Members who are owners of qualifying businesses can apply through Pantex FCU.
Small Business Administration Paycheck Protection Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The Paycheck Protection Program is part of the Coronavirus (COVID-19) stimulus package created to assist small businesses through this pandimic and resulting economic downturn.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
Pantex Federal Credit Union members who own qualifying businesses can apply through Pantex Federal Credit Union, which is a participating lender.
Pantex FCU can begin processing loan applications now. The Paycheck Protection Program will be available through June 30, 2020.
Who Can Apply
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Sole proprietors, independent contractors, and self-employed persons. (To apply through Pantex Federal Credit Union, the before mentioned needs to be a PFCU Member.)
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of 1%.
If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply.
Pantex FCU is here to help! This program is obviously new to us too, we might not have all the answers, but we promise to find the answer if we don't! Don't hesitate to call: 806-273-5692.