December 31, 2020
Chicagoland’s Great Lakes Credit Union (GLCU) encourages all small-business owners to take advantage of the SBA PPP loans available through the GLCU website. Through this program, GLCU will be able to carry out commitments to help underrepresented businesses and their employees struggling through the many challenges of the pandemic.
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. The most up-to-date SBA PPP details are outlined below:
SBA Loan details
The Payroll Protection Flexibility Act, gives small-business owners more opportunities to take advantage of the program. Adjustments to the program include:
- Loans issued prior to June 5th have a maturity of 2 years. Loans issued after June 5th have a maturity of 5 years.
- Loan payments will be deferred by borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 or 24 weeks).
- No collateral or personal guarantees are required
- Neither the government nor lenders will charge small businesses any fees.
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.
There is no minimum loan amount for the GLCU program, and the maximum is $3,000,000 for first time borrowers. Business who have previously received a PPP loan will have a maximum of $2,000,000 dollars.
To determine if you are eligible for application, please visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-7
To get started with your loan application, please visit: www.glcu.org/SBA.
*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. More information on how GLCU will be participating will be forthcoming. Please refer back to this page for future updates.