- Coronavirus emergency loans
At Truliant, we believe in the importance of small businesses within the communities we live. We’re working diligently alongside the Small Business Administration (SBA) to provide solutions to help our small business member-owners through this time. We are here for you.
The Coronavirus Aid, Relief, and Economic Security Act (CARES) was signed into law on March 27, 2020, providing approximately $2.2 trillion of fiscal stimulus to individuals, businesses, and hospitals.
Included in the bill were also two types of business loans: Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL).
Paycheck Protection Program (PPP) Loan
UPDATED 6/3/2020: As Truliant works diligently alongside the SBA to provide guidance around PPP Loan forgiveness, this guidance is constantly evolving and can be complex. To unravel some of the complexities, we are sharing some resources and information provided by the federal government which may help to answer any questions you may have. Click here for these resources.
For general information about PPP loans, please see our additional Frequently Asked Questions.
Economic Injury Disaster Loans (EIDL)
The EIDL is for businesses to pay for operational expenses through this uncertain time. This loan is administered by the SBA and includes a $10,000 emergency grant to be made within three days of an application.
These grants do not have to be repaid as long as funds are used for:
- Providing paid sick leave to employees unable to work due to the direct effect of the COVID–19
- Maintaining payroll to retain employees during business disruptions or substantial slowdowns
- Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains
- Making rent or mortgage payments
- Repaying obligations that cannot be met due to revenue losses
EIDLs are working capital loans, up to $2 million, which may be used for fixed debts, payroll, accounts payable, and other bills. These loans include a 10-year repayment at 3.75% (or 2.75% if you’re a non-profit). To qualify, you must be:
- A small business, cooperative, ESOP or tribal business with 500 or fewer employees
- An individual who operates under as a sole proprietorship, with or without employees, or as an independent contractor, or
- A private non-profit or small agricultural cooperative
- Your business must be directly affected by COVID-19
To apply or for more information, please visit the Small Business Administration Portal.
All loans are subject to credit approval and program guidelines.
PPP Loan Forgiveness
How can I request loan forgiveness?
You may submit your request for loan forgiveness to Truliant, and we'll reach out with procedures and applicable documents when the SBA provides that information.
How much of my loan will be forgiven?
You may be eligible for full PPP loan forgiveness if you use the loan for eligible expenses and can provide clear documentation of how the funds were used. Some of the eligible expenses defined currently under the program include:
- Payroll costs, including benefits
- 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 should I use the funds if I want them forgiven?
In order for your PPP loan, and any accrued interest, to be eligible for loan forgiveness, you must satisfy all of the following:
- Funds received from your PPP loan must be used within eight weeks after receiving your first loan disbursement
- 75% of your funds must be spent on payroll costs. The remaining 25% may be spent on rent, utilities, and mortgage interest, if applicable
- If you received Economic Injury Disaster Loan (EIDL) funds from the SBA, you are responsible for understanding how these funds may impact PPP loan forgiveness
What counts as payroll costs?
Payroll costs can possibly include:
- Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee)
- Employee benefits
- State and local taxes assessed on compensation
- 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
What could make me ineligible for loan forgiveness?
- Your loan forgiveness may be reduced if you decrease your full-time employee headcount
- Your loan forgiveness may be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019
- You must restore your full-time employment and any salary level changes made between February 15, 2020 and April 26, 2020 by June 30, 2020
What if I have a different question?
Unfortunately, branch staff and our Member Contact Center will be unable to answer questions about PPP loan forgiveness. However, you can always email us at [email protected] if you have any further questions.
Other Frequently Asked Questions
Is Truliant still offering the PPP loan?
To align with the SBA deadline for PPP applications, TFCU will no longer accept PPP applications. If the SBA extends the application deadline, TFCU will begin accepting applications once guidance has been delivered from the SBA.
I recently submitted a PPP application through Truliant and was notified that my application was not successfully processed. What does this mean?
If your application was not successfully processed during the first round of SBA Paycheck Protection Program (PPP) loan funding we will continue to work with you on your loan request just as soon as the anticipated new funding is made available by the federal government.
While we will not be accepting new applications from members who did not previously apply, we are committed to working with you to facilitate resubmission of your loan application as quickly as possible. A Truliant representative will reach out to you directly to discuss next steps in the process.
Should I go ahead and submit my paperwork or documentation to you while I wait to be contacted?
Please do not send any information or documents to us until you receive more information from a Truliant representative. You should have received an email communication from us with more details regarding next steps in the application process.
Can I apply for the loan with another financial institution?
Yes. There are other financial institutions that are accepting new PPP applications. Please visit the SBA website for additional details and resources that may be available.
Do you know what paperwork/documentation I will need?
You will want to confirm the specific paperwork required with the lending institution facilitating your PPP loan. However, you can find a helpful checklist on the SBA website.
How are PPP loans forgiven?
The loan is forgiven by SBA. For this to occur, required documentation must be submitted showing how the money was spent. The SBA will provide specific guidelines and restrictions that must be met when you apply for your loan.
Where can I get the most up to date information related to PPP Loans in general?
The most accurate and current information can be found on the SBA website.
Are you doing the EIDL loan with the $10,000 advance?
The EIDL is only available through the SBA. Please visit the SBA website to apply. This loan is administered by the SBA.