June 25, 2020
This article has been archived and is no longer updated by GLCU
Bannockburn, Illinois – Chicagoland’s Great Lakes Credit Union (GLCU) encourages all small-business owners to take advantage of the SBA PPP loan before the application deadline on June 30, 2020. With over $100 billion still available to the program (as of the beginning of June) and benefits such as loan forgiveness to small business owners, GLCU commits to process as many applications as possible to help business owners gain relief throughout the COVID-19 pandemic.
“We understand that many small business owners faced challenges when attempting to secure their funding through the program,” said Chief Lending Officer Fred Campobasso. “We felt compelled to take action, and started to offer the SBA PPP loan to provide our local small-business owners the support they need to help secure those funds, regardless if they are a current GLCU member or not.” PPP loans are available on a first-come, first-serve basis and all small business owners are encouraged to apply online via https://www.glcu.org/sba-loans/
This loan program was designed to help small businesses to stay on their feet and keep their workers on the payroll throughout the COVID-19 pandemic. While benefits such as loan forgiveness are commonly known, the SBA PPP loan has gone through several iterations over the past several months, causing confusion surrounding the program’s guidelines and restrictions. The most up-to-date SBA PPP details are outlined below:
SBA Loan details
President Trump recently signed to adopt the Payroll Protection Flexibility Act, giving small-business owners more opportunities to take advantage of the program. Adjustments to the program include:
- Borrowers will now have 24 weeks to spend the SBA PPP loan funds (previously eight weeks)
- 60% of the SBA PPP funds must be spent on payroll (reduced from 75%)
- The covered period of the loan now ends December 31 (previously June 30)
- Employer payroll tax payments not required through the end of 2020.
- The payback period for new loan applicants has been extended from two to a minimum of five years for those not seeking loan forgiveness or who are deemed ineligible.
Understanding the SBA’s PPP loan forgiveness
One of the most significant benefits of the SBA PPP loan is the ability of the borrower to take advantage of loan forgiveness. To qualify, payroll costs must be 60% or more of the approved loan amount. A written request for loan forgiveness is required, including the number of full-time equivalent employees, employee pay rates, your payments on an eligible mortgage or lease, and payments on utilities.
No collateral or personal guarantees are required, and neither the government nor lenders (such as GLCU) will charge small businesses any fees. Loan forgiveness eligibility is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Loan forgiveness can be reduced or denied if full-time headcount declines, or if salaries and wages decrease.
With the SBA PPP loan, qualifying small businesses can request up to 2 months of their average payroll costs, plus an additional 25%. For example, if your 2-week average payroll costs are $8,000, add 25%. Your total loan amount would be $10,000.
There is no minimum loan amount for the GLCU program, and the maximum is $3,000,000.
About Great Lakes Credit Union
Founded in 1938, GLCU continues to be a growing staple in our communities. As a not-for-profit financial institution, chartered by the State of Illinois and insured by the NCUA, we are guided by a dedicated volunteer Board of Directors and are proud to serve more than 84,000 members with over $1 billion in assets. We are headquartered in Bannockburn, IL and now have 12 branch locations and more than 170 ATMs locally. GLCU also belongs to the CO-OP Shared Branching Network. Members can access accounts nationwide at over 5,600 institutions with thousands of locations in 50 states, and at any of their 30,000 surcharge‐free CO‐OP ATMs. All 200+ employee-owners pride ourselves on building lifelong relationships with our member-owners and providing them with financial education during all life stages. Learn more at glcu.org
GLCU is currently offering SBA's Paycheck Protection Program (“Program”) loans to eligible members and non-members. All applications submitted under the program must be approved by the SBA. SBA PPP funds are limited. GLCU does not guarantee that applications will be processed and submitted before the program's available funds are exhausted. There is no cost to apply for this loan. GLCU does not limit your ability to apply with other lenders and/or SBA PPP platforms. Qualifying required for membership, loans, and select products and services. Loan amount not to exceed $3,000,000. Program currently open to Illinois and Wisconsin businesses only (includes Racine and Kenosha counties, business must reside within GLCU's field of membership). This Program and its availability/eligibility is subject to change at any time.