Paycheck Protection Program (PPP)
If your business has been impacted by COVID19, NIHFCU Business Lending is standing by to discuss your options and offer solutions. The NIHFCU Paycheck Protection Program (PPP) may be able to help support your payroll and certain other expense requirements. Details of the program are outlined below.
>>> NOTE: Because initial funding was quickly exhausted, a 2nd phase will be begin on Monday, April 27, and will remain available until appropriated funding is exhausted. We do not expect availability to last more than a few days.
The PPP allows small businesses* to obtain funds for payroll and certain other expenses.
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. NOTE: If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped for employees that earn more than $100,000 annually.
The loan amount has a maturity date of 2 years and an interest rate of 1.00% APR**.
Loan payments will be deferred for 6 months.
No collateral is required.
No personal guarantees are required.
Neither the government nor lenders will charge small businesses any fees.
If the Business maintains their workforce, the SBA will forgive the loan proceeds that are used to cover the first 8 weeks of payroll. NOTE: The SBA will fully foregive the loan if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must have been used for payroll). 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.
Please also note, the following:
Minimum loan amount is $10,000.00
loans are not avaiable for 1099 contractors
Documentation Needed to Apply for PPP
We are committed to updating you as we learn more from the SBA. To help prepare for the application, we recommend that business owners begin to gather the following information and documents:
2019 IRS quarterly 940, 941 or 944 payroll tax reports
Last 12 months of Payroll Reports (e.g. gross wages for each employee, paid time off for each employee, vacation pay for each employee)
Documentation showing total health insurance premiums paid by the small business under a group health plan
Document the sum of all retirement plan funding paid by the small business (do not include funding that came from employee’s paycheck deferrals)
For Sole Proprietors, in addition to the above, submit income statement and balance sheet for the calendar year of 2019.
Organization documents to include: Articles of Incorporation, Operating Agreement
COVID-19 Action Plan detailing (a) how the small business is afflicted by COVID-19, (b) what means and methods is the business currently utilizing to conduct business, and (c) how is the business preparing itself for the resurgence once the COVID-19 situation is resolved.
How to Apply
If you ARE an existing NIHFCU business member, please begin preparing your application by downloading the PPP Loan Application and submit the completed form to businesslending@nihfcu.org.
If you ARE NOT yet an NIHFCU business member, please contact our Commercial Lending Team for membership eligibility and required forms to become a business member.
The SBA’s PPP will be available through June 30, 2020 or until the appropriated funding in the CARES Act is exhausted. The PPP is issued on a first-come, first-served basis. If you have any questions, please contact one of our Business Lending Team Members:
Expected Timeline for Application Process
Once we receive the signed application and all support documentation, processing of the loan is expected to be 24-48 hours.
Applications will be processed on a first-come, first-served basis, so please have all necessary support documentation accompanying the completed application.
Total estimated time is expected to be approximately 5 business days.
*Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, are eligible if they also meet program size standards.
**APR=Annual Percentage Rate. APR is effective as of 4/3/2020 and subject to change at any time.
