SBA Paycheck Protection Program

SMALL BUSINESS PAYCHECK PROTECTION PROGRAM LOAN* OFFERED BY GECU

At GECU, we put the people helping people philosophy at the core of everything that we do and we recognize that small businesses are the heartbeat of our economy. We are here to help our small business members by reopening the Small Business Administration Paycheck Protection Program.

To be eligible for the program the business member must …

  • Complete the Small Business Administration Paycheck Protection Program First Draw or Second Draw loan application with the required documentation by May 31, 2021
  • Be a GECU business member before applying

Beginning on Monday, January 11, 2021, business members can apply for a SBA PPP First Draw loan (new loans) by clicking here, or by calling the GECU Small Business Relief line at 915.774.1889.

Beginning on Wednesday, January 13, 2021, business members can apply for a SBA PPP Second Draw loan by clicking here, or by calling the GECU Small Business Relief line at 915.774.1889.

FIRST DRAW

Full 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

Targeted Eligibility

  • Sole proprietors, independent contractors and self-employed persons
  • Any small business concern that meets SBA’s size standards (either the industry size standard or the alternative size standard)
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or tribal business concern [sec. 31(b)(2)(C) of the Small Business Act] with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500 employees
  • Any business with a NAICS code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location

If you did not receive loan forgiveness by December 27, 2020, you may 1) reapply for a First Draw PPP Loan if you had previously returned some or all of the First Draw PPP Loan funds; or 2) under certain circumstances, if you requested to modify your First Draw PPP Loan amount and did not accept the full amount for which you are eligible.

SECOND DRAW

Full Forgiveness Terms
Second Draw PPP Loans made to eligible borrowers will qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • 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.

Targeted Eligibility
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
    • - Required documentation: Payroll documentation, tax forms, quarterly financial statements or bank statements

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.

To learn more about the SBA PPP loan eligibility requirements, helpful tips, or loan forgiveness opportunities, visit the SBA website. For questions about the application process, eligibility requirements, and more, click here.

If you are a current GECU business member, please apply as soon as possible as the funds will be distributed on a first-come, first-served basis.

If you have any questions, please call the GECU Small Business Relief line at 915.774.1889 to speak to a GECU representative today.

SBA PAYCHECK PROTECTION PROGRAM LOAN FORGIVENESS**

The SBA Paycheck Protection Program loan forgiveness stage allows eligible expenses that were incurred during the covered period of your loan to be forgiven if all employee retention criteria are met.

  • PPP loans have an interest rate of 1%.
  • Loans issued prior to June 5, 2020, that have a maturity of two years. Loans issued after June 5, 2020, that have a maturity of five years.
  • 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.

A GECU representative will be available to help you throughout the process. We will only accept your application online through the link that we send you.

To learn more about the SBA PPP First Draw, SBA PPP Second Draw or SBA Loan Forgiveness, please click here to visit the SBA website.

START GETTING READY

Prior to starting your application, it is important to start gathering all of the documents that you will likely need for the loan forgiveness application, including …

  • Payroll expense reports
  • 941 Forms for eligible covered periods
  • Proof of payments for utility bills, rent, and/or mortgage interest
  • Tax forms, quarterly financial statements, or bank statements that show a 25% decline in revenue from a quarter in 2020 compared to the same quarter in 2019

We recommend that you scan all of your documents and save them in .PDF format so that they can upload easily and make the application process even faster.

*Loan application approval and processing will be subject to federal government regulations guidance and funding availability. Other conditions apply. Principal business must be located in El Paso County, Hudspeth County or Doña Ana County, not more than 25 miles from our Helen of Troy and Resler location, to be eligible for membership at GECU. Learn more about how you can join. Click here.
**Forgiveness requirements, timeframes and covered expenses are accurate as of January 11, 2021, and are subject to change pending regulatory publication by the U.S. Treasury and Small Business Administration.

Last updated: March 31, 2021