Paycheck Protection Program

SBA Paycheck Protection Program 

Maine State Credit Union is offering the SBA Paycheck Protection Program loans to qualifying businesses. We are here to help you as we all work through these challenging times. Information direct from the SBA can be found here. 

Program Summary: 

The Paycheck Protection Program (PPP) began accepting applications on April 3 and is available through June 30, 2020, or until funding is exhausted. The PPP is a forgivable loan that is designed to help businesses continue to make payroll over the next eight weeks. To be eligible, businesses are generally: 

• Businesses with fewer than 500 employees, or businesses that meet certain SBA size standards if more than 500 employees; 
• Businesses, 501(c)(3) non-profit organizations, 501(c)(19) veterans organization, or Tribal business concerns 
• Sole Proprietors, independent contractors, or self-employed persons. 

Loan Detail: 

• Loans are two-year loans with 1% interest rates. No fees will be charged by the SBA or Maine State Credit Union 
• No collateral 
• No personal guarantees 
• Loan payments are deferred for six months 
• Loan is forgivable 

Loan Forgiveness 

Your loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of forgiveness must be for payroll costs), available eight weeks after the loan has been funded. Additional documentation will be required to substantiate the forgiveness amount. 

Application Process: 

Our commercial lenders are here to process your SBA PPP requests. Existing credit union members will need to complete the PPP Application Form and provide supporting information that you use to calculate your loan amount. Please email business at mainestatecu dot org or contact your commercial lender directly for a DocuSign fillable application form.  

Applications from non-members will also be considered. In addition to providing the application and supporting documentation, non-members will be required to open a business share account and business checking account for the funds to be deposited at closing. All fees for the deposit accounts will be waived when done in conjunction with a PPP application. Please email business at mainestatecu dot org to request the DocuSign fillable application form and membership opening documents. 

Supporting Documentation: 

The following are examples of supporting documentation that will be required to substantiate your loan request. Please provide these documents to your lender in conjunction with your application. 

• 2019 Quarterly 941 Employer’s Quarterly Federal Tax Return 
• 2019 Quarterly ME UC-1 Unemployment Contributions Report 
• Documentation to show proof of employees on payroll February 15, 2020 
• Documentation showing health insurance premiums paid under group plans for twelve months prior to application 
• Documentation showing all retirement plan funding for the twelve months prior to application 

Additional Information: 

SBA Paycheck Protection Program Overview 

US SBA Interim Final Rule for CARES Act 

Small Business Administration Disaster Loan Assistance 

Small Business Administration COVID-19 Resources 

U.S. Department of the Treasury – CARES Act Information