The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

Benefits of the Paycheck Protection Program Loan:

1% ᴬᴾᴿ
for the first two years with interest deferred for the first six months

Loan forgiveness available two months after funding

Payments are deferred for six months

 

THINGS TO KNOW BEFORE YOU APPLY

What happens if PPP loan funds are misused?

If you use PPP funds for unauthorized purposes, SBA will direct you to repay those amounts. If you knowingly use the funds for unauthorized purposes, you will be subject to additional liability such as charges for fraud. If one of your shareholders, members, or partners uses PPP funds for unauthorized purposes, SBA will have recourse against the shareholder, member, or partner for the unauthorized use.

How do I calculate the payroll figure for the application?

Example 1 – No employees make more than $100,000

Annual payroll: $120,000

Average monthly payroll: $10,000

Multiply by 2.5 = $25,000

Maximum loan amount is $25,000

 

Example 2 – Some employees make more than $100,000

Annual payroll: $1,500,000

Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000

Average monthly qualifying payroll: $100,000

Multiply by 2.5 = $250,000

Maximum loan amount is $250,000

I heard that expenses such as rent, utilities, and interest paid on mortgages can be included in this program. Is that correct?

The common misconception is that these expenses are to be used in combination with the payroll expense and calculated for the loan application amount. That is incorrect. For the loan amount, you only calculate payroll expenses as the above examples demonstrate. However, the use of loan funds can be applied to these additional expenses, but only as stipulated below.

At a minimum, 75% of the funded loan proceeds must be applied to payroll expenses. The remaining 25% or less or funded loan proceeds can be applied to other approved expenses.

HOW TO APPLY

 

Our Business Services Team is ready to help. Please complete the application below and gather all items listed on the checklist.

 

DOWNLOAD THE CHECKLIST.

 

DOWNLOAD THE APPLICATION.

 

Email these items to bserv@louisianafcu.org.

 

HAVE QUESTIONS? REQUEST A CALL BACK AND WE WILL HELP YOU GET THERE.

Business Deposit Accounts

ECONOMIC INJURY DISASTER ADVANCE LOAN

In response to the pandemic, small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid.

Unlike the PPP, banks and credit unions do not handle these loans. We encourage our members to apply directly with the SBA.

 

 APPLY TODAY.