Funds for the Paycheck Protection Program (PPP) have now been exhausted. Portal is closed to new applications.
January 15, 2021
Ukrainian FCU is an approved SBA lender and is participating in the Paycheck Protection Program once again in order to provide support to its members during this challenging time.
The Paycheck Protection Program was reauthorized by Congress late in 2020. The Small Business Administration (SBA) just issued Interim Final Rules (IFRs) and indicated that it will start accepting applications from authorized lenders who have approved customer applications for the forgivable loans beginning January 15, 2021 at 9am ET.
- Must be an existing UFCU member in order to be considered. If not, person must establish membership first.
If you took a first draw PPP loan via SmartLenders, you’ll be able to apply for a second PPP loan through the borrower portal. When you login to the portal, you will have the option to continue the forgiveness process for your 1st draw PPP loan and to apply for a 2nd Draw PPP loan.
Things to know in advance of applying for 1st Draw PPP Forgiveness:
- If you have a Paycheck Protection Program (PPP) loan and have not yet applied for forgiveness, you may want to wait. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (what we’re calling “PPP 2.0”) added some additional categories of expenses for which loan recipients may use their PPP loan proceeds and receive forgiveness, which in some cases, could increase their maximum borrowing and forgiveness limits. New eligible expense items under these new rules include:
- Cloud-computing or work-from-home expenditures.
- Property damage caused by civil unrest in 2020 that was not covered by insurance.
- Certain supplier costs for perishable or other goods purchased under a written agreement.
- Worker protection expenses, including PPE.
- Certain additional employee group benefit premium payments.
- The Act also provides for a simplified loan forgiveness process for PPP loans of up to $150,000. Specifically, applicable borrowers will be eligible for loan forgiveness if the borrower signs and submits a one-page certification to the lender (a) describing the number of employees the borrower was able to retain because of the PPP loan, the estimated amount spent on eligible payroll costs and total PPP loan value and (b) attesting that it accurately provided the required certification and complied with applicable PPP requirements.
- The form of the above-described certification is expected to be available by January 20, 2021. Once this form is available, the portal will be updated to support this simplified forgiveness process. If you have not yet applied for forgiveness, you may want to wait until this form is available to facilitate the simplified forgiveness process.
Things to know in advance of applying for a 2nd Draw PPP Loan:
- Second draw PPP loans are available for companies that have fewer than 300 employees and have seen a 25% reduction in revenues since their first PPP loan.
- You must use the full amount of your first PPP loan on or before the expected date your second PPP loan is disbursed.
- If you’re seeking a loan of $150,000 or more, you’ll need to provide documentation (e.g., tax forms, financial statements, bank statements) to prove revenue reduction of 25% or more. For loans less than $150,000, you’ll just need to provide this information to receive loan forgiveness.