121 FCU Blog

COVID-19 Info Center for Business Members


Important Info about PPP Loan Forgiveness - Starting Aug. 14th

This short video walks you through the PPP Loan Forgiveness process. Please pay close attention and follow the steps outlined in the video.
We are beginning the forgiveness process on August 14th. You will need to log back into your original application to start/continue this process.
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General Info About the PPP Loan Program

If you are looking for general information about the PPP loan program, we have created this page to help you learn more.

The programs and initiatives in the Coronavirus Aid, Relief, and Economic Security (CARES) Act was just passed by Congress. According to the latest information provided in the CARES Act:

The program would provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven, which would help workers remain employed, as well as help affected small businesses and our economy snap-back quicker after the crisis. PPP has a host of attractive features, such as forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses and other eligible entities will be able to apply if they were harmed by COVID-19 between February 15, 2020 and June 30, 2020. This program would be retroactive to February 15, 2020, in order to help bring workers who may have already been laid off back onto payrolls. Loans are available through June 30, 2020.

We encourage you to be prepared and gather important documents prior to starting your application. 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


Paycheck Protection Program (PPP) Loans FAQ's 


The following FAQ's were provided by the U.S. Senate Committee on Small Business & Entrepreneurship Ranking Member, Senator Ben Cardin.

What types of businesses and entities are eligible for a PPP loan?

  • Businesses and entities must have been in operation on February 15, 2020.
  • Small business concerns, as well as any business concern, a 501(c)(3) nonprofit organization, a 501(c)(19) veterans organization, or Tribal business concern described in section 31(b)(2)(C) that has fewer than 500 employees, or the applicable size standard in number of employees for the North American Industry Classification System (NAICS) industry as provided by SBA, if higher.
  • Individuals who operate a sole proprietorship or as an independent contractor and eligible self-employed individuals.
  • Any business concern that employs not more than 500 employees per physical location of the business concern and that is assigned a NAICS code beginning with 72, for which the affiliation rules are waived.
  • Affiliation rules are also waived for any business concern operating as a franchise that is assigned a franchise identifier code by the Administration, and company that receives funding through a Small Business Investment Company.

What are affiliation rules?

Affiliation rules become important when SBA is deciding whether a business’s affiliations preclude them from being considered “small.” Generally, affiliation exists when one business controls or has the power to control another or when a third party (or parties) controls or has the power to control both businesses. Please see this resource for more on these rules and how they can impact your business’s eligibility.

What types of non-profits are eligible?


In general, 501(c)(3) and 501(c)(19) non-profits with 500 employees or fewer as most non- profit SBA size standards are based on revenue, not employee number.

How is the loan size determined?

Depending on your business’s situation, the loan size will be calculated in different ways (see below). The maximum loan size is always $10 million.

  • If you were in business February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs during that time period. If your business employs seasonal workers, you can opt to choose March 1, 2019 as your time period start date.

  • If you were not in business between February 15, 2019 – June 30, 2019: Your max loan is equal to 250 percent of your average monthly payroll costs between January 1, 2020 and February 29, 2020.

  • If you took out an Economic Injury Disaster Loan (EIDL) between February 15, 2020 and June 30, 2020 and you want to refinance that loan into a PPP loan, you would add the outstanding loan amount to the payroll sum.

What costs are eligible for payroll?
  • 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
What costs are not eligible for payroll?
  • Employee/owner compensation over $100,000
  • Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
  • Compensation of employees whose principal place of residence is outside of the U.S.
  • Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act

What are allowable uses of loan proceeds?

  • Payroll costs (as noted above)
  • Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
  • Employee salaries, commissions, or similar compensations (see exclusions above)
  • Payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation)
  • Rent (including rent under a lease agreement)
  • Utilities
  • Interest on any other debt obligations that were incurred before the covered period

What are the loan term, interest rate, and fees?


For any amounts not forgiven, the maximum term is 10 years, the maximum interest rate is 4 percent, zero loan fees, zero prepayment fee (SBA will establish application fees caps for lenders that charge).
How is the forgiveness amount calculated?
Forgiveness on a covered loan is equal to the sum of the following payroll costs incurred during the covered 8 week period compared to the previous year or time period, proportionate to maintaining employees and wages (excluding compensation over $100,000):
  • Payroll costs plus any payment of interest on any covered mortgage obligation (not including any prepayment or payment of principal on a covered mortgage obligation) plus any payment on any covered rent obligation plus and any covered utility payment.
How do I get forgiveness on my PPP loan?

You must apply through your lender for forgiveness on your loan. In this application, you must include:

  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and State income, payroll and unemployment insurance filings.

  • Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities.

  • Certification from a representative of your business or organization that is authorized to certify that the documentation provided is true and that the amount that is being forgiven was used in accordance with the program’s guidelines for use.

  • What happens after the forgiveness period?

  • Any loan amounts not forgiven are carried forward as an ongoing loan with max terms of 10 years, at a maximum interest rate of 4%. Principal and interest will continue to be deferred, for a total of 6 months to a year after disbursement of the loan. The clock does not start again.

Can I get more than one PPP loan?


No, an entity is limited to one PPP loan. Each loan will be registered under a Taxpayer Identification Number at SBA to prevent multiple loans to the same entity.
How does the PPP loan coordinate with SBA’s existing loans? Borrowers may apply for PPP loans and other SBA financial assistance, including Economic Injury Disaster Loans (EIDLs), 7(a) loans, 504 loans, and microloans, and also receive investment capital from Small Business Investment Corporations (SBICs). However, you cannot use your PPP loan for the same purpose as your other SBA loan(s). For example, if you use your PPP to cover payroll for the 8-week covered period, you cannot use a different SBA loan product for payroll for those same costs in that period, although you could use it for payroll not during that period or for different workers.

How does the PPP loan work with the temporary Emergency Economic Injury Grants and the Small Business Debt Relief program?


Emergency Economic Injury Grant and Economic Injury Disaster Loan (EIDL) recipients and those who receive loan payment relief through the Small Business Debt Relief Program may apply for and take out a PPP loan as long as there is no duplication in the uses of funds. Refer to those sections for more information.



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)


  1. 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/

  2. 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.



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