01/14/21 UPDATE:
PPP Loan APplications - Round 2 Now open
121 Financial Credit Union is now accepting business member applications for the latest round of funding through the SBA Paycheck Protection Program (PPP). Please note: Currently, our program is only accepting applications from established 121 Financial business members.
If you are seeking PPP Forgiveness for a Round 1 or Round 2 loan, please log back into the site you applied on to create a new application. If you are unable to find the site, email business@121fcu.org and we'll send you the correct log-in link.
If you did not receive a PPP loan in 2020, you maybe eligible to apply for your first PPP loan in 2021.
If you did receive a PPP loan in 2020, you may be eligible to apply for the second PPP loan in 2021 if your business suffered a loss in revenue in 2020. Second draw applicants are required to demonstrate lost revenue of at least 25% year over year, which may limit the number of businesses that qualify.
A few key things to know:
- Submitting an application does not guarantee forgiveness of your loan, but we are working to ensure every member has a favorable outcome.
- Once you have applied, all correspondence should be conducted via the application portal, meaning you will need to log back in regularly to check your messages.
- Please DO NOT contact our Customer Care Center or business team directly for updates. Doing this slows the team as we process all of your applications.
Check out the updated 2021 PPP Loan Information and FAQs Below:
TABLE OF CONTENTS
- What Are the New Eligibility Requirements for the 2021 PPP Loan?
- What Will I need to Apply for the 2021 PPP Loan?
- How are PPP Loan Amounts Calculated?
- 2021 PPP Loan Calculator
- What can I use the PPP Loan for?
- How Long Will It Take to Receive My PPP Funds?
- PPP Loan Forgiveness
General Info About the PPP Loan Program
2nd Round PPP Loan Basics
- PPP loans have an interest rate of 1%.
- Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
What Are the New Eligibility Requirements for the 2021 PPP Loan?
A full list of eligibility requirements are outlined for applicants on the U.S. Treasury and SBA websites.
You are eligible for A First draw PPP loan if:
- Your business was operational before February 15, 2020
- Your business is still open and operational
- You have no more than 500 employees
- If your business has multiple locations, you have no more than 500 employees per location
- Your business is not a public company
More businesses are now eligible:
This time around, the SBA has increased eligibility for PPP loans. Some business types that were excluded from previous rounds of PPP are now eligible to receive funding. These include:
- News organizations
- Some hospitals owned by government entities
- Businesses that receive legal gaming revenue
- Electric, telephone, and housing cooperatives
- 501(c)(6) organizations and 501(c)(19) tax-exempt veterans organizations
- Tribal businesses
- Destination marketing organizations (if they meet applicable requirements)
- Certain faith-based organizations
There’s also a provision that may provide more relief for struggling restaurants: If you’re an accommodation or food service business that falls under a NAICS starting with “72” and has 500 or fewer employees per physical location, each location can apply for a a PPP loan.
You are eligible for A SECOND draw PPP loan if:
- You have used up your first PPP loan
- Your business was operational before February 15, 2020
- Your business is still open and operational
- You have no more than 300 employees
- If your business has multiple locations, you have no more than 300 employees per location
- You can show a 25% or greater reduction in gross revenue
A reduction in revenue can be shown by:
- Comparing your annual gross revenue as reported on your tax return between 2020 and 2019
- Comparing your gross revenue in any quarter in 2020 with your gross revenue in the same quarter of 2019
What Will I need to Apply for the 2021 PPP Loan?
We encourage you to be prepared and gather important documents prior to starting your application.
For the most up to date details about these requirements, you can visit the SBA’s website.
Materials needed may include:
- 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
- Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
-
- Gross wages for each employee, including officer(s) if paid W-2 wages
- Paid time off for each employee
- Vacation pay for each employee
- Family medical leave pay for each employee
- State and local taxes assessed on an employee’s compensation
- 1099s for independent contractors for 2019
- Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan. Include all employees and the company owners
- Document the sum of all retirement plan funding that was paid by the company owner(s) (do not include funding that came from employees out of their paycheck deferrals).
- Include all employees and the company owners
- Include 401K plans, Simple IRA, SEP IRA’s
NOTE: No additional documentation will be required for second draw loans if the applicant used the full calendar year 2019 for the first draw and the second draw loan lender is the same as the first draw. Whomever you choose as your lender may require additional documentation.
How are PPP Loan Amounts Calculated?
PPP loans are calculated based on 2.5 times your business' (or organization’s) monthly payroll costs. If you own a restaurant, hotel, or live venue that falls under a NAICS code starting with “72,” you can apply for 3.5 times your monthly payroll costs for your Second Draw.
Payroll costs that are included in the 2021 PPP calculations are:
- Compensation: Salary, wages, commission/similar compensation, cash tips/equivalent are all included here
- Paid time off: Vacation pay and parental, family, medical, or sick leave
- Allowance for dismissal or separation
- Healthcare costs: payments required for group healthcare benefits, including insurance premiums
- Retirement benefit payments
- State and local taxes associated with the compensation of employees
- For an independent contractor or sole proprietor: wages, commissions, income or net earnings from self-employment or similar compensation, capped at $100,000 on an annualized basis
- Payroll costs must be paid to employees whose principal place of residence is in the United States
New and seasonal businesses also have the option of using these payroll costs instead:
- Businesses that opened in 2020. Add up monthly payroll costs between January 1, 2020 and February 29, 2020.
