SBA Paycheck Protection Program

SBA PPP Loan Program

Effective Friday, January 15th, Vermont Federal Credit Union will be able to resume processing PPP loans, for both first-time applicants and second draw borrowers.

How to Apply

Vermont Federal is currently accepting applications and supporting documentation through our secure Online Application process which can be found here:

Online Application

 

Additional Resources from the SBA:

Calculate Maximum Loan Amounts For First Draw By Business Type

Calculate Maximum Loan Amounts For Second Draw By Business Type

SBA Overview of First-Time PPP Loans

SBA Overview of Second Draw PPP Loans

Visit the SBA Website

 

New PPP Funding

More than $284 billion has been allocated to the SBA for first and second PPP forgivable small business loans and the program will be extended to March 31, 2021.
Below is the current criteria for first-time applicants:
  • Businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans
  • Sole proprietors, independent contractors, and eligible self-employed individuals
  • Not-for-profits, including churches
  • Accommodation and food services operations (those with North American Industry Classification System (NAICS) codes starting with 72) with fewer than 300 employees per physical location

Second PPP Loan Eligibility

New in this round of funding will be the ability to apply for a second PPP loan of up to $2MM based on the following conditions:
  • Have 300 or fewer employees
  • Have used or will use the full amount of the first PPP loan
  • Can demonstrate a 25% gross revenue decline in any 2020 quarter compared to the same quarter in 2019
    • For purposes of the above 25% reduction in gross receipts test, borrowers who were not in business during the first, second, or third quarter of 2019 (January 1 - September 30), but were in business during the fourth quarter of 2019 (October 1 - December 31), can compare the first, second, or third quarter of 2020 (January 1 - September 30) to the fourth quarter of 2019.  
    • If the entity was not in business during 2019 but was in business by February 15, 2020, then such borrower can compare their gross receipts during the second or third quarter of 2020 (April 1 - June 30) to the first quarter of 2020 (January 1 - March 30) to see if they qualify.

Eligible Use of Funds

Regarding eligible expenses for loan forgiveness in the next round of PPP funding, payroll, rent, covered mortgage interest, and utilities still apply, however, the updated regulations also make the following potentially forgivable: 
  • Covered worker protection and facility modification expenditures, including personal protective equipment, to comply with COVID-19 federal health and safety guidelines. 
  • Expenditures to suppliers that are essential at the time of purchase to the recipient’s current operations. 
  • Covered operating costs such as software and cloud computing services and accounting needs.

To be eligible for full loan forgiveness, PPP borrowers will have to spend no less than 60% of the funds on payroll over a covered period which can range from 8-24 weeks. PPP borrowers may receive a loan amount of up to 2.5 times their average monthly payroll costs in the year prior to the loan or the calendar year, with a maximum loan amount of $2 Million. PPP borrowers with NAICS codes starting with 72 (hotels and restaurants) can get up to 3.5 times their average monthly payroll costs, again subject to a $2 million maximum.

Loan Forgiveness

 

Included in the relief bill are several changes to the forgiveness process, including the following:
  • Simplified forgiveness process to be implemented for all PPP loans $150,000 and less. We await further guidance from the SBA concerning the process and updated forms required. As soon as we have received this information, we will provide this information to our members.
  • EIDL advances will no longer be deducted from PPP loan forgiveness amounts.  For businesses that have already had their EIDL advance deducted, the SBA will provide reimbursement. When additional information concerning the specific process for this have been updated we will share it.

The current PPP Loan Forgiveness Application is still open. Below is a link to our secure online PPP forgiveness application, when you are ready to apply:

🔒 Online PPP Loan Forgiveness Application

Once there you will be directed to request a link for your unique Loan Forgiveness Application. For security purposes, you will need the following information to begin the PPP Forgiveness questionnaire:

  • Email address, exactly as used on your Borrower PPP Application Form (SBA Form 2483)
  • SBA Loan Number and
  • Business TIN (EIN/SSN).

If you have any difficulty locating this information, please contact us at BusinessServices@vermontfederal.org, and we would be happy to assist. Upon submission, you will be provided with information to allow you to log in anytime to check the status of your application. Once we have received a completed forgiveness package, the Credit Union will have 60 days to review the application and issue a decision on loan forgiveness. We will be in touch throughout the process with any questions as well as to communicate the final forgiveness amount.

For More Information: