Paycheck Protection Program Loan

We are not currently accepting new Paycheck Protection Program loan applications. If you applied on or before June 26, 2020, you can still sign in and check the status of your application.
COVID19 Open America
Check

What Is the Paycheck Protection Program?

Recently added as an SBA loan program, the Paycheck Protection Program provides federally-guaranteed loans to eligible small businesses. Loans are the lesser of $10 million and a calculated amount based on payroll and may be forgivable. Talk to your Lendio funding manager for more information on calculating your loan amount. These loans are intended to help small businesses retain employees throughout and after the Coronavirus (COVID-19) crisis.

As dictated by the CARES Act, the SBA has already committed and reserved $350 billion in forgivable loans to small business owners across America. Starting on Monday, April 27th, it began funding an additional $300+ billion in loans to small business owners who weren’t able to receive a loan from the initial pool of $350 billion.

Check

How Can You Use Your Paycheck Protection Program Loan?

The loan may only be used for:

  • Payroll costs and employee commissions or similar compensations
  • Insurance premiums and group healthcare benefits during paid sick, family, or medical leave
  • Mortgage interest payments (but not prepayment or payment of mortgage principal)
  • Commercial space rent and utilities
  • Interest on any other debt obligations incurred before January 31, 2020 and April 3, 2020
  • Refinancing SBA EIDL loan made between January 31, 2020 and April 3, 2020
pppPaused

How to earn loan forgiveness

You may be eligible to have all or a portion of the loan principal and interest forgiven if you use the funds for certain qualifying costs incurred and payments made for payroll, mortgage interest, rent and utilities during the first eight weeks following the date the loan is made. You will have to provide documentation.

Because the SBA expects a high number of applicants for PPP loans, no more than 40% of the forgiven amount can be for non-payroll costs (i.e., mortgage interest, rent, and utilities). If your business has laid off employees, that will also affect how much your loan can be forgiven. The total effect on your PPP loan’s forgiveness-eligibility depends on a calculation that your funding manager can walk you through to give you the specific answer for your business.

Women holding open sign in front of business

Ever wonder why nearly 40,000 people in St. Louis have chosen 1st Financial for their financial needs? It’s because we put people ahead of profits. As a member-owned, not-for-profit financial cooperative, we return profits to our members in the form of lower rates on loans and higher savings yields. By joining 1st Financial, you become a member for life, not just a customer. Even if you leave a select employee group, retire or move, you may always maintain your membership status as long as you maintain an account. Membership Requirements Today, 1st Financial is a full-service financial institution dedicated to helping our members achieve their financial dreams. We are able to serve anyone who lives, works (regularly does business in*), worships or attends school in the City of St. Louis, St. Louis County or St. Charles County.