As of Monday, Jan. 02
The COVID Relief Bill signed into law December 27, 2020 provides an additional $284.5 billion in funding for the Paycheck Protection Program (PPP). The new program is now open to qualifying businesses and funding is available. RCU is now accepting applications.
- PPP Second Draw Loan – Generally available to businesses with no more than 300 employees that have used the full amount of their first PPP loan and can demonstrate a 25 percent (25%) reduction in receipts in the first, second, third, or fourth quarter of 2020 relative to the same 2019 quarter. Per SBA guidelines, for a second draw PPP loan it's recommended that you submit your application through your original lender.
- PPP Loan for first-time borrowers – Generally for businesses with 500 or fewer employees that have not previously received a PPP loan, businesses can apply to borrow up to 2.5 times average monthly payroll.
On February 22, 2021, the Biden-Harris administration announced several reforms to the existing new PPP loan program. The new reforms are not retroactive to any already funded PPP loan in 2021. We have received updated guidance from the SBA and working to update our processes and online application as quickly as possible. Members are still able to apply and submit their applications to us, but we are pausing submitting any applications to the SBA directly until the SBA platform is live with the new application and our application is aligned. Rest assured, any completed applications received by RCU by the deadline of 3/31 will be submitted to the SBA. We will continue to update our website with the latest information.
Thank you again for choosing RCU as your business banking partner. It’s our honor to serve you!
Here is what you need to know:
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 in 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.