Paycheck Protection Program (PPP)
We have all the information you need regarding Small Business Administration (SBA) PPP loans.
SBA Paycheck Protection Program (PPP)
Updated as of 3/2/2021
The Biden administration recently announced some changes and updates to the PPP program. The SBA has informed us that they will not be releasing plans for implementation of these changes until sometime in March at the earliest. We are continuously monitoring any developments from the SBA and will communicate any new information on this page. Additional information about the PPP can be found on the SBA website.
We want to begin working on your application and will have the ability to submit completed applications to the Small Business Administration (SBA) after Tuesday, January 19, 2021. Please send an email to our team at ppploans@bluefcu.com to request an SBA PPP loan application.
On December 27, 2020, former President Trump signed a bill providing a relief package that includes significant benefits for small businesses. The legislation authorizes a new round of Paycheck Protection Program (PPP) funding. Approximately $284 billion has been set aside for additional lending, including the ability for eligible businesses to request a second round of funding through the program.
SBA PPP Loan Forgiveness
If you already have received a PPP loan with Blue, you may have more flexibility. Program rules have extended the time to utilize the loan funds and receive forgiveness from 8 to 24 weeks. The bill also lowers the percentage that must be used for payroll from 75% to 60%. With the change, that allows your business up to 24 weeks to spend the loan funds. It is not necessary to apply for forgiveness at this time, and accrued interest will also be waived on loan funds that are forgiven.
Please review these documents before applying for forgiveness:
- Borrower Checklist
- Borrower PPP Forgiveness Platform Guide for Loans $150,000 and Under
- PPP Forgiveness Platform Preview 3508S for Loans Over $150,000
Important Aspects of the PPP Second Draw
- 8 to 24 week covered period
- Approvals take 24-48 hours this time, not instantly. (SBA’s effort to mitigate fraud )
- You must have used 100% of your First Draw PPP funds on qualified expenses before receiving a Second Draw PPP. Don’t fret! You don’t have to have applied for, or received, full forgiveness yet. We just need reasonable assurance your first PPP loan will be fully forgiven.
- Must have experienced at least a 25% reduction in gross receipts between comparable quarters in 2019/2020.
- NAICS code 72 (Accommodation and Food Services) receive 3.5x average monthly payroll costs as they have been especially hard hit. All others receive the 2.5x average monthly payroll costs.
What Can I be Doing to Prepare for the Second Draw?
- Start gathering your financials to show your loss in gross receipts.
- Forgiveness still has an employee retention and salary level maintenance component so we anticipate we will need to know your current employee count.
Please review these links to good summaries for you and speak to your tax or legal professional to answer specific questions you may have.
What If I Didn't Apply for a PPP First Draw Loan in the First Round?
The PPP First Draw is available if you didn’t receive an SBA PPP loan in 2020. Please send an email to our team at ppploans@bluefcu.com to request an SBA PPP loan application.
Please review these links to good summaries for you and speak to your tax or legal professional to answer specific questions you may have.
Where Can I Learn More About the Paycheck Protection Program (PPP Loan)?
The SBA has issued and continues to update guidance on this loan, including who qualifies for the program and other important details.
If you have general questions, please email ppploans@bluefcu.com and we will get back to you as soon as possible.