SBA PPP Loan Updates & Applications
The new Coronavirus relief and stimulus package signed on December 27, 2020 provides an additional $284 billion in Paycheck Protection Program (PPP) and the program has been extended to March 31, 2021 or until funding runs out. Follow these steps to apply for either a first-draw or second-draw PPP Loan.
Gather documents verifying:
- The business or non-profit was operating on February 15, 2020, and remains in operation
- The number of employees
- The average monthly payroll calculation
Examples: payroll records, W3s, IRS 940s or 941s, and tax returns
Second-draw applicants must demonstrate at least a 25% reduction in gross receipts in any quarter of 2020 relative to the same quarter in 2019 or annualized.
Email Your Application
FAQ's About the New PPP Loan
As part of the federal relief act, small businesses and non-profits may apply for funding from the SBA Paycheck Protection Program (PPP) through Clearwater Credit Union. Below is some helpful information to determine if this program is right for you and your business.
Businesses eligible for first-draw and second-draw PPP loans include:
- Sole proprietors
- Independent contractors
- Self-employed individuals
- Private nonprofit organizations or 501(c)(19)
- Veterans organizations
- Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations)
- Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period
- Faith-based organizations that have less than 150 employees
- Housing cooperatives that employ less than 300 people
Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients.
To be eligible for a first-draw PPP loan:
- Your business has less than 500 full-time, part-time, or seasonal employees.
- Your business was operational before February 15, 2020, and remains operational.
To be eligible for a second-draw PPP loan:
- Your business has less than 300 full-time, part-time, or seasonal employees; if you have multiple locations, you may not have more than 300 employees per location.
- You are able to demonstrate a revenue reduction of at least 25% in gross receipts in any quarter of 2020 relative to the same quarter in 2019 or annualized.
- You have used or will use the full amount of the first-draw PPP.
- Your business was operational before February 15, 2020, and remains operational
Yes. We will do everything we can to help both members and non-members understand and take advantage of this opportunity. But please be aware that in order for us to fund a loan the borrower has to open accounts and become a member of the credit union.
Small businesses and non-profits looking to join the credit union remotely should write to us at the following email address: [email protected]
To open a Business Account remotely, please email us your Articles of Organization, Articles of Incorporation, or Assumed Business Name registration information, and your EIN.
Also, this is a “first come, first served” funding opportunity offered through the SBA. We cannot guarantee that funds will be available to all applicants.
First-draw PPP loan limitations: The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:
- The maximum loan size will be 2.5 times the “Average Monthly Payroll” of the applicant.
- For purposes of calculating “Average Monthly Payroll,” most Applicants will use the average monthly payroll for 2019, excluding salaries over $100,000 on an annualized basis.
- $10 million maximum loan size
Second-draw PPP loan limitations: Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:
- 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
- 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS).
- $2 million maximum loan size
- Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent).
- Payment for vacation, parental, family, medical, or sick leave.
- Allowance for dismissal or separation.
- Payment required for the provisions of group health care benefits, including insurance premiums.
- Payment of any retirement benefit.
- Payment of State or local tax assessed on the compensation of employees.
- A completed SBA PPP First-Draw Application or a completed SBA PPP Second-Draw Application
- Documentation to verify the “Average Monthly Payroll” calculation. That is, payroll records, company Profit and Loss Statement, and tax forms (for example payroll records, W3s, IRS 940s or 941s, and tax returns)
- The interest rate on the PPP loans is currently 1%.
- The maximum term will be 60 months (5 years).
- There is no origination fee charged to Applicants.
Yes, it is possible to get loan forgiveness providing applicants meet the criteria set by the SBA.
Applicants are strongly encouraged to review the SBA’s rules on forgiveness. To learn more about how to qualify for loan forgiveness, visit the SBA Payroll Protection Program website.
The new relief act has expanded list of expenses that qualify for loan forgiveness.
The CAA adds the following expenses to the list of qualifying expenses that can result in PPP loan forgiveness. This expanded list is generally retroactive to Day One of the original PPP.
- Eligible operations expenditures, which include payments for software, cloud computing, and human resource and accounting needs.
- Eligible uninsured property damage costs resulting from public disturbances that occurred in 2020.
- Eligible supplier costs.
- Eligible expenditures for worker personal protective equipment (PPE) and eligible expenditures to help the borrower comply with COVID-19 federal health and safety guidelines or equivalent state and local guidelines issued between 3/1/20 and the end of the national COVID-19 emergency declaration (whenever that happens).
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