Paycheck Protection Program Loan Application Update
We are no longer accepting PPP loan applications from first- or second-time borrowers.
If you have an application in process, please continue to monitor your email for updates. And if you’ve already received a PPP loan through Dupaco, you can learn more about applying for loan forgiveness here.
What is the PPP Loan?
The SBA created this loan program to help small- and mid-sized businesses maintain cash flow during this challenging financial time. The PPP is part of The CARES Act. The Economic Aid Act gave first-time PPP borrowers additional time to apply for funding and gave previous PPP borrowers an opportunity to apply for a second round of funding.
Local credit unions (like Dupaco) and banks wrote and approved the loans, which are fully backed by the SBA with support from the U.S. Department of the Treasury.
Who could apply?
Eligible applicants needed to be a Dupaco member as of May 4, 2021. Submitting an application did not guarantee loan approval. All applications were subject to review according to federal and Small Business Administration guidelines. Eligibility depended on whether members were considered a first- or second-draw borrower. Here’s what that means:
Members who didn’t receive a PPP loan before the program previously closed in August 2020 were considered a first draw borrower. Here’s who qualified:
- General businesses with 500 or fewer employees that are eligible for other SBA 7(a) loans.
- Sole proprietors, independent contractors and eligible self-employed individuals.
- Any business that averages less than 500 employees per physical location that has a NAICS code starting with 72 (accommodation and food services).
- Nonprofits, including churches.
- 501 (c)(6) and destination marketing organizations with 300 or fewer employees, including chambers of commerce, economic development and tourism.
- Certain news organizations.
- Housing cooperatives.
- Schedule F farmers and ranchers.
Second draw loans were for eligible borrowers who previously received PPP funding. These loans were intended for hardest hit borrowers with generally 300 or fewer employees. Businesses with multiple locations couldn’t have more than 300 employees per physical location.
All eligible borrowers listed under the first draw borrowers were eligible, even if they received their first-draw PPP loan in 2021, if the following criteria were met:
- Members who received their first PPP loan in 2021 needed to wait at least eight weeks from the time funds were received to apply for a second draw loan. This eight-week period is especially important if borrowers decided to apply for loan forgiveness.
- Borrower showed a 25% gross receipt decline in any quarter in 2020 compared to the same quarter in 2019. All quarterly comparisons must have appeared to be based on a calendar quarter (not a three-month period or fiscal quarter). Alternatively, if the borrower was in operation in all four quarters of 2019, total annual receipts in 2020 could be compared to annual receipts in 2019 rather than doing a quarter-by-quarter comparison.
Note: Economic Injury Disaster Loan and PPP forgiveness realized in 2020 shall be excluded from gross receipts in this comparison.
- For the above 25% reduction in gross receipts test, the borrower wasn’t in business during the first, second or third quarter of 2019 (Jan. 1–Sept. 30) but was in business during the fourth quarter of 2019 (Oct. 1–Dec. 31), the first, second or third quarter of 2020 (Jan. 1–Sept. 30) could be compared to the fourth quarter of 2019.
- If the entity was not in business during 2019 but was in business by Feb. 15, 2020, the gross receipts during the second or third quarter of 2020 (April 1–June 30) could be compared to the first quarter of 2020 (Jan. 1–March 30) to determine eligibility.
- The full amount of the initial PPP loan was used for authorized purposes on or before the expected date of the disbursement of the second draw PPP loan.
Important note about loans of $150,000 or less:
- For loans of $150,000 and below, members had to certify that they met the 25% gross receipts reduction at the time of application. But upon or before seeking loan forgiveness (or upon SBA request), borrowers needed to provide documentation that identified the 2020 quarter meeting this requirement, identified the reference quarter, stated the gross receipt amounts for both quarters, and supported the amounts provided.
The application process
Applications needed to be submitted with the following required documentation:
Step 1: Download, complete and save your PPP Loan Application
Borrowers needed to use the application that best fit their situation:
First Draw Borrower Application
Use this one if you didn’t receive a PPP loan before the previous funding round ended in August 2020.
First Draw Borrower Application (Schedule C Filer)
Use this one if you didn’t receive a PPP loan before the previous funding round ended in August 2020, and you’re applying using a schedule C.
Second Draw Borrower Application
Use this one if you received a PPP loan before the previous funding round ended in August 2020.
Second Draw Borrower Application (Schedule C Filer)
Use this one if you received a PPP loan before the previous funding round ended in August 2020, and you’re applying using a schedule C.
Step 2: Download, complete and save your PPP Loan Worksheet
Step 3: Gather and save copies of your supporting documents
Please click below to see which documents the SBA requires you to provide for your type of business.
- 941s for each quarter in 2019 or 2020 AND Payroll Register that shows YTD 2019 or 2020 payroll data such as gross wages, paid time off, vacation, state and local taxes assessed.
- Q1 941 – 2020 OR Payroll register that shows payroll amount and taxes paid that covers February 15, 2020 period.
- If applicable, documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan. Must include all employees and the company owners.
- If applicable, documentation showing the sum of all retirement plan funding that was paid by the company owner(s) (do not include funding that came from employees out of their paycheck deferrals).
- Include all employees and the company owners.
- Include 401K plans, Simple IRA, SEP IRAs.
Schedule C from their 2019 or 2020 tax return filed (or to be filed) showing income and expenses and net income/earnings from the sole proprietorship
2019 or 2020 payroll tax filings reported to the Internal Revenue Service. Individuals will also need to submit bank statements and copies of checks that show the wages paid on or around Feb. 15, 2020. If you are self-employed and do not pay wages to yourself, please apply as a Sole Proprietor and see documentation requirements under Sole Proprietorship.
Schedule C from their 2019 or 2020 tax return filed (or to be filed) as well as Form 1099-MISC from 2019 or 2020.
Can utilize Schedule F gross income instead of net income (either 2019 or 2020). First draw loans can be recalculated if new guidelines would result in a larger loan. This applies to PPP loans before, on or after the date of enactment unless the first draw loan is already forgiven.
We are no longer accepting PPP loan applications from first- or second-time borrowers. But if you have an application submitted, please continue to monitor your email for updates. Submitting your application does not guarantee you the loan, as the funds allocated by the Treasury are limited and may run out. As always, Dupaco is here to help and support you. If you’re concerned or experiencing financial hardship, please call us at 800-373-7600, ext. 0. We’re here to help you find solutions.
PPP Loan Forgiveness: Is it right for you?
If you received a Paycheck Protection Program Loan through Dupaco, you’ll need to decide whether to repay it or apply for loan forgiveness. Learn more about the forgiveness guidelines and what to expect during that process here.
Have questions? Need help?
You may find what you are looking for by viewing one of the below resources. Otherwise, give us a call at 800-373-7600.