121 Financial Credit Union is now accepting applications for the latest round of funding through the SBA Paycheck Protection Program (PPP).
If you need guidance, this short video walks you through how to use the application portal.
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.
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:
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.
For the most up to date details about these requirements, you can visit the SBA’s website.
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.
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:
The following are excluded from PPP calculations:
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.
$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.
First and second-draw funds are forgivable, provided they are spent on covered costs, including:
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.
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.
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:
Be sure to bookmark https://121fcu.org/business/covid for regular updates and information on our Coronavirus response.
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)
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 firstname.lastname@example.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.
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.