The coronavirus pandemic is forcing small businesses to adapt. Dupaco is here to help. Use these resources to keep your business healthy.
Updated July 7, 2020, at 6:00 p.m. CT
If you’re trying to keep your small business running, know that you don’t have to go it alone. The Paycheck Protection Program was designed to help small businesses like yours keep workers on the payroll during the COVID-19 crisis.
Important update: Paycheck Protection Program reopened
You now have more time to apply for a PPP loan. The program’s application deadline was extended from June 30 to Aug. 8.
The program resumed July 6 after the president signed the program’s extension legislation.
Dupaco is now processing PPP loan applications again.
Here’s how the Paycheck Protection Program works
The heavily anticipated program is part of the CARES Act—helping small- and mid-sized businesses with cash flow during this time. The loans might be forgiven if funds are used to keep your employees on the payroll and for certain other expenses.
The $349 billion loan program is backed entirely by the government, but local credit unions (like Dupaco) and banks make and approve the loans.
Who can apply
All small businesses—including nonprofits, veterans organizations, Tribal business concerns, self-employed individuals, sole proprietorships and independent contractors—with 500 or fewer employees can apply.
Companies with more than 500 employees are eligible in certain industries. If your small business is in the hospitality and food industry with more than one location, it may also qualify if your individual sites employ less than 500 workers.
How to apply
Dupaco is still accepting Paycheck Protection Program loan applications. You must be a current Dupaco business member as of April 3, 2020, to apply with the credit union.
You can apply here.
Submitting your application does not guarantee you the loan. Your application is subject to review according to federal and SBA guidelines.
Please read through the application carefully to ensure you are submitting all of the requested documentation. Submitting incomplete information will delay funding and your ability to close on the loan.
How you can use the loan
The Paycheck Protection Program provides your small business with funds to pay up to eight weeks of payroll costs.
What counts as payroll costs?
- Salary, wages, commissions or tips
- Employee benefits: Costs for vacation, parental, family, medical or sick leave; allowance for separation or dismissal; payments required for group health care benefits, including insurance premiums; and payment of any retirement benefit
- State and local taxes assessed on compensation
- Sole proprietor and independent contractor costs: Wages, commissions, income or net earnings from self-employment
You can also use funds to pay:
- Interest on mortgage obligations incurred before Feb. 15, 2020
- Rent under lease agreements in force before Feb. 15, 2020
- Utilities if the service began before Feb. 15, 2020
How much you can borrow
You can borrow up to two months of your average monthly payroll costs from the last year, plus an additional 25% of that amount, with a $10 million cap.
Payroll costs will be capped at $100,000 annualized for each employee.
What your loan term looks like
The loan has a 1.00% fixed interest rate.
Your payments will be deferred for six months, but interest continues to accrue during this period.
You won’t be charged any fees from the government or your lender. And no collateral or personal guarantees are required.
How your loan is forgiven
Your loan might be forgiven, but it’s important to think carefully about what’s in your best interest—repaying the loan or applying for forgiveness.
Learn more about the forgiveness guidelines and what to expect if you choose to apply.