The U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP) is a loan designed to provide direct relief for small businesses to use for payroll, benefits, mortgage interest, rent, and utilities.
ICCU Is Helping Small Businesses
For small businesses struggling during the COVID-19 pandemic, it’s our priority to help you keep the lights on. As a Preferred SBA Lender and one of the state’s largest SBA providers, Idaho Central Credit Union is committed to making this process go smoothly to help businesses and employees during this time.
PPP Loan Forgiveness
Loan Forgiveness Application Portal
Idaho Central has developed an online portal to process PPP Loan Forgiveness. We are opening these up in waves based upon the date your PPP loan was funded. You will be notified via email when it is your turn to start the process.
The PPP rules and the PPP Forgiveness rules have changed frequently. We will do our best to keep you informed.
Due Dates: The SBA changed due dates and due date language during the original PPP loan process. You will now have up to 10 months past your Covered Period before your first payment is due. We are making the changes within our system on a daily basis. There is nothing that you will need to do to extend your first payment due date.
Select Appropriate Application
If you currently have a PPP Loan, the Small Business Administration (SBA) has issued additional guidance, as well as PPP Loan Forgiveness Applications on SBA.gov. Please review the applications and see which one your business qualifies to use. Each application gives borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process.
Simple Application (SBA Form 3508S). This simple form does not require any calculations on the application. You are eligible if your PPP loan was $50,000 or less. There are still items that need submitted to the SBA, but it is less than even the EZ form.
Preview the application at home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf
Again, we are not currently taking these applications, but we will provide further information as soon as we have the application built in our online portal.
You are not obligated to use this application. If you would like to use one of the other forgiveness applications you are able to do so.
EZ Application (SBA Form 3508EZ). The EZ Application requires fewer calculations and less documentation for eligible borrowers. You might be eligible if you meet at least one of the following:
- Are self-employed, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application; OR
- Did not reduce the salaries or wages of your employees by more than 25%, AND did not reduce the number or hours of your employees; OR
- Did not reduce the salaries or wages of your employees by more than 25%, AND experienced reductions in business activity as a result of health directives related to COVID-19.
Standard Application (SBA Form 3508). If you are unable to meet any of the criteria listed under the EZ Application, you must use the regular loan forgiveness application.
For more information, download the instructions for the Paycheck Protection Program Loan Forgiveness Application.
Gather Required Documentation
Once you determine the appropriate application, please begin gathering the required documentation. Please do not submit a Loan Forgiveness Application at this time.
ICCU will have 60 days from receipt of a completed application to submit it to the SBA. The SBA then has an additional 90 days to process the application. The Paycheck Protection Program Flexibility Act also extends the potential maturity of the loan, as well as your first payment date. ICCU will work diligently to submit more than 3,700 applications for the business members we have been able to help.
Payroll Costs. Now ONLY 60% of your qualified expenses need to be spent on payroll related items. You can start gathering your payroll reports, tax forms, payment receipts and so forth that will be required for submission. The necessary documentation requirements are outlined in both applications.
Non-payroll Costs. Up to 40% of your qualified expenses can now be used towards non-payroll expenses. As a lender, we need to verify business mortgage interest payments, lease agreements or utility payments if they are going to be included. The necessary documentation requirements are outlined in both applications.