Paycheck Protection Program Loans

Approved Paycheck Protection Program (PPP) Loans are now being funded!  Applications are still being accepted by City of Boston Credit Union.  SBA is authorized to guarantee loans under the Payroll Protection Program through March 31, 2021, but funds are limited so don't delay!

NEW! Additional program changes make access to PPP more equitable, learn more.

In late December 2020 the Economic Aid Act authorized the U.S. Small Business Administration (SBA) to guarantee an additional round of loans for small business through the Paycheck Protection Program (PPP).  We are happy to announce that City of Boston Credit Union has been authorized by the SBA as a certified PPP lender and we are now accepting loan applications from eligible small businesses that could potentially be forgiven. 

First Draw borrowers: If you are a small business owner and did not borrow in earlier rounds of the Paycheck Protection Program CBCU can accept and process your First Draw application.  Please download the official SBA Form 2483 Paycheck Protection Program Borrower Application, complete and either email to PPP@cityofbostoncu.com or drop off at any branch location

Second Draw borrowers: If your small business previously received a First Draw PPP loan you may be eligible for a Second Draw PPP loan if:

  • You will or have used the full amount of your First Draw PPP loan for authorized uses;
  • You have no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  • Please download the official SBA Form 2483-SD Paycheck Protection Program Second Draw Borrower Application, complete and either email to PPP@cityofbostoncu.com or drop off at any branch location.

Terms for both the First and Second Draw PPP

  • Maximum loan amount of up to 2.5 times average monthly payroll or $2 million, whichever is less. For borrowers assigned an NAICS code that begins with 72 (Accommodations and Food Services industry—the maximum loan amount is up to 3.5 times average monthly payroll or $2 million, whichever is less)
  • PPP loans are forgivable in full if at least 60% of the proceeds are used for payroll costs, with the remaining amount used for program-permissible expenses. Visit the SBA website for authorized expense uses.

New Changes as of March 3, 2021

Among the most impactful changes are:

  • If you are a non-citizen, you can use your ITIN.
  • If you are a sole proprietor and completed a Schedule C on your tax return, you can now use Line 7: Gross Income to calculate the approximate amount you will qualify to apply for.
    • If you have NOT yet applied for a Paycheck Protection Program (PPP) Loan, take the following steps:
      • Calculate the amount to apply for:
        • If you are a sole proprietor with a 2019 or 2020 tax return AND NO employees other than yourself, divide Line 7 of your Schedule C by 12 and multiply times 2.5. The resulting figure will be the approximate amount you would qualify to apply for. Note: If Line 7 divided by 12 is greater than $8,333.33, based on SBA guidelines this is the maximum amount you may apply for, even if your calculation is higher. 
        • If you are a corporation/LLC with a 2019 or 2020 tax return, to find your amount of PAYROLL, check Line 26: Salaries and Wages, then divide that PAYROLL figure by 12 and multiply times 2.5. The resulting figure will be the approximate amount you would qualify to apply for.
        • Please download the official SBA Form 2483-C for Schedule C filers, complete and either email to PPP@cityofbostoncu.com or drop off at any branch location.
Disclaimer
City of Boston Credit Union is not responsible for delays or eligibility issues.  Eligibility requirements are mandated by the government.   Must be eligible for City of Boston Credit Union membership to apply. Due to high volumes, processing times may be longer than usual. Loans are subject to a credit review, approval, and the availability of funds.  Eligibility requirements and guidelines are subject to change.  Forgiveness is not guaranteed, funds must be spent according to the program rules.