SBA Paycheck Protection Program (PPP)
The Paycheck Protection Program, part of the CARES Act, provides capital to small businesses impacted by Covid-19 to help meet short term operating expenses. As a SBA Preferred lender, Central Minnesota Credit Union is excited to provide access to this program to members and non-members.
- The Paycheck Protection Program provides small businesses with funds to pay up to 24 weeks of payroll costs including benefits.
- Funds can also be used to pay interest on mortgages, rent, and utilities
- Up to 100% of loan amount may be forgiven if program requirements are met
SBA PPP loans are serviced through Central Minnesota Credit Union. This means that all correspondence will be through Central Minnesota Credit Union, NOT SBA. Please be on alert for phishing attempts by fraudsters. There have been reports of applicants receiving fake correspondence from the SBA. If you have any questions regarding communications about your accounts, please contact CMCU directly.
Important PPP Information
Interest Rate: 1.00%
Loan Term: 5 years
Loan Amount: Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
Loan Payments: Two options to consider:
- Payments are deferred until the forgiveness amount is remitted to CMCU, or 10 months after the end of the 24 week disbursement period.
- All payments are deferred until either CMCU receives a forgiveness payment for your loan from the Small Business Administration (SBA); or 17 months from the loan date.
PPP Frequently Asked Questions
SBA 7(a) Program Loans
- Loan funds are available for almost any purpose, including working capital.
- For a limited time, SBA will pay six (6) monthly payments on new loans through the CARES Act.
- CMCU is a designated Preferred Lender through SBA.
*Membership qualification required. Other restrictions may apply. Ask for details.
SBA's Economic Injury Disaster Loan Program (EIDL)
The loans are designed to assist businesses who suffered working capital losses due to the coronavirus pandemic. Proceeds can assist with making fixed debt payments, payroll, Accounts payable, lease payments, insurance etc.
Applications for the loans are made directly to SBA, not CMCU. Loan payments are also made directly to SBA. Learn more about the program by clicking here.
- $2,000,000 Maximum Loan Amount (Including affiliate entities)
- 3.75% APR (Non-Profit: 2.75% APR)
- Up to 30 year term - based on individual credit approval
- No payments for the first 11 months
- No collateral required for loans of $25,000 or less