SBA Paycheck Protection Program – PPP 2021
Directions Credit Union remains committed to supporting our business members as the pandemic's effects continue into 2021. Our Business Lending team is here to help through these difficult times.
On December 27th, 2020, Congress signed into law legislation that has provided additional funds to support small businesses through the revitalization of the SBA Paycheck Protection Program (PPP 2021).
What is PPP 2021?
Key attributes of the PPP 2021 program are as follows:
- First-time borrowers. In general, borrowers can have no more than 500 employees, and their business must have been in operation as of February 15th, 2020. The first loan can be up to 2.5 times the business' average monthly payroll costs, up to a $10 million loan maximum.
- Second-time borrowers. Businesses can apply for a second PPP loan if they received an initial PPP loan and have spent or expect to spend the full amount of their first PPP loan before receiving funding for the second loan. In general, borrowers can have no more than 300 employees. The second loan can be up to 2.5 times the business' average monthly payroll costs, up to a $2 million loan maximum.
- Accommodations and Food Services companies with NAICS code 72 can borrow up to 3.5 times the business' average monthly payroll costs, up to a $2 million loan maximum.
- All businesses applying for a second PPP loan must show that their business revenue declined by at least 25% in any quarter in 2020 compared to the same quarter in 2019.
- Businesses can apply for a second loan whether or not they have requested forgiveness.
- These highlights will apply to many borrowers, but there are some exceptions. For full program details, visit SBA.gov and Treasury.gov.
When Can I apply?
The U.S. Small Business Administration, in consultation with the U.S. Treasury Department, will re-open the Paycheck Protection Program (PPP) loan portal to PPP-eligible lenders with $1 billion or less in assets for First and Second Draw applications on Friday, January 15th, 2021, at 9 am ET. The portal will fully open on Tuesday, January 19th, 2021, to all participating PPP lenders to submit First and Second Draw loan applications to the SBA. Directions Credit Union will begin to accept PPP loan applications on Tuesday, January 19th, 2021, for business members with an established DCU business membership as of September 30th, 2020.
How Can I apply?
All applications must be submitted through our SBA PPP portal. Applicants must be accessible via email.
1. Please review the Directions Credit Union PPP Loan Checklist of required documentation.
2. First Draw borrowers, please complete SBA Application Form 2483 (1/21).
Second Draw borrowers, please complete SBA Application Form 2483-SD (1/21).
3. Once you have your completed application and supporting documents prepared, please click on the link below to our SBA Directions email, attach the application and all supporting documents, and hit send.
How Do I Apply for Forgiveness?
At this time, Directions Credit Union has paused our loan forgiveness process as we await additional guidance from the SBA on a more streamlined process. Once this guidance is made available, we will provide additional updates.
Click HERE for more information on First Draw PPP loans.
Click HERE for more information on Second Draw PPP loans.
Click HERE for more information on PPP Loan Forgiveness.
Click HERE for more information on the SBA Coronavirus Relief options.