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Paycheck Protection Program Loan

U.S. Small Business Administration – Paycheck Protection Program

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the U.S. Treasury and Small Business Administration have recently implemented the Paycheck Protection Program in an effort to assist small business owners whose business operations have been adversely impacted by the COVID-19 pandemic crisis through a short-term loan relief program.

 

SRI Federal Credit Union is participating in the SBA’s Paycheck Protection Program and offering access to these funds, primarily to its existing business account members who hold a current business account and meet SBA eligibility requirements. If you do not have an SRI Federal Credit Union business account, please be aware that you will need to open an one with us. You can fill out a Business Account Application HERE. Once completed please send it to our Operations Manager - Amy Garcia. She will be glad to address any questions you may have and help guide you through the process. Once the account is open, a loan officer will be assigned to you for the PPP loan process.

How To Apply:

To apply for funding, please complete the Paycheck Protection Program – Borrower Application Form and provide the following additional information, required to underwrite your funding request (the program has been extended to 08/8/2020):

 

  1. 2019 IRS Quarterly 940, 941 or 944 payroll tax reports:
    • Payroll providers like ADPPaychex and Gusto already have a report setting available for PPP loans

 

  1. 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

 

  1. 1099s for independent contractors for 2019 (to be excluded from wages)

 

  1. Documentation showing a total of all health insurance premiums paid by the company owner(s) under a group health plan.
    • Include all employees and the company owners

 

  1. 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

 

Upon completion, please contact lending@srifcu.org and one of our associates will respond to you with a secure link to upload the above-referenced information.

Loan Details and Forgiveness

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% (as of 06/05/2020 the has been decreased to 60%) of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.  Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years (as of 06/05/2020 it has been expanded to 5 years) and an interest rate of 1%. Any balance remaining that is not forgiven by the government will be repaid during the remaining term.

Helpful links:

SBA PPP Loan Application

SBA PPP Loan Overview

SBA PPP Loan Fact Sheet (Borrower)

SBA Programs Under the CARES Act FAQ

Contact Us

Call: 800.986.3669
@SRI Extension 3711
Fax: 650.326.8916
333 Ravenswood Ave
Menlo Park, CA 94025-3493

Mailing Address:
P.O. Box 2284
Menlo Park, CA 94026-2284

Routing Number: 321173328

All deposits are insured by the NCUA to at least $250,000.

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