The United States Small Business Administration’s (SBA) Paycheck Protection Program (PPP) provides emergency grants and a government guaranteed forgivable loan program for small businesses with 500 or fewer employees. First Technology Federal Credit Union (First Tech) recently became an authorized lender for PPP loans, and started submitting applications to the SBA on April 27th. First Tech will continue to submit applications to the SBA as long as they continue to accept them. Should the SBA temporarily discontinue the program, rest assured we will keep your inquiry or application and resume processing as soon as we’re allowed.
While we work to finish the application process please review the following items:
- In order to meet First Tech’s qualifications you must be a First Tech member and the listed owner of a business checking account with the credit union as of March 31, 2020 and your business must have been active on February 15, 2020.
- Once the form is submitted we will reach out to you within 10 business days to update you on the status of our application process or if your business appears to be ineligible.
- Take note of all the required information/documents needed to apply. Please gather these documents before applying. This will make the process quicker for you.
- First Tech will contact you after we hear back on a loan decision, which may take up to 30 days from the date at which an application is submitted.
- Funding available for the PPP is limited and applications are processed in the order in which they are received.
Paycheck Protection Program Loan Inquiry Form
When will you begin offering PPP loans?
First Tech began submitting applications to the SBA on the morning of April 27, 2020 and will continue as long as the program is available.
How will I know when First Tech makes the PPP application available?
Following our receipt of your completed Paycheck Protection Program loan inquiry and our preliminary analysis of your business’ eligibility, you will receive an email with a link to the PPP application.
How do I know if I'm eligible for a PPP loan?
What are the loan amounts?
The maximum loan amount is up to the lesser of $10 million or the sum of 2.5x the average total monthly payroll costs for the prior year.
What are the terms of the loan and interest?
The interest rate is set by the SBA and is currently set at 1%. Terms and conditions are subject to change, but as of April 14, 2020 the terms allow for deferral of payments for up to 6 months with interest accruing during the period, repayment over 2 years, and no collateral or personal guarantee is required. The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must have been used for payroll).
Are there fees on the loan or collateral needed?
The business pays no fees and no collateral is required.
Does applying for the loan trigger a review of my credit?
First Tech will underwrite and assess the creditworthiness of the borrower; however, we will not pull a credit report for the business owners.
Online app the only way to apply?
In order to process all the loans safely and securely, our online application is the only method at this time.
Do I need to upload documents?
Yes, the online application will require you to upload documents. For a list of documentation/information required please see the checklist.
What happens if I’m denied for the loan?
The SBA has other loan options. Unfortunately, First Tech is only authorized by the SBA for the PPP. You will need to apply with another SBA lender to obtain other SBA loan options. Please see their site for additional options.