Financial Assistance for Small Businesses

The CARES Act provides funding for SBA Paycheck Protection loans. These loans will help help small businesses pay their employee and cover expenses like benefits, building rent or mortgage interest and utilities. We've partnered with Kabbage to help you access these critical funds.   

Notice: Paycheck Protection Program resumed January 11, 2021 at 9am ET
SBA, in consultation with the U.S. Treasury Department, reopened the Paycheck Protection Program (PPP) for First Draw PPP Loans the week of January 11, 2021. SBA will begin accepting applications for Second Draw PPP Loans on January 13, 2021.

To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs), which include Community Development Financial Institutions (CDFIs), Minority Depository Institutions (MDIs), Certified Development Companies (CDCs), and Microloan Intermediaries. Paycheck Protection Program lending will reopen to all participating lenders shortly thereafter. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low or moderate-income neighborhoods.

Loan details

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan.

Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

Maximum loan amount and increased assistance for accommodation and food services businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (use NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

Who may qualify
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
Has no more than 300 employees; and
Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020

How and when to apply
You can apply for a Second Draw PPP Loan from January 13, 2021, until March 31, 2021. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from participating community financial institutions (CFIs). All Second Draw PPP Loans will have the same terms regardless of lender or borrower.

   

Click to Apply

Disclaimer: Members Advantage Credit Union has partnered with Kabbage, Inc. to provide you access to the SBA loans made available through the federal CARES Act. All loan applications, documentation, decision and approval criteria are managed and administered by Kabbage. You understand that members Advantage Credit Union will not be an originator or servicer of your loan. By clicking "Apply Now," you will leave the Members Advantage Credit Union site and will be re-directed to a website not controlled by Members Advantage Credit Union. The linked website may have a privacy policy that is different than that of Members Advantage Credit Union, please consult the linked website's privacy policy for further information. 

Your use of the site and your reliance on any information on the site is solely at your own risk. All information on this site is provided in good faith, however members Advantage Credit Union makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the site. Under no circumstance shall members Advantage Credit Union have any liability to you for any loss or damage of any kind incurred as a result of your use of the or reliance on any information provided on the site or your submitting a loan application to Kabbage.

Tuesday, 14 April 2020 19:07