GLCU SBA PPP Loans

NewsJanuary 21, 2021

Bannockburn, Illinois – Chicagoland’s Great Lakes Credit Union (GLCU) encourages all small-business owners to take advantage of the SBA PPP loan by submitting your application through the GLCU website. Through this program, GLCU will be able to carry out commitments to help underrepresented businesses and their employees struggling through the many challenges of the pandemic.

“Understanding the challenges faced by small businesses not only nationally, but in the areas that GLCU serves, we are proud to work with these business owners via the PPP loan program.  We have had the privilege of working with many of our local businesses as they navigate the current environment and look forward to assisting many more.” – Fred Campobasso, Chief Lending Officer

This loan program was designed to help small businesses to stay on their feet and keep their workers on the payroll throughout the COVID-19 pandemic. The most up-to-date SBA PPP details are outlined below:

SBA Loan details

The Payroll Protection Flexibility Act, gives small-business owners more opportunities to take advantage of the program. Adjustments to the program include:

  • Loans issued prior to June 5th have a maturity of 2 years. Loans issued after June 5th have a maturity of 5 years. 
  • Loan payments will be deferred by borrowers who apply for loan forgiveness until SBA remits the borrower’s loan forgiveness amount to the lender. If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 or 24 weeks).
  • No collateral or personal guarantees are required.
  • Neither the government nor lenders will charge small businesses any fees. 

Understanding the SBA’s PPP loan forgiveness

One of the most significant benefits of the SBA PPP loan is the ability of the borrower to take advantage of loan forgiveness. To qualify, payroll costs must be 60% or more of the approved loan amount. A written request for loan forgiveness is required, including the number of full-time equivalent employees, employee pay rates, your payments on an eligible mortgage or lease, and payments on utilities.

No collateral or personal guarantees are required, and neither the government nor lenders (such as GLCU) will charge small businesses any fees. Loan forgiveness eligibility is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Loan forgiveness can be reduced or denied if full-time headcount declines, or if salaries and wages decrease.

Borrower limitations

There is no minimum loan amount for the GLCU program, and the maximum is $3,000,000 for first time borrowers. Business who have previously received a PPP loan will have a maximum of $2,000,000 dollars.

For more information about SBA PPP Loans or to apply, please visit www.glcu.org/SBA.

About Great Lakes Credit Union

Founded in 1938, GLCU continues to be a growing staple in our communities. As a not-for-profit financial institution, chartered by the State of Illinois and insured by the NCUA, we are guided by a dedicated volunteer Board of Directors and are proud to serve more than 83,000 members with over $1 billion in assets. We are headquartered in Bannockburn, IL and now have 12 branch locations and more than 170 ATMs locally. GLCU also belongs to the CO-OP Shared Branching Network. Members can access accounts nationwide at over 5,600 institutions with thousands of locations in 50 states, and at any of their 30,000 surcharge‐free CO‐OP ATMs.  All 200+ employee-owners pride ourselves on building lifelong relationships with our member-owners and providing them with financial education during all life stages. Learn more at glcu.org

 

« Back to Articles