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We know these are very challenging times and we want to make sure getting a PPP loan isn’t something you have to stress about.

In round one of the Paycheck Protection Program, First Heritage helped 192 small businesses gain access to over $9 million of financial relief, and we’ve been working diligently to make it even easier for you to secure your next PPP loan. Whether this is your first PPP loan or your second draw we are here to help!


 

Ready to Apply for your PPP Loan?

When you click on one of the application links below you will need to enter your full name and your email address. Once you do this you will receive a custom verification code sent to your email.  You will enter the verification code in the access code box on the screen and proceed to completing your application.

Your application will be sent to us electronically or you can easily print the application and drop off at any of our branch locations.

Once your application is received one of our loan team members will be in contact with you to review your application and may request additional documents.

If you have any questions, please feel free to reach us at ppploans@fhfcu.org

 


Did you have a PPP Loan in 2020?
Here’s what you’ll need to be eligible for a PPP loan in the new round:
  • Demonstrate at least a 25% reduction in gross receipts (to be defined by SBA) in any quarter of 2020 relative to the same quarter in 2019.
  • Employ fewer than 300 employees.
Please note on the application you may leave the following sections blank and we will complete for you:
  • NAICS Code
  • First Draw PPP Loan Number
If your second draw amount is different from your original PPP loan draw you may be asked to provide your 2020 payroll documentation. If you are uncertain what the exact amount of your original PPP draw is please reach out to us and we will be happy to provide it for you.
 


Is this the first time applying for a PPP Loan? 
For sole proprietors, self-employed and independent contractors still looking to apply for the PPP Loan program below is a list of items that the SBA is requesting:
  • Copy of driver’s license front and back.
  • Completed Application.
  • Business Documentation, DBA certificate or article of incorporation.
  • 2019 tax returns for the business or 2019 Schedule C from your personal Tax return (if you have not filed your 2019 taxes we can look at your 2018 returns and your 2019 P&L).
  • Monthly payroll calculations - wages need to be based on the net profit shown on your business tax return or schedule C.
List of Required Documentation for LLC and Corporations:
  1. Articles of Incorporation/Organization (Corporations) or Bylaws/Operating Agreement (LLCS) or Business License (Sole Proprietorships).
  2. Completed Paycheck Protection Program Application.
  3. 2019 IRS Quarterly 940, 941 or 944 Payroll Tax Reports.
  4. 2019 Payroll Report (Including Payroll Taxes and Number of Employees) For Calendar Year 2019 or 2020 Payroll Report from January 1, 2020 TO February 29, 2020 (New Businesses Only).
  5. Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan. Include all employees and the company owners.
  6. Document 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).
  7. Completed payroll calculator worksheet.
  8. List of all employees with annual salary or compensation in excess of $100,000.
  9. Copy of front and back of drivers license or passport for all authorized signors of business.
  10. Schedule of any supplementary facts or answers as requested in the application.


 

We’re here to answer your questions.


Who is eligible to receive a PPP Loan?

Only certain businesses are eligible to receive a PPP loan, and these specifications are different for first-time loan recipients and second-draw recipients.

To be eligible for a first-draw PPP loan:
  • Your business has less than 500 full-time, part-time, or seasonal employees.
  • Your business was operational before February 15, 2020 and remains operational.
To be eligible for a second-draw PPP loan:
  • Your business has less than 300 full-time, part-time, or seasonal  employees; if you have multiple locations, you may not have more than 300 employees per location.
  • You are able to demonstrate a revenue reduction of at least 25% in the first, second, or third quarter of 2020 (when compared with the same quarter in 2019).
  • You have used or will use the full amount of the first-draw PPP.
  • Your business was operational before February 15, 2020 and remains operational.
Businesses eligible for first- and second-draw PPP loans include:
  • Sole proprietors.
  • Independent contractors.
  • Self-employed individuals.
  • Certain non-profits (the new bill has expanded eligible businesses to include certain 501(c)(6) non-profit organizations).
  • Seasonal employers; the new bill has clarified the definition of these to be businesses that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period.
  • Faith-based organizations that have less than 150 employees.
  • Housing cooperatives that employ less than 300 people.

 

What has changed with round 2 of PPP?
Here’s PPP under the Consolidated Appropriations Act, 2021 at-a-glance:
  • $284 billion has been allocated to PPP (including $138 billion of unspent loans from the first round that were reinvested) and the program has been extended to March 31, 2021.
  • Second-draw loans are available for businesses with under 300 employees.
  • Businesses eligible for PPP loans has been expanded.
  • Loan limitations have been expanded for certain businesses.
  • Forgiveness for loans under $150K have a new, simplified one-page application.
    • While expenses eligible for forgiveness still require a 60/40 split of payroll costs/other eligible expenses, group health insurance benefits are now included in payroll costs (and these entail life insurance, disability benefits, vision, and dental insurance).
  • Eligible expenses for forgiveness have been expanded (for first-draw loans that have not yet been forgiven and for second-draw loans).
  • Borrowers are allowed to choose a covered period that is any period of time between eight and 24 weeks.
  • PPP funding includes dedicated set-asides for community lenders (CDFIs and MDIs) and business that operate in low-income areas.
  • A clarification has been made indicating that interest rates on PPP loans are non-compounding and non-adjustable.
  • A clarification has been made indicating that forgiven PPP loans are not taxable and forgiven expenses are tax-deductible.

What are the PPP loan maximums and limitations?
First-draw PPP loan limitations:

The maximum amount a business that has not yet received a PPP loan can borrow is the lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs
  • $10 million

There may be exceptions to these limits for restaurants and other hospitality businesses.

Second-draw PPP loan limitations:

Any business that is applying for a second draw will be subject to more stringent limitations. The maximum second PPP loan amount is the lesser of:

  • 2.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year
  • 3.5 times the average monthly payroll costs and healthcare costs in the year prior to when the loan was received or within the calendar year for any business that is classified under Code 72 by the North American Industry Classification System (NAICS). (This is a list of hospitality and entertainment businesses like restaurants, hotels, and casinos; click the link to get the full list.)
  • $2 million
 
I wasn’t able to get a first-round PPP loan. Should I try for one in the second round?

Yes, as long as you are eligible and can adhere to the terms of the loan. With the creation of the new bill, Congress has set aside allocations for community lenders and institutions that can help smaller businesses, businesses owned by POC, and those who operate in lower-income areas access capital. 

A portion of funding is being directed to Community Development Financial Institutions (CDFIs) and Minority Depository Institution (MDIs). These are community lenders who have committed to expanding economic opportunity for underserved people. Not only are portions of the PPP allocated for these lenders, but also outside of PPP funds; $12 billion is being routed to CDFIs and MDIs. This means that even if the community lenders in your area aren’t supporting PPP, they may be offering other loans with federal funds under the Consolidated Appropriations Act, 2021.

 
I returned part or all of my PPP loan. Can I apply for another PPP loan?

Yes. Within 17 days of the enactment of this bill, the SBA is required to release guidance to lenders on allowing borrowers who have returned loans to access PPP capital. 


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