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You may be eligible for either a "First Draw" or "Second Draw"  loan under the Small Business Administration's (SBA) Paycheck Protection Program. This program is designed to provide your small business access to funds you may need to continue paying your employees and operating your business.

How to Apply:

Please complete the correct application form from one of the links on this page (there are more details below) and drop them off through the drive-up at our Marshfield and Hoover locations or in the night drop and we will start a file for you.  We will submit the application through the Small Business Administration's PPP lending system and reach out to you once we have a decision or if we have any other questions. 

Please help us meet your funding needs quickly by reviewing the SBA PPP to:

  • Ensure you are eligible
  • Properly calculate your loan amount
  • Gather your supporting documentation
  • Prepare your answers for the application questions.
  • Contact your Accountant, Bookkeeper, or CPA to assist in calculating your allowable loan amount and to create the proper supporting documents. Simplicity CU can provide resources on the program guidelines, but is unable to calculate loan amounts or create application materials on your behalf.
Please Note:
Due to the unprecedented need for the PPP program the SBA submission portal (E-Tran) may experience intermittent downtime. Lenders across the United States will have longer processing times if this system is down.
During times that the SBA submission portal (E-tran) is down, applications cannot be completed. The SBA must approve all applications before funding from your financial institution is possible.
Please check back on this page for updates.

"First Draw" SBA Paycheck Protection Program

You may be eligible for "First Draw" funding under the Small Business Administration's Paycheck Protection Program if you have not already received this funding. Read our FAQs below for more information and start your application here.

Frequently Asked Questions For "First Draw" SBA PPP Lending:

Eligible borrowers must have 500 or fewer employees whose principal place of residence is in the United States, or are a business that operates in a certain industry and meets the applicable SBA employee-based size standards for that industry and the following criteria:

  • A small business concern as defined in section 3 of the Small Business Act, and subject to SBA's affiliation rules under 13 CFR 121.301(f) unless specifically waived in the Act
  • A tax-exempt nonprofit organization described in section 501(c)(3) of the Internal Revenue Code (IRC), a tax-exempt veterans organization described in section 501(c)(19) of the IRC, Tribal business concern described in section 31(b)(2)(C) of the Small Business Act, or any other business; and
  • You were in operation on February 15, 2020 and either had employees for whom you paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC.
  • Eligible borrowers also include an individual who operates under a sole proprietorship or as an independent contractor or eligible self-employed individual if you were in operation on February 15, 2020.
  • Nonprofit organizations specifically authorized under the CARES Act are eligible.

NOTE: Eligible borrowers may not receive more than one PPP loan, a borrower should consider applying for the maximum amount.

A small business is eligible to borrow the lesser of $10 million or an amount that is calculated using a formula in the CARES Act, which is basically up to 2.5 times their average monthly payroll costs from the previous year. Payroll costs consist of compensation to employees in the form of salary, wages, commissions, or similar compensation; payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, payment of state and local taxes assessed on compensation of employees, and certain other costs. The CARES Act outlines exclusions to the calculation of payroll costs.

For example, the following methodology will assist most applicants in determining the maximum PPP loan amount:

  • Example 1 - No employees make more than $100,000 Annual payroll: $120,000 Average monthly payroll: $10,000 Multiply by 2.5 = $25,000 Maximum loan amount is $25,000
  • Example 2 - Some employees make more than $100,000 Annual payroll: $1,500,000 Subtract compensation amounts in excess of an annual salary of $100,000: $1,200,000 Average monthly qualifying payroll: $100,000 Multiply by 2.5 = $250,000n Maximum loan amount is $250,000

NOTE: Independent contractors do not count for purposes of a borrower's PPP loan calculation as they have the ability to apply for a PPP loan on their own.

  • Payroll costs (as defined in the Act and above)
  • Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
  • Mortgage interest payments (but not mortgage prepayments or principal payments)
  • Rent payments
  • Utility payments
  • Interest payments on any other debt obligations that were incurred before February 15, 2020; and/or
  • Refinancing an SBA Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 with certain conditions. If the EIDL loan was not used for payroll costs, it does not affect the eligibility for a PPP loan. If the EIDL loan was used for payroll costs, the PPP loan must be used to refinance the EIDL loan.
  • The interest rate will be 100 basis points or one percent.
  • The maturity is two years.
  • No fees will be charged.

Payments do not need to be made for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment.

