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SBA PAYCHECK PROTECTION PROGRAM (PPP)

Loan Forgiveness Center

Loans More Than $150,000 Funded in 2021

Loans More Than $150,000 Funded in 2021

We understand how important loan forgiveness is for the well-being of your business, and we look forward to serving you through the PPP loan forgiveness process. If you received your SBA PPP loan through RCU, you’ll also need to submit your forgiveness request through us. Please note, we’re not participating in the SBA’s direct forgiveness portal to ensure you get high quality service and support. Our dedicated team of PPP experts is ready and available to assist you. Our involvement will not add additional time to the application process.

The following information has been prepared to help get your started. As a reminder, you have a 10-month window from the end of the covered period of your PPP loan to submit your forgiveness application, so there is no need to rush. How do I identify when my PPP forgiveness application deadline?

  • What form should I use? 3508EZ or 3508 Standard

  • When you are ready to start the process please notify us to send you a secure link to access your online application. Click here to notify us or email us at pppadmin@redwoodcu.org.

    We will then send you a secure link to your email with instructions. Once you have clicked on the link above and submitted the requested information our team will process your request in the order received.

  • Please proceed in using the link sent to you via email and the instructions attached to that email to access your application portal to complete your application.

    If you need any assistance throughout the process, email our PPP team at PaycheckProtection@redwoodcu.org with any questions.

  • Once you’ve submitted your PPP loan forgiveness application, our team will:

    • Review to ensure your application is complete, and documents are verified.
    • Submit your application to the SBA on your behalf.
    • Notify you of the decision, based on U.S. Small Business Administration (SBA) guidelines.

    If your loan is partially forgiven, you’ll receive communication with the amount and date of your first payment for the unforgiven portion. Your RCU PPP loan will operate like a traditional term loan with monthly payments.

  • If you need assistance, email paycheckprotection@redwoodcu.org or call (707) 576-5070 option 4, and a member of our PPP loan forgiveness team will get back to you within 24 hours.

  • Background: The Federal Paycheck Protection Program (PPP) is meant to provide small business with funds to allow to pay their employees while they are unable to operate due to the impacts of COVID-19. If used as intended, the business may have their loan forgiven by the SBA in full or in part. The program began on 04/03/20 and remained open through 08/08/2020.

    Eligibility: Eligible businesses included small businesses with less than 500 employees, sole proprietorships, and independent contractors. There are important exclusions, including any business illegal under federal, state, or local law (including cannabis businesses).

    Usage of Loan Proceeds: The business must primarily use the loan to pay payroll costs but can include some other expenses such as mortgage interest, rent, utilities, and to refinance disaster assistance loans obtained from the SBA between 01/31/2020-04/30/2020. For your other eligible expenses—rent, utilities, and/or mortgage interest—you must have claimed (or been able to claim) a deduction for those expenses on your 2019 Form 1040 Schedule C. Proof of having paid those expenses during your covered period, such as rent or lease payments, will be required.

    Qualifying Payroll Costs: Allowed payroll costs are broadly defined and include compensation to employees, payment for leave time, health and retirement payments, and state and local taxes. For independent contractors or sole proprietors, it includes wages, commissions, income, or net earnings from self-employment or similar compensation. There are important exclusions, including compensation to employees living outside the USA, compensation of individual employees in excess of an annual salary of $100K, and some taxes.

    Key Loan Terms:

    • Maximum loan amount: the lesser of $10 million or average monthly payroll costs X 2.5
    • Interest rate: 1.0%
    • Maturity date: 2 years (can be modified up to 5 years)
    • Limitation on # of PPP loans: borrowers are limited to no more than 1 PPP loan
    • First payment due date: after SBA pays off the forgiven amount, or 10 months after funding.

    Loan Forgiveness: Depending on how the business uses the loan, PPP loans can be forgiven by the SBA in whole or in part. There are important restrictions the business must abide by in order to qualify for loan forgiveness, including keeping employees on payroll or quickly rehiring them within 24 weeks of receiving the loan and using the loan primarily for payroll (only 40% may be used for non-payroll eligible expenses).

  • The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content and materials on this site are for general informational purposes and are intended solely to help applicants navigate the requirements of the SBA PPP loan program.

    Please be aware that additional guidance may be provided by either or both agencies at any time, and it may directly impact whether a loan is forgiven in whole or in part. Redwood Credit Union is striving to stay on top of further guidance as it is issued from the SBA. The information contained on this page is based on laws, rules, regulations, and related guidance with respect to the Paycheck Protection Program, including guidance issued by the U.S. Small Business Administration (SBA) on March 3, 2021. We will periodically update this information, so please check back often.

    The information on this website may not constitute the most up-to-date legal or other information.

PPP Forgiveness Application Deadline

Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:

  • PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
  • RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
  • Your correct deadline will be reflected in your online banking account.

If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.

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