Important Updates Regarding the Paycheck Protection Program as of 04/06/2021
Paycheck Protection Program – Part 2
Since April 2020, SLFCU has worked to support small businesses through the Small Business Administration (SBA) Paycheck Protection Program. We honor the critical role that our business and commercial members play in our local and national economies, and are honored to have walked with them every step of the way for the last year.
Please note the following changes to SLFCU’s PPP loan eligibility requirements:
- As of 5:00 PM on Friday, April 9, 2021, we will no longer accept applications from non-members who do not have an open account prior to that date.
- We will stop taking new applications from existing SLFCU members as of Friday, April 30, 2021. This will allow us time to process all submitted applications prior to the closure of the PPP loan portal by the SBA on Monday, May 31, 2021.
As always, all interested applicants should read the information below before applying for a PPP loan. All applications and questions must be submitted via secure message in SLFCU’s online banking system.
WHAT YOU NEED TO KNOW IF YOU ALREADY HAVE A PPP LOAN
We have prepared the following information in an effort to help SLFCU small business owners prepare to apply for a Second Draw PPP Loan. Please note, as was the situation with the first round of PPP funding, information and guidelines will likely change rapidly. As always, it is important that you continue to consult the information from the U.S. Department of Treasury and the U.S. Small Business Administration (SBA), as their guidance supersedes any and all information on this page.
Please note: SLFCU is now accepting PPP Loan Forgiveness applications. Please view this page to learn more.
The following applications have been released, and the SBA Portal is now open.
Any small business that received a PPP loan will be eligible to apply with us for a Second Draw PPP Loan if they meet the following requirements:
- Your business has 300 employees or less (Note: this requirement previously included businesses of up to 500 employees)
- Your business experienced a 25% or greater decline in revenue (or gross receipts) in any quarter of 2020 as compared to the same quarter in 2019. (For businesses formed between June 30, 2019, and February 15, 2020 — alternate revenue tests apply)
- Your business already received a PPP loan, and you have used, or will use the full amount
For loans of $150,000 or less: You do not have to provide documentation of the 25% revenue decline when you apply; however, this documentation will be required at the time you submit your PPP Loan Forgiveness Application.
Businesses applying for the new Shuttered Venue Operator grants are ineligible for a PPP Loan. This is a new program under the Act that will be administered directly by the SBA and targets movie theaters, museums, live performing arts, and related businesses.
All loans are subject to a maximum eligible loan amount of $2 million.
Loan amounts will generally be the same amount as your initial PPP Loan — calculated as 2.5 times your average monthly payroll costs.
Accommodations and Food Services Businesses (NAICS Code 72): Any business meeting this classification is eligible for a loan amount of 3.5 times your average monthly payroll costs. This is equivalent to your initial PPP loan plus an additional 40% (e.g., if your initial PPP loan was approved for $100,000, your Second Draw PPP Loan would be in the amount of $140,000). Please read www.naics.com/search to ensure you understand this code and the importance of including it on your application.
Changes to Eligible Expenses:
The Act expands the use of PPP loan proceeds, including additional eligible expenses. This does not remove the requirement that at least 60% of the loan proceeds must be used for Payroll Costs. The change is effective for all PPP loans that have not already been forgiven.
Please read this information about eligible expenses prior to completing your application. Important information includes sections #11a on page 48, which continues to the top of page 52, as well as section #11b on pages 52 - 54 (specifically for individuals with income found on Form 1040 Schedule C).
The Act clarifies that the definition of Payroll Costs includes:
- Group Life Insurance
- Disability Insurance
- Vision Insurance
- Dental Insurance
Additional Eligible Expenses
- Covered Operations Expense
- Covered Property Damage Costs
- Covered Supplier Costs
- Covered Worker Protection Expenditures
SBA Paycheck Protection Program for First Time Applicants as of 1/15/2021
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the U.S. Small Business Administration added the Paycheck Protection Program to their loan program. The program is intended to provide economic relief to small businesses nationwide adversely impacted under the Coronavirus Disease 2019 (COVID-19) Emergency Declaration issued on March 13, 2020. SLFCU is currently accepting new first time PPP loan applications.