Any portion of the loan used to make payroll, pay for utilities, rent, mortgage, and existing business debt may be forgiven, dollar for dollar if workers remain employed through the end of June. The amount of loan forgiveness can be up to the full principal amount of the loan and any accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan. However, not more than 25 percent of the loan forgiveness amount may be attributable to non-payroll costs.

Borrowers must submit SBA Form 2483 (Paycheck Protection Program Application Form) and required payroll documentation as outlined in the interim final rule. Lenders must submit SBA Form 2484 (Paycheck Protection Program Lender's Application for 7(a) Loan Guaranty) electronically in accordance with program requirements and maintain the forms and supporting documentation in its files.

On the Paycheck Protection Program Application SBA Form 2483, an authorized representative of the applicant must certify in good faith to the timeframe during which the applicant was in operation and paying employee salaries, the necessity for the loan request to continue operations in the current economic situation, funds will be used to retain employees and pay salaries and other approved costs, and provide required documentation to verify stated costs.

In addition to the terms and conditions of other 7(a) loans, the PPP loans will be guaranteed with certain changes including but not limited to:

  • The guarantee percentage is 100 percent.
  • No collateral or personal guarantee will be required.
  • The interest rate will be 100 basis points or one percent.
  • All loans will be processed by all lenders under delegated authority and lenders will be permitted to rely on certifications of the borrower in order to determine eligibility of the borrower and the use of loan proceeds.
  • There will be no up-front guarantee fee payable to SBA by the borrower.

"Second Draw" SBA Paycheck Protection Program

If you have previously received funding from the SBA PPP, you may be eligible for "Second Draw" funding. Read our FAQs below for more information and start your application here.

Frequently Asked Questions For "Second Draw" SBA PPP Lending:

To qualify for a Second Draw PPP Loan, you must meet five requirements:

  • You're a business, independent contractor, eligible self-employed individual, sole proprietor, nonprofit organization, eligible for a First Draw PPP Loan, veteran’s organization, Tribal business concern, housing cooperative, small agricultural cooperative, eligible 501(c)(6) organization or eligible nonprofit news organization that:
  • That has 300 or fewer employees, unless you're a business that satisfies the North American Industry Classification System (“NAICS”) code beginning with 72 or an eligible news organization with more than one physical location.
  • Has experienced a revenue reduction of 25% or greater in 2020 relative to 2019.
  • Had received a First Draw PPP Loan
  • Have used, or will use, the full amount of the First Draw PPP Loan on or before the expected date on which the Second Draw PPP Loan is disbursed to the borrower

Borrowers are still required to spend at least 60% of the funds on payroll over a covered period of either 8 or 24 weeks to receive full forgiveness.

The other 40% may be used on eligible costs, including certain mortgage expenses, rent, and utility payments.

Under the renewed program, the list of eligible non-payroll expenses has been expanded to include four new categories, including:

  • Costs for personal protective equipment and adaptive investments that help a PPP loan recipient comply with federal and/or health and safety guidelines related to COVID-19;
  • Outlays for on software, cloud computing, human resources, and accounting needs;
  • Any spending not covered by insurance that are related to property damage due to public disturbances that occurred during 2020;
  • Spending to suppliers that covered costs essential to the business operations at the time the outlay occurred. For instance, restaurants’ purchases of perishable goods can now qualify.
  • 1.00% fixed rate. 
  • All payments are deferred for 6 months; however, interest will continue to accrue over this period. 
  • 24 month loan period. 
  • There are no fees.

Payments do not need to be made for six months following the date of disbursement of the loan. However, interest will continue to accrue on PPP loans during this six-month deferment.

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 forgiveness within 60 days . 

For more information on PPP Loan forgiveness, see the U.S. Small Business Administration’s PPP loan forgiveness application and instructions.

  • Documentation to substantiate a revenue reduction of 25% or more (tax forms, financial statements, bank statements). 
  • Payroll documentation required in the first draw will be the same for second draw loans.

In addition to the terms and conditions of other 7(a) loans, the PPP loans will be guaranteed with certain changes including but not limited to:

  • The guarantee percentage is 100 percent.
  • No collateral or personal guarantee will be required.
  • The interest rate will be 100 basis points or one percent.
  • All loans will be processed by all lenders under delegated authority and lenders will be permitted to rely on certifications of the borrower in order to determine eligibility of the borrower and the use of loan proceeds.
  • There will be no up-front guarantee fee payable to SBA by the borrower.

Additional Resources: