January 2021 PPP Loan Updates

You qualify to participate in the program if you meet all of the following criteria:

• Business has 300 or fewer employees
• Business must have been in operation as of February 15, 2020
• Applicant must be able to show a 25% gross revenue decline in any 2020 quarter compared with the same quarter in 2019.
  ** Documentation demonstrating proof of revenue loss must be submitted at the time of application. For example, a company–prepared Profit & Loss Statement breaking out 2019 & 2020 revenue by quarter would be adequate to illustrate proof of revenue loss, if a loss occurred. Financial figures must be consistent with a previously filed Tax Return.
• If you received a previous PPP Loan, you must demonstrate that the funds have been (or will be) used for the full amount of your original PPP Loan. Previous PPP Loan funds must be fully disbursed prior to accessing the second round of PPP funding.

For most PPP Loan Applicants, the loan amount is based on 2.5 times the sum of average monthly payroll costs. For applicants in the restaurant and/or hotel industry, the loan amount could be up to 3.5 times the average monthly payroll.

The PPP Loan application is available online now. Aside from the various application forms, which are clearly outlined on the application page, payroll reports, your 2019 Tax Return, and 2020 year–end financial statement will be required. Any other required documentation will be individually requested by someone on our loan processing staff on a case–by–case basis.

Loans will processed for members on our waiting list first, then non–members who joined our waiting list and, finally, new inquiries received after the waiting list was closed. Applications will be reviewed by our processing department for completeness, and a loan processor will request additional information from incomplete applications via phone or email.

Upon approval, applicants will receive loan documents to be signed via DocuSign and an email reminder to execute the documents. After we receive and review the executed loan documents, it may take approximately 2 - 4 business days to fund a loan to an existing First Service business account.

** Important: Because additional information may be required during the future forgiveness process, please be sure to keep a detailed record of how all loan funds were spent.

You don’t have to be a member to apply however, the First Service PPP Loan Department will begin assisting business owners that were First Service members as of December 31, 2020 first, followed by new members and/or those that have not yet established their membership account. Any/all applicants must established a membership in order to qualify for a PPP Loan or any Credit Union lending program.

The last day to apply for a PPP loan is May 31, 2021, or when all funds allocated to the program have diminished, whichever comes first.