In response to the COVID-19 pandemic, the Paycheck Protection Program (PPP) was established by the CARES Act and is implemented by the Small Business Administration (SBA) with support from the Department of the Treasury.
The Paycheck Protection Program (PPP) provides small businesses with funds that can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. All or part of each PPP loan may be forgiven if certain criteria are met.
What Are The Terms Of A PPP Loan?
The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
- PPP loans are 60-month terms and have an interest rate of 1.00%.
- Loan payments will be deferred for borrowers who apply for loan forgiveness until SBA remits the borrower's loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
- No collateral or personal guarantees are required.
- Neither the government nor lenders will charge small businesses any fees.
How Much Can I Borrow?
The maximum for second-draw loans is $2 million. Loan amounts will be based on an applicant's payroll, consistent with the program's first iteration. Second-time PPP borrowers will be eligible to borrow an amount equal to 2½ times their average monthly payroll costs.
Applicants in the accommodation and food services industries, as designated by the Small Business Administration, are eligible for loans that amount to 3½ times their average monthly 2019 or 2020 payroll costs up to $2 million.
Am I Eligible To Apply?
Members and non-members in Florida are welcome to apply for PPP loans with Orlando Credit Union. Please note: As part of the loan process, non-members will be required to qualify for membership and open an ownership share account.
Who Can Apply For PPP First Draw Loan?
Businesses who have not yet received a PPP Loan and meet the eligibility requirements.
- Business entities (e.g., partnerships, corporations, LLCs)
- Sole proprietors, independent contractors, self-employed individuals
- 501(c)(19) Veterans organization
- Tribal business, and
- Housing cooperative, destination marketing organizations, and eligible news organizations.
Must comply with size standards, eligibility criteria, and certain limitations.
Also eligible to apply for First Draw PPP Loans are businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees.
Who Can Apply For PPP Second Draw Loan?
Businesses that received a PPP Loan may be eligible for a second draw. A borrower is generally eligible for a PPP Second Draw Loan if the borrower:
- Was eligible for and previously received a PPP First Draw Loan;
- Has or will use the full loan amount only for eligible expenses before the PPP Second Draw Loan is disbursed;
- Has no more than 300 employees; and
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
What Is The Process?
- Step 1: Businesses, both member and non-member businesses, must create an account and complete application using the application button above.
- Step 2: Applications will be reviewed to ensure completeness. If incomplete, Orlando Credit Union will reach out to request additional information.
- Step 3: Loan decisions will be forwarded to businesses. For non-member businesses, a Business Member Application will be required.
- The form is included for your convenience. Please do not send via email, as it includes sensitive information.
- Step 4: Businesses will be required to sign loan and account documents.
- Step 5: PPP Loan will be funded.
How To Apply?
UPDATE: Effective Wednesday, February 24, 2021, and for the next 2 weeks, only businesses with fewer than 20 employees can claim pandemic relief loans.
To submit using our easy online application, click on the Apply Now button.
— OR —
If you prefer to fill out the application offline, you can download the first and second draw applications below. Once downloaded, please fill out the form, print and sign it, and then visit one of our branches to submit.
What Are PPP Forgiveness Terms?
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
- Employee and compensation levels are maintained;
- The loan proceeds are spent on payroll costs and other eligible expenses; and
- At least 60 percent of the proceeds are spent on payroll costs.
Please be aware that Orlando Credit Union cannot guarantee any particular outcome of the forgiveness process and cannot provide any assurances or representations that forgiveness will be granted by the SBA.
Where Can I Learn More?
You can learn more about the PPP loan program at the following links.
Small Business Administration
How to Calculate Loan Amounts
U.S. Treasury Interim Final Rule
Revisions to U.S. Treasury Interim Final Rule
U.S. Treasury PPP FAQs
Additional U.S. Treasury Resources
U.S. Chamber Guide
PPP Loan Coverage Periods
Please email your specific questions to [email protected], so that we can forward to the appropriate team members to provide answers as quickly as possible.
Information updated as of January 14, 2021. Terms and rules subject to change.