Payment Protection Program (PPP)

Small Business Loan Assistance to help businesses impacted by COVID-19.

The Economic Aid Act, recently passed by Congress, allocates additional funds to support the SBA Paycheck Protection Program (PPP). The approved $284 billion will be made available to both first time PPP borrowers as well as qualifying existing PPP borrowers in need of a second draw.

 

New PPP First Draw Loans

If you did not take advantage of the Paycheck Protection program in 2020, you now have the opportunity to request a first draw loan. Please see the SBA's Top-Line Overview First Draw PPP (PDF) for more information.

Existing PPP Loan borrowers may be eligible for a second draw loan. Please reference the SBA's Top-Line Overview Second Draw PPP (PDF) for more information.

Visit the Paycheck Protection Program website for more information.

Eligibility

  • Your business was in operation on February 15, 2020
  • Any eligible small business or non-profit 501(c)3 with fewer than 500 employees. This includes sole proprietorships, independent contractors and self-employed persons, private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19

In addition to the SBA requirements, Seasons FCU also requires you to have an established business membership at the time of application.

How to Apply

Download, complete and save the following form.

SBA PPP First Draw Application (PDF)

Once you have finished filling out the application and collected all the required documents, please contact us by emailing retailbanking@seasonsfcu.org to begin your PPP Loan process.

Gather all supporting documentation.
This includes payroll information. Please see below for Required Documentation needed. It is very important that you have all the necessary documents prepared and ready to submit.

Application Deadline
Applications for the PPP program will be accepted through March 31, 2021, or until the funding provided by the Economic Aid Act has been exhausted.

 

 

PPP Second Draw Loans

Existing PPP Loan borrowers may be eligible for a second draw loan. Please see the SBA's Top-Line Overview Second Draw PPP (PDF) for more information.

Visit the Paycheck Protection Program website for more information.

Eligibility

  • Your businesses was in operation on February 15, 2020
  • Businesses who have used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower, AND;
  • Businesses with 300 or fewer employees who have experienced revenue reduction of 25% or greater in any 2020 quarter compared with the same quarter in 2019

In addition to the SBA requirements, Seasons FCU also requires you to have an established business membership at the time of application. 

How to Apply

Download, complete and save the following form.

SBA PPP Second Draw Application (PDF)

Once you have finished filling out the application and collected all the required documents, please contact us by emailing retailbanking@seasonsfcu.org to begin your PPP Loan process.

Gather all supporting documentation.
This includes payroll information. Please see below for Required Documentation needed. It is very important that you have all the necessary documents prepared and ready to submit.

Application Deadline
Applications for the PPP program will be accepted through March 31, 2021, or until the funding provided by the Economic Aid Act has been exhausted.

 

 

Qualifications Checklist

  • Must have a Seasons Federal Credit Union business membership. If you don’t have a business membership with us, we will open one when you apply.
  • Business/Trade Name must be registered and in good standing with the Secretary of State.
  • Have all the required documents needed to apply.

 

Documentation You'll Need Before Applying

  • A completed SBA PPP application appropriate to your request: SBA PPP application for First Draw PPP borrowers or SBA PPP Second Draw application for borrowers with existing PPP loans.
  • Self-Employed – No Employees
    • 2019 or 2020 IRS Form 1040 Schedule C
    • 2019 or 2020 IRS Form 1099-MISC detailing non-employee compensation received (box 7), Invoice, bank statement or book of record establishing you were self-employed in 2019 or 2020
    • Invoice, bank statement or book or record establishing you were in operation on February 15, 2020
  • Self-Employed - With Employees
    • 2019 or 2020 IRS Form 1040 Schedule C
    • 2019 or 2020 IRS Form 941 for each quarter of the year
    • State quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
    • A payroll statement or similar documentation from the pay period that covered February 15, 2020 - to establish you had employees on that date.
  • Partnership
    • 2019 or 2020 IRS Form 1065 – Schedule K-1
    • 2019 or 2020 IRS Form 941 for each quarter of the year
    • State quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
    • A payroll statement or similar documentation from the pay period that covered February 15, 2020 - to establish you had employees on that date.
  • C-Corp/S-Corp
    • 2019 or 2020 IRS Form 1120 or 1120-S
    • State quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
    • Documentation of any retirement or health insurance contributions, must be provided to substantiate the applied for PPP loan amount.
    • A payroll statement or similar documentation from the pay period that covered February 15, 2020 - to establish you had employees on that date.
  • Non-Profit
    • 2019 or 2020 IRS Form 990
    • 2019 or 2020 IRS Form 941 for each quarter of the year
    • State quarterly wage unemployment insurance tax reporting form from each quarter (or equivalent payroll processor records or IRS Wage and Tax Statements)
    • Documentation of any retirement or health insurance contributions, must be provided to substantiate the applied for PPP loan amount.
    • A payroll statement or similar documentation from the pay period that covered February 15, 2020 - to establish you had employees on that date.

 

 

General Questions about PPP

What is the Paycheck Protection Program (PPP)?
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed into law on March 27, 2020. It allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides loans to small businesses who need funds to maintain their payroll during this emergency. Importantly, these loans may be forgiven by SBA if borrowers comply with the SBA rules for forgiveness.

More recently, the Economic Aid Act signed on December 27, 2020 allocates an additional $284 billion to the Paycheck Protection Program for First Draw PPP loans and Second Draw PPP loans.

 

What are the maximum loan amounts?

  • The maximum loan amount is determined based on criteria set forth by the SBA. Generally, the maximum loan your business qualifies for will be based on your average monthly payroll over the prior 12 months and multiplying that number by 2.5. Certain industries with a NAICS code beginning with 72 such as accommodation and food services may qualify to multiply their average monthly payroll by 3.5.
  • Second Draw PPP loans are not to exceed $2 million
  • For sole proprietors, independent contractors, and self-employed individuals, the sum of any compensation that is a wage, commission, income, or similar compensation. (Not to exceed $100,000).

 

Who is eligible to apply?
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

 

Additional information for 2021 PPP loans:

  • Business must show at least a 25% reduction in gross receipts in the first, second, or third quarter of 2020 compared to the same quarter in 2019.
  • Second-time PPP borrowers will generally be eligible to borrow an amount to 2.5 times their average monthly payroll costs. Businesses with NAICS codes beginning with "72" will be able to borrow up to 3.5 times their average monthly payroll costs. NAICIS class "72" typically includes food service and accommodations industries.
  • Borrowers are still required to spend at least 60% of funds on payroll-related expenses.
  • Non-payroll expenses have been expanded to include personal protective equipment, supplier costs, operations expenditures, and others.
  • Borrowers will have a choice of an 8-week or a 24-week covered period.

 

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.

 

Additional Resources

We understand that this can be a challenging process, and we are here to help you navigate it. If you have any questions, please reach out to us at retailbanking@seasonsfcu.org.

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