Payment Protection Program

Paycheck Protection Program (PPP)

Small Business Paycheck Protection Program

The Paycheck Protection Program under the CARES Act provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities. 

Program funds are limited. We do not guarantee that applications will be processed and submitted before Program funding is no longer available. There is no cost to you to apply for a Program loan. Applying with Department of Commerce FCU does not limit you from applying with other lenders and/or platforms.

Eligibility Through DOCFCU

To be eligible for a Payment Protection Program loan through DOCFCU, you must be a member. Check membership eligibility requirements here.

Benefits of the Paycheck Protection Program

  • Low-Interest Rate with 2-Year Term
    All loans have a 1% APR for the entire two-year term.
  • Payment Deferment
    Loan payments will also be deferred for six months. Interest will accrue during this time.
  • Fully Forgiven Loan
    Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). No collateral or personal guarantees are required.
    Must Keep Employees on the Payroll—or Rehire Quickly.
    Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

All Small Businesses Eligible

Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.

Loan Amount Limit

We will determine the loan amount based upon your application and a review of your payroll costs from last year.  Loan amounts can be for up to 2.5X your average monthly payroll costs, capped at $100,000 annualized for each employee. Please review the Small Business Administration Payment Protection Program for more information on how to calculate your qualifying loan amount.

Documents Needed to Submit Application

While guidelines are still being finalized by the Small Business Administration, the checklist below represents the list of documents we believe are necessary to process your loan request.  Additional information may be required. It is our policy to begin processing Payment Protection Program loan applications only after all the documentation below has been provided.

Download the list here. 

  • Color copy of government issue ID of all owners with 20% or greater ownership. (Driver’s License, Passport, etc.) – Front & Back
  • Any secondary form of government ID (Passport, Government ID, Military ID, etc.) of all owners with 20% or greater ownership stake.
  • Social Security Numbers for all business owners

Examples include:

  • Articles of Incorporation, Operating Agreement, Partnership Agreements, Certificate of Existence, State LLC Agreement, Certificate of Formation, Bylaws, etc.
  • A list of Affiliated Business – all entities owned by any 20% or more owner of the business.
  • Certificate of Beneficial Ownership Form
  • Copies of current state or federal business licenses (if applicable)

If you have Employees

  • 2019 IRS 1040 Schedule C*
  • 2019 IRS Form W-3
  • 2019 IRS Form 940
  • 2019 & most recent IRS 941
  • 2019 W-2’s for all employees

If you do NOT have Employees:

  • 2019 IRS 1040 Schedule C
  • Substantiation of Self-Employment (ex. 2019 IRS 1099-MISC for Independent Contractors)

* If you have not completed 1040 Schedule C for 2019, fill it out and compute the value for line 31. We cannot accept this form for previous years. If line 31 on the 1040 Schedule C is zero or negative, your business is not eligible for a PPP loan.

The loan amount will be determined by calculating a monthly average of payroll costs as defined by H.R. 748 (CARES Act).  The following information is required over a trailing 12-month period “before the date on which the loan is made” as stated in the Act.  Please provide the following information so we can calculate the total payroll costs.  Most payroll services such as ADP will provide this information:

  • List of employees with salary, wage, commission, or similar compensation
  • Payment of cash tip or equivalent
  • Payment for vacation, parental, family, medical, or sick leave
  • Payment of health care benefits including invoices
  • Payment of employee benefits (disability, group life insurance, etc.)
  • Payment of any retirement benefits (401k, SEP IRA, etc.) – Contribution reports.
  • Payment of state or local tax assessed on the compensation of employees (i.e. unemployment insurance benefits aka SUTA or SUI)
  • Quarterly payroll tax filings (i.e. IRS Form 941 and state equivalents including SUTA filings) for all of 2019 and most current quarter of 2020 (once available).
  • Any other documentation that can substantiate your payroll expenses
  • Bank Statements or Book of Record to establish you were operating effective February 15th, 2020
  • Copy of Business Lease/Mortgage & most recent monthly statement
  • Copy of Utility Bills
  • 2019 & 2020 YTD Profit & Loss Statements
  • Most recent statement from your outstanding Economic Injury Disaster Loan

Frequently Asked Questions About Payment Protection Program

To view the full list visit Frequently Asked Questions. 

We will contact you within 2-3 business to confirm receipt of your complete application and required documentation. Our goal is to approve all loans within 10-14 business days of receiving the complete application.

You should use the proceeds from these loans on your:

  • Payroll costs, including benefits;
  • Interest on mortgage obligations, incurred before February 15, 2020;
  • Rent, under lease agreements in force before February 15, 2020; and
  • Utilities, for which service began before February 15, 2020.

All payments are deferred for 6 months; however, interest will continue to accrue over this period.

As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

We're here to help.

Get in touch with us if you have any questions regarding the Small Business Payment Protection loan application process.