The Paycheck Protection Program
Congress adopted a bill to extend and expand the Paycheck Protection Program on December 21, 2020. Once this bill becomes law, Peach State FCU expects to begin accepting new applications from existing members for the PPP loan. The link below will allow you to start a new application or update information or add documents to existing applications is still active, if you have already made an application and have been asked to update it.
There is also a link below for information on the forgiveness opportunity for a PPP loan.
What is the Paycheck Protection Program?
The Paycheck Protection Program (PPP) is a U.S. Small Business Administration (SBA) federal loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Will I have to pay back this loan?
The loan may be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities and you have not reduced your payroll by more than defined amount. Please note: At least 60% of the forgiven amount must have been used for payroll. The period in which the PPP loan must be used to qualify for forgiveness is now the earlier of 24 weeks or the end of 2020.
The purpose of this loan/forgiveness is to enable and encourage small businesses to protect their employees. Loan payments will be deferred for six months, and no collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. 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.