Paycheck Protection Program (PPP) Forgiveness Guidelines
The SBA extended the PPP Forgiveness Application on Monday, July 6th. It can be viewed here.
Forgiveness eligibility is based on whether the employer maintains or quickly rehires employees and maintains salary levels, with forgiveness reductions if the number of full-time employees declines, or if salaries and wages decrease. Any balance that is not forgiven by the SBA will remain as a loan with a maturity of 5 years and an interest rate of 1%.
We encourage PPP recipients to read the SBA guidelines and maintain receipts, canceled checks, and other documentation reflecting how PPP loan funds were used.
Applying for PPP Loan Forgiveness
Alaska USA is working on a streamlined process to make the submission of your Loan Forgiveness Application as user-friendly and time efficient as possible. Consequently, we are not accepting Loan Forgiveness Applications at this time. Members should monitor the Alaska USA website for information on when and how to submit your application.
We encourage you to visit the SBA.gov website for the most current information on the PPP forgiveness guidelines, and will update our website when more specific guidelines are available.
In order to participate through Alaska USA establishments must have a business account with the credit union.
If you do not have a business account with Alaska USA, please visit any branch or call to open an account prior to submitting an application.
Call 800-525-9095 or visit any branch to qualify for membership and open an account.
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
The amount of forgiveness is calculated as the sum of amounts paid in the 24 weeks following loan origination for payroll, mortgage interest, rent, and utilities.
This loan has a maturity of 5 years and an interest rate of 1.00%.
All payments are deferred for 16 months; however, interest will continue to accrue over this period.
In 5 years. There are no prepayment penalties or fees for early repayment.
No collateral is required.
There is no personal guarantee requirement.
As part of your application, you need to certify in good faith that:
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