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Loan Forgiveness Center

Loans Less Than $150,000 Funded in 2021

Loans Less 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?

  • Review our Starter Tips before you start your application.

    • Understand covered expenses and timing. To qualify for loan forgiveness, the PPP funds must be used for eligible costs incurred or paid during a 24-week (168-day) covered period.

      • Spend at least 60% of the funds on payroll.
      • Use the remainder of the funds on eligible expenses (examples include mortgage interest, rent, lease payments, and utilities based on current SBA criteria for PPP loan forgiveness).
    • Consider discussing with your financial and/or tax advisor before responding to email invitation sent by RCU.
  • 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.

    • If you received your SBA PPP loan through RCU, you’ll receive an email questionnaire from us with five questions, which when answered, will allow us to fill in your form with the information we already have on-hand. We’ll be inviting applicants in waves to ensure we are able provide you a personalized, quality Member experience. Invites will be prioritized by applications that are due first.
    • You have until the maturity date of the loan to apply for loan forgiveness, but if you submit your loan forgiveness application within 10 months of the covered period, you won’t have to make any payments of principal or interest on your loan before the date the SBA makes a final decision on the loan forgiveness amount.
  • Once you’ve submitted your PPP loan forgiveness application, our team will:

    • Review to ensure your answers to the four questions asked in the email. If the information is satisfactory, we’ll be sending a DocuSign request.
    • Submit your application to the SBA on your behalf. You’ll receive an email notifying you when this process is complete.
    • Notify you of the decision, based on U.S. Small Business Administration (SBA) guidelines.
    • While waiting for your forgiveness decision please collect the following documents, these do not need to be submitted with your application:

      • If you are a sole proprietor your 2019 & 2020 Schedule C.
      • If you have employees, all quarters of your 2020 941 federal tax forms.
      • If you have employees, all quarters of your state quarterly business tax forms.
      • A payroll summary, bank statements, or canceled checks detailing payroll paid to employees during your covered period.
      • Any health insurance or retirement contributions made to employees during your covered period.
      • If your payroll costs did not cover your entire loan amount. Your nonpayroll expenses (such as rent, lease payments, mortgage payments, or utility payments).

    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 or call (707) 576-5070 option 4, and a member of our PPP loan forgiveness team will get back to you within 24 hours.

  • 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 (or 3.5 if associated with a Food Services vendor in 2021)
    • Interest rate: 1.0%
    • Maturity date: 2 years (can be modified up to 5 years)
    • 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.