SBA Paycheck Protection Program (PPP)
The Paycheck Protection Program, part of the CARES Act, provides capital to small businesses impacted by Covid-19 to help meet short term operating expenses. As a SBA Preferred lender, Central Minnesota Credit Union is excited to provide access to this program to members and non-members.
- The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits.
- Funds can also be used to pay interest on mortgages, rent, and utilities
- Up to 100% of loan amount may be forgiven if program requirements are met
- Check if you're eligible to apply with CMCU by viewing membership eligibility here.
SBA PPP loans are serviced through Central Minnesota Credit Union. This means that all correspondence will be through Central Minnesota Credit Union, NOT SBA. Please be on alert for phishing attempts by fraudsters. There have been reports of applicants receiving fake correspondence from the SBA. If you have any questions regarding communications about your accounts, please contact CMCU directly.
Important PPP Information
Eligibility & Requirements
All businesses including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.
Documentation Needed to Apply:
- Paycheck Protection Program loan application – Apply online by clicking the button on this page.
- Payroll processor records, payroll tax filings (such as Form 941 or Form 944), or Form 1099-MISC.
- For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.
- Sole Proprietors or Independent Contractors: Schedule C or Schedule F from your 2019 income tax returns.
Interest Rate: 1.00%
Loan Term: 2 years
Loan Amount: Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
Loan Payments: All payments are deferred for 6 months; however, interest will continue to accrue over this period. There are no prepayment penalties or fees if you choose to pay off your loan earlier.
PPP Frequently Asked Questions
SBA 7(a) Program Loans
- Loan funds are available for almost any purpose, including working capital.
- For a limited time, SBA will pay six (6) monthly payments on new loans through the CARES Act.
- CMCU is a designated Preferred Lender through SBA.
*Membership qualification required. Other restrictions may apply. Ask for details.
2-Month Skip-A-Pay for Businesses
This is a loan deferment program for loans already at CMCU. Business members are allowed to defer 2 consecutive monthly loan payments.
- For members of CMCU with current loans paid monthly
- Loan payment is deferred for 2 consecutive months between April and September 2020
- No fees!
- Interest will continue to accrue during skipped months
- Does not apply to new loans or to be used for refinancing loans
- Please view the Amendment to Installment Loan Agreement when applying
*Membership qualification as of March 18, 2020 required. If you have loans with non-monthly payments (quarterly, semi-annual, annual or custom) and may need a deferral, please contact your CBO/CBA to discuss a payment modification options. Other restrictions may apply. Ask for details.
SBA's Economic Injury Disaster Loan Program (EIDL)
The loans are designed to assist businesses who suffered working capital losses due to the coronavirus pandemic. Proceeds can assist with making fixed debt payments, payroll, Accounts payable, lease payments, insurance etc.
Applications for the loans are made directly to SBA, not CMCU. Loan payments are also made directly to SBA. Learn more about the program by clicking here.
- $2,000,000 Maximum Loan Amount (Including affiliate entities)
- 3.75% APR (Non-Profit: 2.75% APR)
- Up to 30 year term - based on individual credit approval
- No payments for the first 11 months
- No collateral required for loans of $25,000 or less