SBA Payment Protection Program (PPP) Loan Forgiveness Center

Forgiveness for 2020 PPP Funded Loans

Welcome to RCU’s Paycheck Protection Program’s (PPP) Loan Forgiveness Center and thank you again for choosing Redwood Credit Union to support your PPP loan through the Small Business Administration (SBA).

We’re here to help you and your business every step of the way during these trying times. If you received your SBA PPP loan through RCU, you’ll also need to submit your forgiveness request through us too. We understand how important loan forgiveness is for the well-being of your business and are delighted to serve you through this important process.

Important: Our priority is to provide the highest efficiency and service to you and your business, so we’ll be inviting applicants in waves to ensure we are able provide you a personalized, quality Member experience. We will be inviting your business soon. Invites will be prioritized by applications that are due first. How do I identify when my first loan payment is due?

We are continuing to update our website and will email you about all updates and announcements. To learn how you can better prepare for your PPP forgiveness application, select the PPP loan option that fits your business.

Forgiveness for any PPP loan funded in 2021 is scheduled to open in mid to late summer. As soon as PPP loans funded in 2021 are eligible for forgiveness by the SBA, RCU will notify and invite borrowers accordingly.

Tips for PPP Loan Forgiveness

This video provides tips and best practices regarding your application for loan forgiveness through RCU.

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.

First PPP Loan Payment

In June 2020, Congress passed The Flexibility Act, which changed the deferment period from 6 months post covered period to 10 months post covered period. This means the PPP loan due date reflected in your current loan paperwork is incorrect—but it also provides you additional time. For example, if your covered period ended June 30, 2020, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2021, and you have until then to request forgiveness.

In the event that all or part of your PPP loan is not forgiven, please use the following calculation to help you identify when your first payment will be due:

  • All PPP borrowers now have a covered period of 24 weeks. RCU is making this adjustment automatically.
  • No covered period will extend beyond 12/31/2020.
  • If your PPP loan was approved by the SBA on or before June 5th, you have the option to choose an 8-week covered period instead. (There does not appear to be any additional benefit to choosing the 8-week option, however if you prefer the 8-week covered period, please let us know and we will adjust.)
  • Your correct loan due date will be reflected in your online banking account.