Paycheck Protection Program (PPP) Round Two

Under the Economic Aid Act, the Paycheck Protection Program1 was reinstated and will be in place until March 31, 2021. Eligible businesses will be able to apply for their first PPP loan or for a second draw for their existing PPP loan.

We are accepting applications from our small business Members who qualify to participate in this program. Here is what you can expect:

  • To ensure the best possible service, we intend to accept applications from applicants who established membership with UFCU on or before January 6, 2021 and remain in good standing.
  • Applications will be processed on a first-come, first-served basis. Paper applications will not be accepted at any time.
  • You will be required to include all the necessary information and documentation to submit your application. The loan portal will guide you through the process and specify the required documentation based on the information you provide. You also will have the ability to save your application and come back to it.

If you have questions about the application, required documentation, or loan calculations, please visit the checklists and FAQs provided by the Small Business Association (SBA).

Has Your Business Previously Received PPP Loan Funds?

No. This is my first-draw PPP loan.

  • Loan Terms

    • Loan maturity: 5 years
    • Interest rate: 1%
    • Collateral: N/A
    • Guarantor: N/A
  • Eligibility Requirements

    • Business must be in operation as of 2/15/20
    • Maximum number of employees: 500
    • Loan amount: up to $10,000,000
    • Loan calculation:
      • Average monthly payroll * 2.5
      • Payroll can be for 2019 or 2020
      • Wages are capped at $100,000 per employee
  • Full Forgiveness Terms

    First-Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

    • Employee and compensation levels are maintained;
    • The loan proceeds are spent on payroll costs and other eligible expenses; and
    • At least 60% of the proceeds are spent on payroll costs.
  • FAQs and Resources

    If you have questions about your application, required documentation, or loan calculations, please review the checklists and FAQs provided by the SBA:

    How to calculate First Draw PPP Loan Amounts and what documentation to provide – by business type

Yes. This is my second-draw PPP loan.

  • Loan Terms

    • Loan maturity: 5 years
    • Interest rate: 1%
    • Collateral: N/A
    • Guarantor: N/A
  • Eligibility Requirements

    • Business must be in operation as of 2/15/20
    • 1st PPP loan funds have been used or will be used, in the full amount of the First Draw PPP loan on or before the expected date on the funding of the 2nd loan.
    • Business must have experienced a revenue reduction of 25% or greater in 2020 relative to 2019. A borrower must calculate this revenue reduction by comparing the borrower’s quarterly gross receipts for one quarter in 2020 with the borrower’s gross receipts for the corresponding quarter of 2019 (Can also be on an annual basis for businesses in operation for the full year and can provide tax returns substantiating the revenue decline)
    • Maximum number of employees: 300
    • Loan amount: up to $2,000,000
    • Loan calculation: **
      • Average monthly payroll * 2.5
      • ** For businesses in the Accommodation & Food Services section, with a NAICS code beginning with 72, average monthly payroll will be multiplied by 3.5
      • Payroll can be for 2019 or 2020
      • Wages are capped at $100,000 per employee
  • Full Forgiveness Terms

    Second-draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

    • Employee and compensation levels are maintained in the same manner as required for the First-Draw PPP Loan;
    • The loan proceeds are spent on payroll costs and other eligible expenses; and
    • At least 60% of the proceeds are spent on payroll costs.
  • SBA Loan Number from PPP Draw One Required in Application

    All second-draw applications require the business to provide their first-draw SBA loan number. You can obtain this through the lender that provided your first PPP loan. If your first PPP draw was obtained with UFCU, you will find this information within Online Banking. Complete the following steps to locate your first-draw SBA loan number:

    1. Log in to UFCU Online Banking.
    2. Locate your PPP loan and click the gear wheel directly left of the account description.
    3. Select Account Details.
    4. Find the Account Number listed at the bottom of the pop-up window and make note of it for your second-draw application.

  • FAQs and Resources

    If you have questions about your application, required documentation, or loan calculations, refer to the checklists and FAQs guide provided by SBA:

    Second Draw PPP Loans: How to Calculate Revenue Reduction and Maximum Loan Amounts Including What Documentation to Provide

Additional Resources

This year has been difficult for many small businesses and individuals. We are eager to continue supporting our Business Members and community. Thank you for your membership.

Apply Online

Please gather all the necessary information and documentation before submitting your application.

Apply Now

Check the Status of Your Loan

Have you already applied and are curious about the status of your loan application?

Check Loan Status

1 The US Small Business Administration, in consultation with the US Treasury Department, opened the PPP loan portal on Monday, January 11, 2021. It will initially accept First-Draw PPP loan applications from participating Community Financial Institutions. The opening of the SBA loan system is designed to efficiently and effectively implement the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act and to ensure increased access to the PPP for minority-, underserved-, veteran- and women-owned small business concerns. SBA also is calling upon its lending partners to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities.