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Paycheck Protection Program

Helping small businesses and supporting local jobs

Borrow up to 2.5x average monthly payroll costs.*

At least 60% of PPP funds must be used to cover payroll expenses, with the remaining available to cover qualified expenses like mortgage interest, rent or utilities.

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* Visit the SBA website for qualifying expenses.

First U.S. is now accepting applications for Paycheck Protection Program (PPP) loans as part of our continuing effort to help small businesses and support local jobs. During the first round of PPP loan availability, Credit Unions helped to save more than 1.8 million jobs with PPP loans focused on small businesses, averaging less than $50,000 each.

What is it?

PPP loans are short-term loans of up to 2.5 times average monthly payroll expenses, plus up to 40% of the proceeds may be available to help cover expenses like mortgage interest, rent and utilities.

During the current PPP eligibility period (through March 31, 2021 or until designated funds run out), the program is divided into two types of borrowers:

  • First Draw PPP Loan – small business borrowers that have not previously taken a PPP loan, and
  • Second Draw PPP Loan – small businesses borrowers that have already taken a PPP loan

First Draw PPP Loans

If you have not received PPP funds previously, your small business may be eligible to receive funds to cover payroll expenses, mortgage interest, rent, utilities – and other items added as a result of the most recent stimulus legislation in December 2020. Visit the SBA site for eligibility.

As long as employee retention requirements are met and the funds are used for eligible expenses, the SBA will forgive loans. Basic loan information:

  • Your business must have been in operation as of February 15, 2020 and employ 500 or fewer employees
  • You must have a First U.S. business account (with checking) in the same name as the business with the appropriate Employer Identification number (EIN). All sole proprietors are required to have an EIN if you have more than one employee. Business membership requires you maintain a $25 Business Membership Savings account.
  • Interest rate is 1%, with a loan maturity of five years
  • Visit the SBA site for information about loan forgiveness
  • No payments are due during the loan deferral period (either the date First U.S. receives remittance for the funds or, if you have not applied for forgiveness, 10 months after your covered period, whichever is earlier)

First Draw PPP loans are available from First U.S. to a maximum of $350,000.>

Second Draw PPP Loans

If you are considering a Second Draw PPP, your small business may be eligible to receive funds to cover payroll expenses, mortgage interest, rent, utilities – and other items added as a result of the most recent stimulus legislation in December 2020. Visit the SBA site for eligibility

A Second Draw PPP loan requires that proceeds from your First Draw loan be fully utilized. Then, as long as employee retention requirements are met and the funds are used for eligible expenses, the SBA will forgive loans. Basic loan information:

  • Your First Draw PPP Loan must have been made by First U.S.
  • You must be able to demonstrate a 25% decrease in gross receipts during the same quarterly period in 2020 versus 2019
  • Your business must have been in operation as of February 15, 2020 and employ 300 or fewer employees
  • You must have a First U.S. business account (with checking) in the same name as the business with the appropriate Employer Identification number (EIN). All sole proprietors are required to have an EIN if you have more than one employee. Business membership requires you maintain a $25 Business Membership Savings account.
  • Interest rate is 1%, with a loan maturity of five years (this is an increase from 2 years for loans made after June 5, 2020)
  • Visit the SBA site for information about loan forgiveness
  • No payments are due during the loan deferral period (either the date First U.S. receives remittance for the funds or, if you have not applied for forgiveness, 10 months after your covered period, whichever is earlier)

Second Draw PPP loans are available from First U.S. to a maximum of $350,000.

What Do I Need To Apply?

If you are seeking a Second Round PPP loan and have submitted documentation with your previous application, then submit an SBA PPP Application.

For First Round PPP loans:

  1. SBA Paycheck Protection Program Application
  2. 2019 Tax Return.
  3. Copy of your current ID (unless already on file)
  4. Documentation that shows total payroll costs for 2019, 2020, or the last 12 months. This can include:
    1. Form 941 salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee)
    2. Employee benefits including costs for vacation time, parental, family, medical, or sick leave
    3. Allowance for separation or dismissal
    4. Payments required for the provisions of group health care benefits including insurance premiums
    5. Payment of any retirement benefit
    6. State and local taxes assessed on compensation (Federal taxes are not included)
    7. For sole proprietors and independent contractors, you will need to provide documentation that shows wages, commission, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
    8. The applicant must also submit documentation adequate to establish that the applicant experienced a revenue reduction of 25% or greater in 2020 relative to 2019. Such documentation may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, quarterly financial statements or bank statements (signed by the applicant).

Program information effective 02/15/2021 and subject to change.