Paycheck Protection Program Loan

Need COVID-19 relief? A Paycheck Protection Program loan can help.
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Benefits of an SBA-Backed Paycheck Protection Program Loan

Low Interest Rate

Just 1% APR for the entire life of your Paycheck Protection Program loan.

Loan Forgiveness

For qualified loan uses like payroll, mortgage interest, rent, and utilities.

Defer Payments

Payments deferred for the first 6 months. Interest will accrue during this time.

5-Year Term

Spread out payments over a five-year term to make your loan even more affordable.

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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.

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Is Your Small Business Eligible for the Program?

The CARES Act has expanded the eligibility criteria for borrowers to qualify for a Paycheck Protection Program loan. Small businesses with 500 or fewer employees whose principal place of residence is in the United States–including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors–are eligible. Businesses with more than 500 employees are eligible in certain industries.

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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
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What you need to apply:

The date you started your business

You need to have been in business on February 15, 2020

Documentation verifying your average monthly payroll costs

Payroll costs include salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee).

Employee benefits including costs for vacation, parental, family, medical, or sick leave; an allowance for separation or dismissal.

Payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit.

State and local taxes assessed on compensation.

For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each
employee.

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Business owners applying for COVID-19 loan

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.

Who can apply?

Small businesses with 500 or fewer employees whose principal place of residence is in the United States–including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors–are eligible. Businesses with more than 500 employees are eligible in certain industries.

Ready to get started?

Apply now to access the $349 billion in federal funding to help small businesses

keep workers employed amid the pandemic and economic downturn.

Get Started

Cascade Federal Credit Union is able to provide you with access to apply for a Paycheck Protection Program loan. While we are not an SBA lender and cannot fund the loan ourselves, your application will be matched with another lender that can. To check on the status of your application, please contact the Lender Customer Service Line at 833.572.0502 or by email at [email protected] You will also be able to log into this portal to check your loan status. - - ABOUT CASCADE FEDERAL CREDIT UNION - - Cascade FCU began in 1952 when a group of employees from the Cascade Division of the Great Northern Railway met to form a credit union to help them protect their money and get better loans for their families. Through railroad mergers, Burlington Northern Santa Fe was formed. In 1982, credit union regulations began allowing credit unions to serve additional employee groups. Since 1982, over 125 employee groups have joined Cascade FCU, allowing a wider range of members to enjoy the benefits of credit union membership. Through the years, the credit union has seen many changes, but the principles of those original members remain the same—we help members build their financial futures by always acting fairly and delivering superior personal service.