The Paycheck Protection Program is a major component of the Coronavirus Aid, Relief, and Economic Security (CARES) Act which provides 100% federally guaranteed loans to small businesses. The loans may be forgiven if small business borrowers maintain their paychecks or restore the number of employees and/or salaries affected by the crisis by June 30, 2020. Review the Paycheck Protection Program Guidelines for additional details. To discuss your individual circumstances and potential solutions, schedule an appointment to contact an SBA Lending expert.
- A small business with fewer than 500 employees
- A small business that otherwise meets the SBA’s size standard
- A 501(c)(3) with fewer than 500 employees
- An individual who operates as a sole proprietor
- An individual who operates as an independent contractor
- An individual who is self-employed and regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501(c)(19) Veterans Organization that meets the SBA size standard
Available Loan Amounts
- Loans can be up to 2.5 x the borrower’s average monthly paycheck costs, not to exceed $2 million
About Loan Forgiveness
A borrower is eligible for loan forgiveness equal to the amount spent on the following items during the 8-week period beginning on the date of the origination of the loan:
- Paycheck costs (using the same definition of paycheck costs used to determine loan eligibility)
- Interest on the mortgage obligation incurred in the ordinary course of business
- Rent on a leasing agreement
- Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
- For borrowers with tipped employees, additional wages paid to those employees
The loan forgiveness cannot exceed the principal.
Your Next Steps
Please gather the below documentation in support of your application:
- Employer’s Quarterly Federal Tax Returns, Form 941 (or if applicable, the annual Form 944), starting with first quarter of 2019.
- 2019 Forms 1099-MISC for independent contractors (for independent contractor applications only).
- Paycheck documentation supporting the requested loan amount which is based upon average monthly Paycheck Costs (including compensation; tips; vacation, parental, family, medical or sick leave; group healthcare coverage; state and local taxes assessed on compensation). This can include internal paycheck records of the borrower certified by the officer of the borrower or sole proprietor; and Paycheck records from a third-party paycheck provider.
- Documentation supporting the person(s) authorized to enter into agreements on behalf of the Applicant (e.g. Articles of Incorporation, Operating Agreement, Corporate Bylaws, Secretary Certificate, Meeting Minutes, etc).
- If you do not currently bank with Dow Credit Union, your application may be subject to additional information requests so we can complete our credit underwriting process and confirm compliance with federal regulatory requirements.
Step 1-Download the Paycheck Protection Program Borrow Application form here.
- Print Application
- Fill out the application
- Scan or take a picture of the filled out application for upload in Step 2
Step 2-Upload it to the application form here.
1 - All applications are subject to review for verification of eligibility to participate in the Small Business Administration (SBA) Paycheck Protection Program (Program) and Dow Credit Union maintains discretion to require additional underwriting or federal regulatory compliance information or documentation, outside of SBA requirements, for due diligence purposes. All applications submitted are not complete until approved by Dow Credit Union and accepted by the SBA. Dow Credit Union cannot guarantee the timing of the submission of your loan to the SBA or that your loan will be approved by Dow Credit Union or accepted by the SBA. Dow Credit Union is not responsible for any false or misleading information provided by an applicant in any application for relief under the Program. Dow Credit Union will not pay Agents for assistance they may provide an Applicant in obtaining a Program loan.