- Seasonal businesses. Add up the payroll costs between either February 15 or March 1, 2019 and June 30, 2019. The start date is up to you, the business owner.
What’s Not Included in SBA PPP Loan Calculations
The following are excluded from PPP calculations:
- Annual employee or owner compensation over $100,000 ($8,333/month)
- Taxes imposed or withheld under Chapters 21, 22, and 24 of the IRS Code
- Employee compensation for individuals whose principal place of residence is outside the US
- Qualified sick and family leave for which you can receive a credit under the Families First Coronavirus Response Act
- Federal payroll, income, or railroad retirement taxes
- Payments made to independent contractors your company hired
- Owner distributions and shareholder draws
2021 PPP Loan Calculator
This calculator may be used for an estimation on the funds you may be qualified for through the PPP Loan — but does not determine your actual eligibility.
What are The PPP Loan Maximums?
$2 million is the maximum amount you can receive for a Second Draw. Also, the aggregate total amount any borrower can receive from a First Draw and Second Draw PPP loan is $10 million. The aggregate total amount that businesses within a corporate group can receive is $20 million.
What can I use the PPP Loan for?
First and second-draw funds are forgivable, provided they are spent on covered costs, including:
- Payroll costs, including paid sick leave and group insurance benefits provided by the employer. Payroll costs are capped at an annual rate of $100,000 for each employee.
- Operating costs, including payments for mortgage, rent, utilities, software, and human resources and accounting needs.
- Property damage sustained during protests and disturbances in 2020, unless covered by insurance.
- Payments to a supplier covering contracts and purchase orders in effect before taking out the second-draw loan.
- Personal protective equipment and modification made to meet health and safety requirements.
How Long will it take to receive PPP Funds If I’m approved?
Once a borrower receives a Preferred Lender Program (PLP) number for their loan, the loan is approved by the SBA, and funds are reserved for the borrower. Starting on the date a borrower receives a PLP number, the lender has 10 calendar days to disburse funds. The loan must be disbursed in full, and the 24-week loan forgiveness period begins the day funds are disbursed.
If a lender cannot disburse funds due to delays from a borrower, like missing paperwork, the lender has 20 days to disburse funds. If they haven’t received the necessary information from the borrower by the end of that 20-day period, the loan will be canceled.
PPP Loan Forgiveness
Loan funds can be forgiven if they are used on covered costs within 8 to 24 weeks of receiving your loan. The exact time frame is determined when you apply for your loan. In the event your loan is fully forgiven and paid in full within that time, you will not be responsible for loan payments.
At least 60% of the total second-draw loan must be used on payroll expenses to qualify for full loan forgiveness. Up to 40% can be used on other covered expenses detailed above.
After forgiveness has been determined, the remaining balance must be paid in full with interest at 1.00% by the maturity date of your loan.
121FCU's Business Member Support Efforts
As previously communicated, 121 Financial has taken steps to help our business members and implemented our own deferments,. Please read carefully, as some require action on your part:
- 90-day deferment on all commercial loans, excluding interest-only and lines of credit. This is not automatic. Please email rwallace@121fcu.org to start this process.
- 60-day deferment on all business credit cards. This is automatic and you do not need to do anything. Interest will still accrue.
- Please remember that all automatic and transfer payments will continue unless you cancel or change them yourself.
Be sure to bookmark https://121fcu.org/business/covid for regular updates and information on our Coronavirus response.
Additional Information & Resources
Our Governor has approved different loans for small business to help during this time please see below a few options we have found at this time: (Please note these are not credit union funded or the only options available)
- Small business owners with two to 100 employees located in Florida affected by COVID-19 can apply for short-term loans $50,000 and up to $100,000 on certain cases. These loans are interest-free for up to one year and are designed to bridge the gap to either federal SBA loans or commercially available loans. The DEO will work with every borrower to ensure that repayment of the loan isn’t an overwhelming burden. To be eligible, a business must have been established prior to March 9, 2020 and demonstrate economic impacts as a result of COVID-19. More information or to apply visit: https://floridadisasterloan.org/
- The SBA has options for higher loan request, longer terms (up to 30 years) and low interest rates. For more information or to apply visit: https://www.sba.gov
Change Orders for Business Members will be available via the commercial lanes located at our Mandarin, Middleburg, and Orange Park branches.
To request a change order, please email changeorder@121fcu.org . Most change orders will be fulfilled within a 24-hour period, if funds are readily available at requested branch. Fulfillment time may increase if monies are not available at the requested location.
We Want to Help You Any Way We Can
If there is something we can share on social media or another way, please let us know. Some ideas we have talked about is offering some of the deals for gift cards, savings, etc, similar to the holidays, but do it now. Our community wants to support our small businesses and we will share this information any way we can.
We have also started sharing this information on our website and social media, we promise to be your partner always, and especially in times like this. Check out our Facebook page.
Please visit https://121fcu.org/covid for all of our credit union updates related to the Coronavirus outbreak.
Please don't hesitate to reach out to our Business Services team at business@121fcu.org and 904-723-6330.
We will update this page with more information as it becomes available.