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Paycheck Protection Program

The Coronavirus Aid, Relief, and Economic Security Act sets aside funds for small business loans to provide economic relief in 2020.

Available while program funds last.

We are no longer accepting applications for the PPP. The deadline to submit an application through Alaska USA was 5:00 p.m. AST, Wednesday, August 5.

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.

Frequently Asked Questions

Who can apply?

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. 

 

What if I am not a member of Alaska USA?

Call 800-525-9095 or visit any branch to qualify for membership and open an account. 

 

What can I use the loan for?

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

 

How much can I qualify for?

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.

What about loan forgiveness?

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.

What will my interest rate be?

This loan has a maturity of 5 years and an interest rate of 1.00%.

When do I need to start paying interest on my loan?

All payments are deferred for 16 months; however, interest will continue to accrue over this period.

When is my loan due?

In 5 years. There are no prepayment penalties or fees for early repayment.

Do I need to pledge any collateral for these loans?

No collateral is required.

Do I need to personally guarantee this loan?

There is no personal guarantee requirement.

What do I need to certify?

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 40% 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.

Alaska USA is no longer accepting new applications for the PPP program. 

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