September 03, 2020 — Chaffey Federal Credit Union (CFCU), which has been serving the Inland Empire and San Gabriel Valley educational and business communities since 1964, is pleased to announce that it has provided 84 member businesses with Payroll Protection Program (PPP) loans totaling more than $3.05 million. Launched on April 3rd by the U.S. Small Business Administration, PPP loans were intended to help small businesses impacted by COVID-19 to keep their workers employed. The program ended on August 8, 2020.
“CFCU is pleased that we have been able to help dozens of small businesses in our community to secure PPP loans,” said Kevin Posey, CEO of CFCU. “In the midst of the pandemic turmoil, our Chaffey team dove into the program as it was launched and worked tirelessly to understand all of the moving parts and intricacies of the application requirements in order to streamline the process and create a less daunting task for our borrowers. We sought to be a direct link with the borrowers and the Small Business Administration (SBA) and committed to providing personal service in order to help business owners, a task we found larger banks were often unwilling or unable to execute.”
Posey noted that CFCU aimed to help as many local businesses as possible who needed help and opened accounts for non-member businesses in order to move forward on PPP loans.
Following is a quote from Terry Chase, Ph.D, CEO of Health Service Alliance, a non-profit community health center in Chino, who was a PPP loan recipient via CFCU:
“Chaffey gave us the personal attention necessary to get this funding during the first round of distributions. We went to two other financial institutions first and were waiting in line. If we did not reach out to Chaffey, our funding would have been significantly delayed. The PPP loan helped us keep everyone employed and our health center open. The funds also allowed us to buy the PPE we needed to take care of COVID patients and to remain available as front line responders testing and treating COVID patients.”
Below are a few details on how the PPP worked:
- Loans provided with no fees with a 5-year term and interest rate of 1%
- Funds 100% forgivable as long as used accordingly:
- 60% of the loan is allocated toward payroll costs including benefits
- 40% of the loan is allocated toward rent, utilities (gas, water, electricity, telephone or internet), or mortgage interest
- Eligible businesses:
- Any small business that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veteran’s organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of 500 employees or that meets the SBA industry size standard if more than 500
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Sole proprietors, independent contractors, and self-employed persons