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Paycheck Protection Program Resource Center

ECCU is committed to partnering with you in ministry and working diligently to help you accomplish your financial goals. The Small Business Administration (SBA) has been authorized to approve additional PPP loans through the latest federal relief legislation (Economic Aid Act). We are participating in the second round of PPP lending through our partners. The application is now open. Please do not hesitate to reach out to your Relationship Manager should you have any additional questions or need assistance.

Application Resources

We know you likely have questions regarding the PPP process, and we're here to help. Take a look at the FAQs below for some of the most common questions regarding the PPP application process.

PPP Application Resources and FAQs

Can an existing PPP borrower apply for a “second draw” under the most recent legislation?

Existing PPP borrowers may apply to receive a “second draw” PPP loan if:

  • They have used all of their first loan (or will by the time of disbursement of the second loan)
  • Have no more than 300 employees
  • Can demonstrate at least a 25% reduction in revenue in any calendar quarter in 2020 compared to the same quarter in 2019

What is the PPP and how does it affect religious organizations?

ECCU has found the following resources to assist you in learning more about the Paycheck Protection Program and how it affects religious organizations.

Does my organization need to be an ECCU member to apply?

The Paycheck Protection Program application is open to members and non-members. If your organization is not yet an ECCU member and you want to learn more about other banking needs, go to www.eccu.org/ministry.

How should my non-profit organization appropriately answer the percent of ownership question when there is not an “owner?”

May vary for your organization:

  • You may indicate 100% ownership.
  • Please consult your attorney or CPA for your specific organization.

What documents should I submit in the application for my non-profit?

  • You should provide detailed payroll documentation by employee and your 990 if you have it. You may need to request this from your payroll vendor if you are not doing payroll in-house.
  • Copy of government ID (front and back)
  • Copy of organization documents (Articles of Incorporation, DBA, etc.)
  • Be sure to save your file as a PDF before submitting.

How do I calculate my payroll costs?

  • Your payroll costs should include: salaries/wages, retirement benefits, state and local taxes, and vacation earned, group health insurance benefits, including paid sick/parental leave, medical and insurance premiums. For further information, please consult with a licensed Accountant or CPA.
  • An available resources that can assist you with calculating your payroll costs: Vanderbloemen

How can the loan be forgiven? What happens if my organization borrows the funds and it wasn’t used for original intent?

As part of the latest legislation, the list of allowable and forgivable expenses has been expanded. This applies to new and existing PPP loans for which a borrower has not yet received forgiveness. For further details, please visit the www.SBA.gov.

For borrowers that have already applied for forgivness, prior guidenlines apply including the requirement to spend at least 60% of the funds on payroll to receive full forgiveness. The other 40% may be used on eligible costs. These costs include certain mortgage expenses, rent and utility payments.

What should I expect in the application and funding process?

  • If you received a previous loan through Kabbage, you may apply for a second draw through ECCU's partner, K Servicing.
  • Here is a list of items you’ll need to apply.
  • If you are seeking a first time PPP loan or received a PPP loan through someone other than Kabbage in the past, you may apply for the first draw through Biz2Credit.
  • Because this is a loan application, be prepared to answer questions to validate your identity.
  • To receive your funds, you will need to provide information to connect the bank account you want the funds sent to. You can set up a direct deposit using your online banking credentials or your bank account number and routing number.
  • NOTE: Your application is not linked to your ECCU account(s) except if you set up funding to your ECCU account.

Will ECCU be servicing my Paycheck Protection Program loan?

ECCU has estabished partners to help organizations with the PPP process. If you received a previous loan through Kabbage, K Servicing will continue to service your PPP application, process and loan. If you are applying for the first draw, Biz2Credit will facilitate your PPP application process and loan. NOTE: Biz2Credit will notify you of any changes in loan servicing.

Loan Forgiveness Resources

Working with our relationship management team, ECCU’s partner has helped many of our members apply for and receive Paycheck Protection Program (PPP) loans. If you received a PPP loan, now is the time to begin preparing your loan forgiveness application. Our partnership continues, and we’re here to help you with your application.

PPP and Loan Forgiveness Guidelines Have Changed

The Small Business Administration’s (SBA) PPP loan forgiveness guidelines have changed. Changes range from how much time you have to spend the funds and how you spend them; to when and whether you need to rehire laid-off staff or fill vacant positions. Please continue to check back for updates regarding the forgiveness requirements for round two.

Start Gathering Your PPP Loan Forgiveness Application Documents

Since the time to submit your PPP loan forgiveness application (which you must do through our partner, the lender servicing your loan) has arrived, you’ll want to gather documents that verify the following:

  • The number of employees on your payroll, their pay rates, the IRS payroll tax filings, and state income, payroll and unemployment insurance filings
  • Payments on covered mortgage and lease obligations
  • Payments for utilities

You’ll also need to certify that the documents you submit are true and correct and that the amount being considered for forgiveness was used according to PPP guidelines.

