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April 1, 2021 Update
President Joe Biden
signed the PPP Extension Act of 2021 into law on March 30th, extending the
Paycheck Protection Program an additional two months to May 31, 2021.
If you want to apply for the Second Draw PPP Loan Program (or if you simply want to apply for Forgiveness for the First Draw PPP Loan Program) please email us at: BusinessTeam@mycvcu.org.
March 1, 2021 Update
The deadline to apply for the Second Draw PPP Loan Program is March 31, 2021. The SBA established a 14-day, exclusive PPP loan application period for businesses and nonprofits with fewer than 20 employees. This exclusive period will be in effect until Wednesday, March 10th. This will give lenders and community partners more time to work with the smallest businesses to submit their applications, while also ensuring that larger PPP-eligible businesses will still have plenty of time to apply for and receive support before the program expires on March 31, 2021.
If you want to apply for the Second Draw PPP Loan Program (or if you simply want to apply for Forgiveness for the First Draw PPP Loan Program) please email us at: BusinessTeam@mycvcu.org
Jan. 19, 2021 Update
The Second Draw PPP Loan Portal has been open since Friday the 15th and emails were sent out on Jan. 15 to all of our PPP borrowers with a link to apply. If you have not received an email and you wish to apply for the Second Draw PPP Loan, please email us at: BusinessTeam@mycvcu.org
Second Draw PPP Updates - here is what we know so far:
- The SBA has released a Guide to help borrowers apply for Second Draw PPP Loans (click here to view it).
- The number of applicants has been lower than expected. To date, only 20% of the First Draw PPP Applicants have applied for the Second Draw PPP Loan. Overall, the panic that money will be gone should slow as there has not been a huge amount of activity this weekend. However, this is subject to change.
- The SBA is taking up to 72 hours to approve loans right now. This process confirms that the whole program will move a bit slower than the first time.
- Borrowers must select the correct entity type for their business. The SBA is checking the prior application and making sure it matches the original PPP application. If you want to confirm the entity type on your original PPP application, please email us at: BusinessTeam@mycvcu.org
- The SBA has limited the loan amount to no more than $30k per employee. This is generally not an issue, but there have been some applications we have seen that have understated employees. Typically this was because they are not including part time and owners in the count.
- The SBA has stopped many more applications than expected with an "In Review" status. If your loan has been flagged as "In Review", we will let you know and work with you and the SBA to resolve any issues.
Jan. 14, 2021 Update
Second Draw Paycheck Protection Program Loan Application Portal to Open January 15
The SBA will open the online portal and begin accepting
Second Draw PPP Loan Applications starting Friday, January 15th
from borrowers who apply through small banks and credit unions. Coosa
Valley Credit Union has partnered with Windsor Advantage to help process these
Second Draw PPP Loan Applications. These applications will be processed
completely online within a secure online portal that will be set up by each
borrower. Invitations to create the online portal and apply for the
Second Draw PPP Loan will be sent to all First Draw PPP borrowers starting
Friday, January 15th via email. The email
invitation will be coming from Windsor Advantage, so please check your normal
inbox as well as your SPAM and JUNK folder for the email. Windsor will
send the email to the same email address that was listed on your First Draw PPP
Jan. 11, 2021 Update
Second Draw Paycheck Protection Program Opens only for Certain Financial Institutions
The U.S. Small Business Administration (SBA), in consultation with the Treasury Department, announced that the Second Draw Paycheck Protection Loan Program (PPP) will open on Wednesday, January 13th for only the following institutions:
- Community Financial Development Institution
- Minority Depository Institution
- Community Development Corporation
- Microlender Intermediary
Most banks and credit unions (including Coosa Valley Credit Union) are not included in the above list.
However, shortly following the period above, SBA will announce the full availability for all lenders who previously participated in the PPP to have the opportunity to accept new applications.
We do not know when this date will be but will notify "First Draw" borrowers when and how they can apply for the Second Draw PPP Loan.
Thanks for your continued patience and if you have any questions, please email us at: BusinessTeam@mycvcu.org
Jan. 6, 2021 Update
On Jan. 6, 2021, SBA released the new Interim Final Rules (IFR) regarding the "Second Draw" of the SBA PPP Loan Program. Although we expect some minor changes to be made to the program, the main points of the program are as follows (you can view the document in its entirety by clicking here):
- The "Second Draw" of the SBA PPP Loan Program will only be open to borrowers who participated in the "First Draw" of the SBA PPP Loan Program
- The maximum loan amount will be similar to the "First Draw" of the PPP Loan program (2.5 times the average monthly payroll expense of the business) up to a maximum loan amount of $2 million
- The loan terms and conditions of the "Second Draw" will be similar to the "First Draw" (5 year term, 1% rate, no fee paid by the borrower)
- The "Second Draw" will also be eligible for 100% forgiveness
- In addition to the qualifying criteria of the
"First Draw" of the SBA PPP Loan Program, businesses must also meet the
following additional requirements to qualify for the "Second Draw":
1. Have fewer than 300 employees
2. Have sustained a 25 percent drop in revenue in any quarter of 2020 when compared to the same quarter in 2019 (we expect more details to come regarding this issue)
3. Have spent all the proceeds from the "First Draw" of the PPP Loan Program on eligible expenses.
- Borrowers who participated in the "First Draw" of the PPP Loan Program can apply for the "Second Draw" before they apply for forgiveness on the "First Draw"
Please note: Although we have received the Interim Rules of the program from the SBA, we have not yet been told HOW the SBA will accept these applications (what processes to follow and what forms to use) or WHEN they will start taking applications. We expect to receive this additional information over the coming days and we will communicate it to you as soon as we know.
Thanks for your continued patience and if you have any questions,
please email us at: BusinessTeam@mycvcu.org