Business Loan Programs
Small Business Administration’s (SBA) Paycheck Protection Program (PPP)
PPP provides loans to help businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. SBA is currently accepting PPP loan applications from participating community financial institutions (CFIs) and lenders with under $1 billion in assets.
The program is open for Coast Central Credit Union Members as of Tuesday, January 19.
Start your application now by clicking HERE for our short PPP Questionnaire.
SBA is offering:
- First Draw Loans for first-time program participants
- Second Draw Loans for certain businesses who have previously received a PPP loan
A borrower is generally eligible for a Second Draw PPP Loan if they:
- ✓ Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses and
- ✓ Has no more than 300 employees; and
- ✓ Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
Note: First draw loans do not have to be paid off/forgiven to apply for the second round.
Additional Key Information from the SBA
Additional resource published by the US Chamber of Commerce: Coronavirus Emergency Loans Small Business Guide and Checklist
PPP Loan Forgiveness
US Chamber of Commerce: Guide to PPP Loan Forgiveness
First Draw PPP Loan Forgiveness terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 % of the proceeds are spent on payroll costs
Second Draw PPP Loan Forgiveness terms
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8 to 24 week covered period following loan disbursement:
- Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan and
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 % of the proceeds are spent on payroll costs
How and when to apply for Loan Forgiveness
A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
Click here for the SBA’s Frequently Asked Questions
Forgiveness forms and instructions
- SBA Form 3508 PPP Loan Forgiveness Application (updated 01-19-21)
- SBA Form 3508EZ PPP Loan Forgiveness Application (updated 01-19-21)
- SBA Form 3508S PPP Forgiveness Application (updated 01-19-21)
- Loan Forgiveness Requirements and Loan Review Procedures as Amended by Economic Aid Act
Skip-a-Payment
This offer allows existing business loan borrowers directly impacted the ability to skip up to TWO consecutive payments by completing the application and stating the reason related to COVID-19. No specific verification or proof is required.
Please submit completed applications to businessloans@coastccu.org. For questions, call us at (707) 445-8801 x620.
Additional Resources
North Coast Small Business Development Center
- PPP and other available funding support
- Access to available grants for relief
- Financial guidance and support
