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Now more than ever our Business Services team is here to support youThere are a variety of programs and assistance being offered and we can help you navigate them as an approved SBA lender.
 
The Paycheck Protection Program (PPP) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
 
The loan amounts will be forgiven as long as:
  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
  • Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

Loan payments will be deferred for 6 months
 
 
We are only accepting applications from current MMFCU business members or non-profits to ensure we are able to serve them first. 
 
3 Steps to Apply:
  1. Save the PPP application to your computer before filling it out
  2. Resave after completion
  3. Upload to the PPP application securely using the form below along with the required payroll documents
 
Small Business and Sole Proprietorship Application 
 
PPP Fact Sheet
 
SBA Guidance for Calculating Loan Amounts
 
How do I calculate monthly payroll amount:
Select the applicable time period.
  • For most companies, use (i) your last twelve months of payroll or (ii) your full year 2019 payroll. We recommend that you prepare both calculations and consult with your lender for guidance on the appropriate time frame due to conflicting views between the Treasury Department guidance and the sample PPP Loan instructions on this.
  • For seasonal businesses, use a 12 week period between February 15, 2019 and June 30, 2019*.
  • For new companies, use January 1, 2020 to February 29, 2020*.
  • Sole Proprietorship – Net Income from 2019 (line 31 on Schedule C) divided by 12 or an eight week period between February 15, 2019 and June 30, 2019 (divided by 2 to get monthly average)

What documents do I need to provide with application (Independent Contractors cannot be included in calculation):

The documents below will provide the information needed to verify payroll amounts.
  • 940 IRS Form
  • 941 IRS Form (4 of them to capture full 12 months)
  • W3 (S Corp)
  • Schedule C from 2019 (self-employed, independent contractor, sole proprietor)
 How do I know my PPP application is approved?
  • Mid Minnesota will send you an email with the SBA approval.
  • A few days after SBA approval notification email, the loan documents will follow.
 
Complete form and securely submit with ALL required documents:
-Completed PPP application
-Payroll documentation from previous year
 Submitting application without supporting documents will delay processing.
 
 
Who can apply?
All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).

For this program, the SBA’s affiliation standards are waived for small businesses
(1) in the hotel and food services industries (click HERE for NAICS code 72 to confirm); or
(2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or
(3) that receive financial assistance from small business investment companies licensed by the SBA.
Additional guidance may be released as appropriate.

What do I need to apply?
You will need to complete the Paycheck Protection Program loan application and submit the application with the required documentation to your Mid Minnesota Business Lender that is available to process your application by June 30, 2020.

What other documents will I need to include in my application?
You will need to provide your lender with payroll documentation.

Do I need to first look for other funds before applying to this program?
No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).

How long will this program last?
Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.

How many loans can I take out under this program?
Only one.

What can I use these loans for?
You should use the proceeds from these loans on your:
  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.

What counts as payroll costs?
Payroll costs include:
 
  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.

How large can my loan be?
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.

How much of my loan will be forgiven?
You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.
  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

How can I request loan forgiveness?
You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.

What is my interest rate?
0.50% fixed rate.

When do I need to start paying interest on my loan?
All payments are deferred for 6 months; however, interest will continue to accrue over this period.

When is my loan due?
In 2 years.

Can I pay my loan earlier than 2 years?
Yes. There are no prepayment penalties or fees.
 
Do I need to pledge any collateral for these loans?
No. No collateral is required.

Do I need to personally guarantee this loan?
No. There is no personal guarantee requirement.
***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***

What do I need to certify?
As part of your application, you need to certify in good faith that:
  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

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