Financial Guidance for Small Businesses
Northwest Federal is here to assist our small business members access federal resources and navigate through your emergency preparedness plans as described in the CDC’s Guidance for Businesses and Employers. Through the Corona Aid, Relief and Economic Security (CARES) Act, the Small Business Administration (SBA) has been providing additional financial assistance for your business.
Paycheck Protection Program (PPP) Second Round Program
Paycheck Protection Program (PPP) – The SBA announced on May 4, 2021 that it has depleted available funding for the program and will no longer be accepting applications. If you have an approved application with Northwest, that will be processed for funding. If you had not yet received approval, we’re unable to submit to the SBA per their instruction.
Important Updates as of March 3, 2021
The SBA determined in a recent update that as long as you, the Borrower, submit the PPP Loan Forgiveness Application within ten (10) months of completion of the Covered Period, the Borrower is not required to make any payments until the forgiveness amount is remitted to Northwest Federal by the SBA.
We at Northwest Federal want to make sure we comply with the SBA and their requirements. We also understand that now, more than ever, sound business decisions are necessary.
Further guidance has also been provided to address the qualifications for loan forgiveness. Please refer to this Paycheck Protection Loan Forgiveness Requirements Guide for detailed information.
Only 60% needs to be used for payroll, down from 75%. The remaining portion still needs to be used for: Rent on Business Building, Mortgage Interest on Business Building and Business Utilities
Any unused portion will be converted to a loan of at least 5 years, extended from 2 years
Due to the high volume of inquiries and SBA guidelines stating financial institutions are not permitted to assist in completing loan forgiveness applications, we ask that you please refer to the complete and detailed instructions that are included with the application.
SBA may provide further guidance, if needed, through SBA notices that will be posted on SBA’s website at www.sba.gov.
Questions on the Paycheck Protection Program may be directed to the Lender Relations Specialist in the local SBA Field Office.
Please send all documentation for forgiveness to CaresActRelief@nwfcu.org.
Main Street Loan Program
Northwest is pleased to announce that we are participating in the Main Street Lending Program. The Federal Reserve established the Main Street Lending Program to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.
We are here to support Businesses located in Washington, DC Metro area. If you are interested in more information, or would like to apply for funding, please contact us at MainStreet@nwfcu.org or visit the Federal Reserve's Main Street Lending webpage.
*Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
**APR = Annual Percentage Rate. Interest will continue to accrue on your existing PPP Loan as it has been since origination.