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
General Information
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, check out the SBA’s Paycheck Protection Program page.
Please note: As of May 10, 2021, the Paycheck Protection Program application period is closed, and we are unable to process any more PPP loans. Please check back for updates.
First Draw Applications
If you have not received a PPP loan, you are considered a first-time program participant. To apply for a first draw PPP loan, you’ll need to provide the following information to us:
- First Draw 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. (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.)
Examples include:- 2019 business tax returns
- Payroll processor records
- Payroll tax filings (Forms 940 and 941)
Please contact us so we can provide you with a Certification of Beneficial Owner form; an SBA Paycheck Protection Program questionnaire; and a maximum loan amount worksheet.
Second Draw Applications
If you’ve already received a PPP loan, you may be eligible for a second draw PPP loan if you will use (or have already used) the full amount of your previous PPP loan only for authorized uses; have no more than 300 employees; and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
If you received your first draw PPP loan through Linn Area Credit Union, we have your previously submitted documentation on file, and we’ll only need the following:
- Second Draw Application (including all supporting documentation and addendums as required in the application)
- Updated SBA Paycheck Protection Program questionnaire
- Maximum loan amount worksheet
Please contact us so we can provide you with an SBA Paycheck Protection Program questionnaire and a maximum loan amount worksheet.
If another financial institution serviced your first draw PPP loan, you’ll need to provide to Linn Area Credit Union the following:
- Second Draw 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. (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.)
Examples include:- 2019 business tax returns
- Payroll processor records
- Payroll tax filings (Forms 940 and 941)
Please contact us so we can provide you with a Certification of Beneficial Owner form; an SBA Paycheck Protection Program questionnaire; and a maximum loan amount worksheet.
Submitting Your Application
To submit your PPP application and documentation, please contact our Member Services team at hello@linnareacu.org 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.
Other Assistance
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.
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.
State-level assistance
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.