PPP Loan Forgiveness Resources and FAQs

How does PPP loan forgiveness work?

Your PPP loan will be forgiven if:

  • The loan proceeds are used to cover payroll costs, eligible mortgage interest, rent and utility costs over the 24-week period (Covered Period) after the loan is disbursed; and
  • Employee and compensation levels are consistent with pre-COVID figures.

How much of my PPP loan will be forgiven?

The amount of your loan that is forgiven is equal to the amount you spend toward eligible expenses during the 24 weeks following loan disbursement, including:

  • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
  • Interest on mortgage obligations incurred in the ordinary course of business and in place before February 15, 2020
  • Rent on a leasing agreement in place before February 15, 2020

Forgiven amounts will not be considered a cancellation of debt (COD) for federal tax purposes, meaning business owners will not need to claim PPP loan amounts in their 2020 income tax filings. Also, no tax deductions will be allowed for expenses that are forgiven under PPP.

What happens if all or some of my funds are not forgiven?

Loan amounts not forgiven will become a two-year loan (or five-year if approved after June 4) with a 1% interest rate and no prepayment penalties or fees. Payments are deferred for the first six months after the loan is disbursed.

What is my Covered Period?

The covered period starts on the date your PPP loan is disbursed and runs for up to 24 weeks (based on how long of a period you want to use to calculate your forgiveness amount) or until December 31, 2020 (whichever is first).

What if my payroll cycle doesn't line up with my Covered Period?

You can calculate your payroll costs based on the period beginning on the first day of the first pay cycle following your loan disbursement date (for pay cycles that are biweekly or more frequent). This is referred to as the Alternative Covered Period. All other eligible costs must be calculated based on the date your PPP loan was disbursed.

How do I apply for loan forgiveness?

You must submit an application for forgiveness through the lender that is servicing the loan and provide:

  • Documentation verifying the number of employees on payroll and pay rates, including IRS payroll tax filings and state income, payroll and unemployment insurance filings
  • Documentation verifying payments on covered mortgage obligations, lease obligations and utilities
  • Certification that documentation is true and correct, and that the amount that is being considered for forgiveness was used according to the PPP’s guidelines for use

The lender has 60 days from receipt of a completed application to submit a decision to the SBA.

You’ll find the SBA’s PPP latest loan forgiveness application here.

What forms do I need to verify payroll costs?

You’ll need to provide documentation verifying the eligible cash compensation and non-cash benefit payments during the covered period, including:

  • Bank account statements or third-party payroll-service provider reports documenting employee compensation
  • Tax forms (or equivalent third-party payroll service provider reports) for the periods that overlap with the Covered Period or the Alternative Payroll Covered Period:
    • Payroll tax filings reported, or that will be reported, to the IRS (typically, Form 941); and
    • State quarterly business and individual employee wage reporting and unemployment insurance tax filings reported, or that will be reported, to the relevant state
  • Payment receipts, canceled checks or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that the borrower included in the forgiveness amount (PPP Schedule A, lines (6) and (7)).

What is included in payroll costs?

For a business with employees (including furloughed employees), payroll costs cover:

  • Salary, wages, commissions, bonuses or similar compensation up to $100,000
  • Payment of cash tips or equivalent
  • Vacation, parental, family, medical, or sick leave
  • Allowance for dismissal or separation
  • Group healthcare benefits (including insurance premiums)
  • Retirement benefits
  • State or local tax assessed on employees’ compensation (capped at $100,000)

What expenses do not count as payroll costs?

Payroll costs do not cover:

  • Taxes imposed or withheld under chapters 21, 22, and 24 of the Internal Revenue Code (IRC) during the lending period
  • Sick leave wages allowed under section 7001 and 7002 of the Families First Coronavirus Response Act (FFCRA)
  • Family leave wages allowed under section 7003 and 7004 of the FFCRA
  • Compensation for employees who live outside of the U.S.
  • Annual wages over $100,000 for any individual employee

What counts as an employee for forgiveness purposes?

Any employee who is full-time, part-time, furloughed, or on a paid internship, and yourself if you receive a W-2 with amounts withheld for taxes.

Do not include freelancers, independent contractors, unpaid interns, unpaid volunteers or employees who live outside of the US.

What if my employees do not want to come back?

The SBA and Treasury have issued preliminary guidance on this issue. If you laid off an employee, then offered to rehire the same employee for the same salary or wage and number of hours, but they declined the offer, your loan may still be forgiven for the full amount.

If this instance occurs with your business, the SBA and Treasury have set expectations that these interactions must be well-documented. You “must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented.” While we await final guidance from the SBA, they also note that “employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.”

Information current as of 01/25/2021. For complete information on the Paycheck Protection Program go to www.sba.gov.

*In connection with American Express’s acquisition of Kabbage, Kabbage established K Servicing to maintain consistency in the way you manage your existing loans. Any Kabbage Funding loans or PPP loans taken prior to October 16, 2020—as well as new PPP loans—will be managed by Kabbage, Inc. through K Servicing.