COVID-19 Financial Help for Your Business
For information related to how UFCU can help your business read more.
Your Business Is Likely Eligible
Loans are available to businesses that meet the following eligibility requirements:
- You have under 500 employees
- You were operational on February 15, 2020
- You’re a small business concern, a 501(c)3, a sole proprietorship, self-employed individual, independent contractor, or a veteran's organization
- You had employees for whom you paid salaries and payroll taxes
- You have been impacted by COVID-19
In addition to meeting the eligibility requirements, you must also make a good faith certification that:
- You will use the funds to retain workers and maintain payroll and other debt obligations
- You have not already applied for payroll assistance under the CARES Act.
Loan Terms & Conditions
You may borrow up to 2.5 times your average monthly payroll cost over the past 12 months or during the period February 15, 2019, to June 30, 2019, for seasonal businesses. Proceeds cannot exceed $10 million. Eligible payroll costs are:
- Wages, salaries, tips (maximum $100,000 of annualized compensation per employee), including vacation, medical and sick leave
- Retirement contributions
- Healthcare beneﬁts (includes premiums paid)
- State and local employment taxes paid
You must use 75% of the loan proceeds for eligible payroll expenses. You can use the remaining 25% of proceeds for non-payroll expenses such as rent, mortgage interest, utility payments, and interest on other debt incurred before February 15, 2020.
Loan Forgiveness: The loan forgiveness will equal the amount spent by the borrower in the eight-week period after the loan origination date on Eligible Purposes described above (not to exceed the original principal amount of the loan).
The amount forgiven will be reduced proportionally by any reduction in the number of employees retained as compared to the prior year. The proportional reduction in loan forgiveness also applies to reductions in the pay of any employee where the pay reduction exceeds 25 percent of the employee's prior year compensation. You will not be penalized by a reduction in the amount forgiven for termination of an employee made between February 15, 2020 and April 26, 2020, as long as the employee is rehired by June 30, 2020.
UFCU believes in a financially healthy community, and as of May 18, 2020 is proud to have helped 832 local businesses provide financial security for 3,579 employees, adding roughly $30 million of stimulus into our local communities.