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Paycheck Protection Program
ACFCU is now accepting Paycheck Protection Program (PPP) applications from eligible self-employed individuals and businesses. Effective immediately, the SBA is now allowing new PPP applicants who are sole proprietors, Independent Contractors, and Self-Employed Individuals to use their IRS Form 1040 Schedule C Gross Income to calculate their eligible PPP loan amount.
The SBA has released new application forms that all borrowers must now use when applying for a PPP loan. Applications with instructions are in the PPP Resources section below. These forms are the most up-to-date drafts available from the SBA but may be subject to change. Applications should be emailed to business@xgcr.net1 and a member of our business lending team will follow up with you.
The deadline for PPP applications has been extended. Your applications must be submitted to ACFCU by 5:00pm Monday, May 24, 2021.
- Form 2483-C (First Draw, Schedule C Filers)
- Form 2483-SD-C (First Draw, Schedule C Filers)
- Form 2483 (First Draw – Revised)
- Form 2483 (Second Draw – Revised)
- Overview of PPP First Draw Loans
- Overview of PPP Second Draw Loans
- US Chamber of Commerce Guide to Small Business COVID-19 Emergency Loans
PPP Qualification & Application Information
Eligible self-employed individuals and businesses with 500 or fewer employees who did not previously receive a PPP loan may apply for a PPP loan (subject to all other applicable application requirements and program rules).
Previous recipients of PPP loans will be eligible for a second loan if, among other requirements, they:
- Have used the full amount of their first PPP loan for eligible purposes.
- Have 300 or fewer employees (second-time PPP borrowers with 300 or fewer employees will generally be eligible to borrow an amount equal to 2.5 times their average monthly payroll.)
- Have sustained a 25% revenue loss in any quarter of 2020 relative to the same quarter of 2019. This will need to be documented and verified with your application.
- Loans are limited to a maximum amount of $2,000,000.00.
ACFCU is asking applicants who already received a PPP loan in 2020 to take part in the forgiveness application process for that loan as they apply for a second PPP loan. This may help ensure forgiveness of both PPP loans by the SBA.
PPP Loan Forgiveness Update
If you have a PPP Loan with us for less than $150,000 funded in 2020 please check your email for the New Abbreviated Loan Forgiveness Application
If you have a first round PPP Loan that was funded in 2020 for an amount under $150,000, please complete the New Abbreviated Loan Forgiveness Application as soon as possible. You can access the form through our online Forgiveness Portal. If you never received a link to the Forgiveness Portal or have issues accessing it, please send an email to our team at business@xgcr.net1. If you have any questions, you are welcome to submit them to that email address.
When going through the portal, please keep in mind the following:
- You will need to upload your documentation on how you used the loan proceeds directly in the portal
- You do not need to complete and upload an actual Loan Forgiveness Application Form. After your application is reviewed and approved by ACFCU, then you will receive an email to complete and digitally sign an application that will be created by the system
- Your application will then be routed to the SBA for final approval and refund
Frequently Asked Questions
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What costs are eligible for forgiveness under the original PPP?
- Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
- Payment for vacation, parental, family, medical, or sick leave
- Allowance for dismissal or separation
- Payment required for the provisions of group health care benefits, including insurance premiums
- Payment of any retirement benefit
- Payment of State or local tax assessed on the compensation of employees
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What costs are not eligible for payroll in the original PPP?
- Employee/owner compensation over $100,000
- Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
- Compensation of employees whose principal place of residence is outside of the U.S.
- Qualified sick and family leave for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act.
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How much of my original PPP loan will be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utility payments over the eight weeks after getting the loan. No more than 40% of the forgiven amount may be for non-payroll costs.
You will also owe money if you do not maintain your staff and payroll.
- Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
- Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
- Re-Hiring: You have until December 31, 2020, to restore your full-time employment and salary levels for any changes made between February 15, 2020, and April 26, 2020.
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What happens if PPP Loan funds are misused?
If you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized use.
The Fine Print
Membership and eligibility requirements apply.
1Please do not submit your account number or social security number via email or contact form. Information sent is at risk of loss of confidentiality if the information is transmitted over the internet.