Paycheck Protection Program (PPP) – Now Available from Texell Credit Union
If your business is faced with financial challenges due to COVID-19, Texell Credit Union may be able to help with a Paycheck Protection Program (PPP) Loan. These loans are available as part of the Economic Aid Act. They provide assistance to qualifying small businesses. PPP is currently open to businesses with less than 300 or 500 employees, depending on the loan type.
These loans may be forgiven by the Small Business Administration (SBA).1 For information and other details on PPP Loans, click here for more information from the Small Business Administration (SBA).
Sole Proprietors and Contractors (those filing a Schedule C) will now use gross income in most circumstances, minus any employee expenses, and adding in wages they paid to their employees via W2. To help expedite the application process, please prepare documentation confirming your average monthly payroll expenses during 2019. Examples of eligible documentation include:
- Payroll processor records
- Payroll tax filings
- Form 1099-MISC
- Net income from 2019 Schedule C
- 1120-S form
- 1065 Form
- Schedule K-1, if applicable
- Maximum loan amount – 2.5 times eligible monthly payroll costs
- Loan payments will be deferred for up to ten months after covered period
- Loan may be forgiven if funds are used for qualified expenses. For guidelines on loan forgiveness, please visit the SBA website
- Any unforgiven portion will have a five-year term with an interest rate of 1%
- No personal guaranties, no collateral required and no prepayment fees
- No SBA fees to the borrower
Our team is here to help ease the strain on your small business.
1 Forgiveness subject to SBA approval.