American First Credit Union Extends PPP Application to Whittier Chamber Members

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June 16, 2020
Whittier Chamber Members
 
American First Credit Union, would like to extend this opportunity to all Whittier Chamber members provided the applicant either already has or is willing to open up an American First Credit Union business checking or business savings account prior to the PPP loan closing (and provided the SBA continues to have funds available).
 
Here is the link to complete and submit your PPP application:
 
https://lender.loan-street.com/sba-ppp/institution/AMERFIRST/job/LEAD_LENDER
 
 
Applicant Supporting Document Checklist
To confirm the amount of average monthly payroll costs for the year ending December 31, 2019.
 
For eligible payroll costs, the applicant must provide documentation supporting the calculated amount. This should include:
 
 
  *   IRS Forms 940 and 941 - Employer’s Quarterly Federal Tax Return for each quarter in 2019
  *   2019 State Tax Filing Records
  *   2019 Federal Tax Return
  *   1099-MISC (if the applicant is an Independent Contractor)
  *   IRS Form 1040 Schedule C (if the applicant is a sole proprietor)
  *   Payroll Documents for 2019 could include:
  *   Payroll ledgers or summary reflecting each employee’s compensation for 2019.
  *   Additional documentation may be provided to support vacation pay, group health insurance, retirement benefits, or other amounts the applicant has included.
  *   Payroll Summary Report for the period 2/15/2019 to 6/30/2019 with corresponding bank statements - applicable for seasonal companies.
 
Payroll ledgers or summary reflecting each employee’s compensation for 2019.
 
  *   Additional documentation may be provided to support vacation pay, group health insurance, retirement benefits, or other amounts the applicant has included.
  *   Payroll Summary Report for the period 2/15/2019 to 6/30/2019 with corresponding bank statements - applicable for seasonal companies.
  *   If a Payroll Summary Report is not available, Employee Pay Stubs may be provided for the corresponding period with corresponding bank statements, and breakdown of payroll benefits (vacation, allowance for dismissal, group healthcare benefits, retirement benefits).
  *   Certification that all employees live within the United States. If any do not, provide a detailed list with corresponding salaries of all employees outside the United States.
 
For business validation, each applicant must provide the following supporting documentation:
Corporations - Articles of Incorporation and Corporate Bylaws LLCS - Articles of Organization (or Certificate of Formation depending on the state) and Operating Agreement Limited Partnerships - Certificate of Limited Partnership (depending on state) and a Partnership Agreement General Partnerships - Partnership Agreement Sole Proprietorships - Updated Business License
 
New PPP rules approved
 
 
  *   Extends the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness.  Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
 
 
  *   Lowers the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
 
  *   Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
 
  *   Provides a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
 
  *   Increases to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
 
  *   Extends the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
 
  *   In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.
Contact:
Barbara Hernandez, Business Development Sr. Account Executive
bhernandez@amerfirst.org, (562) 237-5073