax Form 941 for all four quarters of 2019
    • Or Form 944 for 2019
    • Or 2019 Complete 1040 tax returns, if filed
    • Borrower will need to report any salaries greater than $100,000 in 2019 or any independent contract payments during the year.
  • Organization documents
    • Articles of Incorporation and Bylaws (Corporations)
    • Articles of Organization and Operating Agreement (LLCs)
    • Partnership Agreement (Partnerships)

Once you have submitted a completed application, we'll follow up with you if you've been approved.

What can I use the PPP Loan For?

  • Payroll costs:
    • Salary, wages, commissions, tips, or equivalent.
    • Employee Benefits, including paid time off, allowance for dismissal, associated costs for group health care benefits, including insurance premiums.
    • Retirement benefits.
    • State and local taxes assessed by employee compensation.
  • Interest payments on mortgage obligations (this does NOT include prepayment of or payment of principal on mortgage obligations).
  • Rent, including rent under lease agreements – must have been in force before February 15, 2020.
  • Utilities – must have been in force from February 15, 2020.
  • Interest on other debt obligations that were incurred before February 15, 2020.

How Do I Ensure the PPP Loan is Forgiven?

You are eligible for loan forgiveness from the Small Business Administration equal to the amount you spent on the following items during the eight week period beginning on the loan’s date of origination:

  • Payroll costs (at least 75% of the loan must be used for payroll costs)
  • Interest on your mortgage obligation incurred during the ordinary course of business
  • Rent on a leasing agreement
  • Utility payments (gas, water, electricity, telephone/internet, transportation)
  • Additional wages paid to tipped employees

Any loan forgiveness will be determined by the SBA’s Program rules. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.