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First Draw Paycheck Protection Program Loan Information

The Paycheck Protection Program ended on May 31, 2021.

About First Draw Paycheck Protection Program Loans

The Paycheck Protection Program was created to help small businesses pay employees and other expenses during the COVID-19 pandemic. The program has been updated several times since it was initially available, with the most recent legislation providing additional funding for First Draw PPP loans for borrowers who HAVE NOT received a PPP loan before, and Second Draw PPP loans for borrowers who HAVE received a PPP loan. The information below refers to First Draw PPP loans.

First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. 

Full Forgiveness Terms: First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.

Loan Amount Increase: Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may:

  • Reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or
  • Under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.
  • Royal Credit Union is waiting on additional SBA guidance for these First Draw PPP loan amount increase applications. We will not be able to process loan amount increase applications until at least January 25, 2021.

Preparing To Apply?

Please follow the steps below to help prepare you for your online PPP loan application with Royal Credit Union. 

Step 1: You Must Be A Royal Business Member

  • You must be a Royal Credit Union Business Member to apply for a PPP loan with Royal. If you aren't already a Business Member, you must open a business savings account first.

Step 2: Determine Eligibility & Review The First Draw Application Form

  • Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees - including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors - can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply.
  • Your business must’ve been in operation on February 15, 2020 and has not permanently closed.
  • Review the Paycheck Protection Program Borrower Application Form 2483 to determine if your business is eligible and can make all required Representations, Authorizations, and Certifications.

Step 3: Determine Maximum Loan Amount & Gather Required Documents

Step 4: Complete “Draft” Of First Draw Application Form

  • Royal will only be accepting applications through our online application process.  By completing a “draft” in advance, you will be prepared to transfer that information into our online application forms. This will help ensure a timely submission and review by Royal and the SBA. 
  • Royal is not able to complete or prepare your loan application.

Step 5: Do You Have Additional Questions About PPP Applications & Documentation?

Ready To Apply?

Here is an overview of what to expect during our online PPP loan application process. Royal will provide email communications to borrowers as applications are processed.

  1. You will request access to Royal’s PPP loan application by using the “apply now” link that will be available on this webpage once our online application is available.
  2. You will complete our online PPP loan application and upload all required documents.
  3. Royal is required to review your submitted application and documentation to ensure it meets SBA guidance. We will contact you if additional information is required.
  4. Royal will submit the application to the SBA electronically for their approval.
  5. After your application has been approved by the SBA, we follow their instructions to start the process to fund your loan request. 
    • We will reach out to you for anything else we need to prepare your PPP loan documents.
    • Then, we will send an email request to electronically sign the loan documents and fund your loan into your account at Royal.

For More Information

The information on this page is based on SBA’s recently released Interim Final Rule for First Draw PPP Loans, which provides additional details on the program. To learn more, please review the US Treasury CARES website and the SBA Paycheck Protection Program webpage.