Paycheck Protection Program

Solutions for Small Businesses

Point West is no longer accepting applications due to the completion of the PPP program on 6/30/2020. For additional loan options for your business, please visit our Business Loan page or contact us at [email protected].

What is the Payment Protection Program (PPP)?

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. By policy, the maximum PPP loan amount that can be approved by Point West will be $49,999.99.

The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and
    utility costs over the 8 week period after the loan is made; and
  • Employee and compensation levels are maintained.

Who Can Apply for a PPP Loan?

All businesses – including nonprofits, veterans organizations, Tribal business
concerns, sole proprietorships, self-employed individuals, and independent contractors – with
500 or fewer employees can apply. Businesses in certain industries can have more than 500
employees if they meet applicable SBA employee-based size standards for those industries (click
HERE for additional detail)

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel
and food services industries (click HERE for NAICS code 72 to confirm); or (2) that are
franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial
assistance from small business investment companies licensed by the SBA. Additional guidance
may be released as appropriate.


What can I use these loans for?

  • 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.

What counts as payroll costs?

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each
    employee);
  • Employee benefits including costs for vacation, parental, family, medical, or sick leave;
    allowance for separation or dismissal; payments required for the provisions of group
    health care benefits including insurance premiums; and payment of any retirement
    benefit;
  • State and local taxes assessed on compensation; and
  • For a sole proprietor or independent contractor: wages, commissions, income, or net
    earnings from self-employment, capped at $100,000 on an annualized basis for each
    employee.

How much of my loan will be forgiven?

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan.

You will also owe money if you do not maintain your staff and payroll.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time
    employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and
    wages by more than 25% for any employee that made less than $100,000 annualized in
    2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and
    salary levels for any changes made between February 15, 2020 and April 26, 2020.

 

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