Paycheck Protection Program
AEA Federal Credit Union is here to help you through the next round of Paycheck Protection Program (PPP) lending. On December 27, 2020, new federal legislation was signed into law, which provides nearly $900 billion in emergency coronavirus relief to families, workers, small businesses and organizations impacted by the health crisis.
This new legislation authorizes the Small Business Administration (SBA) to approve Paycheck Protection Program (PPP) loans up to the $284.5 billion in allocated PPP funding.
- New First Time Borrowers: According to the legislation, PPP loans will be available to businesses with 500 or fewer employees that have not previously received a PPP loan to help with payroll, rent, utilities, healthcare costs and more. This will likely only apply to borrowers who have not already received a PPP Loan.
Go to Application
- Additional “Second Draw” Borrowers: In addition to providing for new PPP loans for first-time borrowers, the legislation also allows certain existing PPP borrowers to receive a "second draw" PPP loan if they have used all of their first loan (or will have by the time of disbursement of the second loan), have no more than 300 employees and can demonstrate a year-over-year quarterly revenue reduction of at least 25%.
Go to Application
To apply for a PPP loan at AEA, you must meet the following criteria:
- Not have a business credit or borrowing relationship with another bank or credit union or provide evidence your primary borrowing institution is not participating in PPP.
- Not have applied for a PPP loan with another lending institution.
If you received a “First Round” PPP Loan from AEA, then you must submit a Forgiveness Application prior to receiving the “Second Draw."
How to prepare for the application process:
To help you prepare for the application process, we recommend you review and familiarize yourself with the SBA’s documentation requirements for previous rounds of PPP lending found on the SBA website.
Paycheck Protection Loan Forgiveness Process (First Round)
We are proud to stand behind our member businesses during this difficult time and work with you through the forgiveness process. Below are the steps to prepare and submit your PPP Loan Forgiveness Packet.
Step 1: Download and fill out the appropriate form for your business type.
- 3508 Standard Form – if your business claims that it has 1 or more employees.
- 3508 EZ Form – if you are self-employed and claim no employees.
- 3508S Form and Instructions- for loans $50,000 or less (total PPP loan amount received for your business, including affiliates, from AEA or other financial institutions.)
- Online Form - reduce your paperwork with this simplified online form.
Step 2: Gather supporting documents.
- Bank account statements or third party service reports documenting employee compensation.
- Tax forms or third party tax reports that includes information relating to payroll tax filings and state quarterly wage reporting an unemployment insurance tax filings.
- Payment receipts, cancelled check or account statement documenting employee health and retirement contributions from the business.
- Full Time Equivalent documentation.
Non Payroll Costs
- Amortization schedule and cancelled checks OR bank statements for each covered month plus one additional previous month to prove Business mortgage and interest payment.
- Business rent and lease payments.
Business Utility Payments
- Business utility payments for covered months and one additional previous month and concurrent bank statements. Utilities are defined as: Electricity, Gas, Water, Business Telephone, Transportation, and Internet Access.
Step 3: Complete and submit your PPP Loan Forgiveness Packet
Once the checklist is completed, please submit to AEA Federal Credit Union:
Please understand that there may be additional questions or requests for further supporting documentation.
Again, thank you for trusting us to help you through this process. We value you and your business.
As a reminder, the PPP, including PPP loan forgiveness, is governed by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program Flexibility Act of 2020, Title III of the Consolidated Appropriations Act of 2021, and the rules and guidance issued by the U.S. Treasury and SBA. Other terms and conditions under applicable law and AEA policy may apply.
For financial questions or advice, please contact your certified public accountant.