WHAT YOU NEED TO KNOW TO APPLY
As of December 27, 2020, Congress approved additional relief funds to be administered through the SBA Paycheck Protection Program. SLFCU is accepting new applications for this program. While we will work to include as many eligible business people as possible in this program, it is important that members understand that applications do not guarantee a loan, as there is a limited amount of funds available for this program.
This application is exclusively for the Paycheck Protection Program.
Please Note: To help us work as efficiently as possible, please do not call our contact center seeking more information. Our lenders will contact members as they work through the applications.
ELIGIBILITY TO APPLY THROUGH SLFCU
- Loan applications of $1,000 – $2,000,000 may be requested per SBA guidelines.
- Self-employed members and independent contractors may also apply.
NEXT STEPS FOR ELIGIBLE SLFCU BUSINESS MEMBERS
You must be enrolled in SLFCU’s online banking platform to submit your application. Enrollment is easy and a few steps away. Note: All applications must be submitted online. Paper applications will not be accepted.
- If your business is a sole proprietorship or LLC using a social security number, please enroll in personal online banking.
- If your business has an EIN, please enroll in business online banking.
Learn more: SLFCU online banking
AFTER YOU HAVE ENROLLED IN ONLINE BANKING
Download and complete the PPP Borrower Application Form
Once your application is complete, print, sign, and date all applicable areas. We must have original signatures to process the application. Electronic signatures cannot be accepted.
- Log in to online banking.
- Go to the Message Center in online banking by clicking the down arrow to the right of your name or business name in the upper right corner of the screen and choose Messages.
- Choose Compose to initiate a new message.
- In the Subject, select Submit SBA Paycheck Protection Program from the drop-down menu.
- Click on Attach Files to upload your completed application (previously downloaded from this page) and all supporting documents. You must attach your application, payroll records, and calculation of the loan amount requested. Examples of how to calculate the amount can be found on pages 8-10 of the SBA Rules for Borrowers.
SLFCU Business Services will contact you as soon as possible to advise you on the status of your application.
IMPORTANT NOTE: It is our intention to be transparent with all members during this difficult time. While we will work to include as many eligible applicants as possible in this program, it is important that members understand that applications do not guarantee a loan, as there is a limited amount of funds available for this program. As our nation and community face a rare once-in-a-lifetime challenge, it is important that aid and funds reach businesses in true, critical need. We urge all members to investigate all other financial institutions as well as business assistance programs through local, state, and national agencies.
New Round of SBA Paycheck Protection Program Funding Information As Of 12/24/2020
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the U.S. Small Business Administration added the “Paycheck Protection Program” to their loan program. The program is intended to provide economic relief to small businesses nationwide adversely impacted under the Coronavirus Disease 2019 (COVID-19) Emergency Declaration issued on March 13, 2020.
Congress is currently working out the details on a second round of PPP funding. SLFCU will participate again in the program and is waiting for final guidance and application availability from the U.S. Small Business Administration (SBA), who will continue to facilitate the program.
WHAT YOU NEED TO KNOW
Currently, SLFCU and other lenders are waiting for more information from the SBA, who has publicly stated that they will issue regulations and guidance within 10 days from the time the legislation is approved and signed by the President of the United States. While we will work to include as many eligible SLFCU Business members as possible in this program, it is important that members understand that an application does not guarantee a loan, as there is a limited amount of funds available for this program.
PLEASE NOTE: To help us work as efficiently as possible, please do not call our contact center seeking more information. Instead, please return to this web page for updates.
U.S. Small Business Administration - Economic Injury Disaster Program (EIDL)
- Online application
- Assistance for applying and new account signup (from the New Mexico Small Business Development Network)
- EIDL Fact Sheet
- Small Business Owner’s Guide to the CARES Act (from the New Mexico Economic Development Department)
- Full terms and guidelines from the SBA