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.
The loan may only be used for:
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.
Park Community was established in 1965 to serve the employees of General Electric’s Appliance Park in Louisville, Kentucky. While the members we are able to serve have changed over the years, our mission to provide exceptional service and a full range of financial products has not. Our philosophy continues to focus on the credit union motto of “people helping people” as we STRIVE (Serve you, Thank you, Respect you, Inform you, Value your time, Exceed your expectations) to be a full-service financial institution where it’s always your life, your money, and your way. Please be aware that you may be reached out to from representatives from our partner, Lendio. They will be assisting with gathering PPP applications and the required supporting documentation. If you have questions, please let us know!