We’ll help you find your way through.
Linn Area Credit Union is committed to helping small businesses navigate the COVID-19 relief options. We will continue to update you as we receive guidance from the U.S. Small Business Administration (SBA) and other sources of assistance.
Paycheck Protection Program
Part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) stimulus package, the Paycheck Protection Program (PPP) is a federal loan program aimed at helping small businesses that have been severely impacted by the COVID-19 pandemic. To see if your business qualifies for the program and to help you identify the types of information you should begin to gather, check out the Paycheck Protection Program Guide and Checklist and the Paycheck Protection Program Borrower Application.
Please note: The deadline to submit PPP applications is July 31, 2020 in order to allow sufficient processing time to submit applications through the SBA by their deadline of August 8, 2020
To apply for financing through the PPP, you’ll need to provide some information to us. This will allow us to make a credit eligibility decision for your Paycheck Protection Program application, which must also be approved by the SBA. (Your application may be delayed and/or denied due to incomplete information or failure to provide any necessary documentation.)
In order to evaluate your request, we’ll need the following information:
- Paycheck Protection Program Borrower Application (including all supporting documentation and addendums as required in the application)
- Certification of Beneficial Owner form
- SBA Paycheck Protection Program questionnaire
- Verification that business was in operation on or around February 15, 2020
- Maximum loan amount worksheet
- 2019 payroll supporting documentation. Examples include:
- 2019 business tax returns
- Payroll processor records
- Payroll tax filings (Forms 940 and 941)
If you don’t have any of this payroll documentation, you’ll need to provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.
To submit your PPP application and documentation, please contact our member services team at email@example.com or (319) 892-7300. Once we’ve received these required documents from you, we’ll contact you if we need additional information. When our internal underwriting is completed, we’ll let you know that your application is being submitted to the SBA for their approval. (We’re sorry that we can’t provide daily updates to each applicant. It would only slow down the process for everyone, and we don’t want that to happen!)
Taking care of our small business owners’ Paycheck Protection Program applications is our commercial lending team’s top priority, and we’re doing everything we can to move forward with these as quickly as possible.
In addition to the PPP, there are other financial assistance programs that may benefit your business. (Some of these programs are not available for businesses who opt to participate in the Paycheck Protection Program.) Please consult your tax advisor to determine the best direction for your business and employees.
Economic Injury Disaster Loan Assistance
A broader range of businesses may qualify for the SBA’s Economic Injury Disaster Loan (EIDL) Assistance program than for the PPP. The EIDL assistance may be used in addition to the PPP; however, funds may not be used for the same purposes. Businesses are able to apply for an immediate advance of up to $10,000. The U.S. Chamber of Commerce is a great resource for information regarding the EIDL grants.
Employee Retention Credit
The Employee Retention Credit is designed to encourage businesses to keep employees on their payroll. The refundable tax credit may be allowed for your business for up to 50% of wages paid by the employer, up to $10,000 in total. The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have more information.
Delayed Payroll Tax Option
The CARES Act also allows for a delay of the deposit of the employer’s portion of the Social Security tax, as well as 50% of the tax imposed on self-employment income. Fifty percent of the deferred payments must be paid by December 31, 2021; the remaining half must be paid by December 31, 2022.
Iowa Economic Development continues to be a valuable resource regarding some state-level programs, and we encourage business owners to check back for new developments frequently.