Skip to content

Paycheck Protection Program (PPP) Loan Forgiveness Information

Kemba Credit Union members may be eligible for SBA Paycheck Protection Program (PPP) loan forgiveness.

If you’ve received a PPP loan from Kemba, here’s what you need to know:

  • The deposit you’ve received is technically a disbursement from a loan, and payments are deferred for 6 months. 
  • The loan will accrue interest at a rate of 1% during the deferment period.

According to the Small Business Administration (SBA), your entire Kemba Credit Union PPP loan may be forgiven if you use the money for eligible expenses during the 24 week period after you received it. 

  • You’ll be able to apply for loan forgiveness through Kemba Credit Union after the 24 week period.
  • When you apply, you’ll need to provide documentation for your eligible expenses. 
  • After the six-month deferment period, any balance (including any accrued interest) that is not forgiven will become an 18-month term for loans issued prior to June 5 and a 54-month term for loans issued after June 5 with an interest rate of 1% and you’ll need to start making monthly payments.

Apply Now

Application Tips

 

 

What can I use this loan for?

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Please refer to the SBA site for eligible expenses.

How and when do I make payments? Will I get a monthly statement?

No payments are due for the first 6 months, which is the deferment period. If any portion of your PPP loan is not forgiven, you’ll need to start making payments on month seven (7). During the deferment period, you can make principal only payments online. After that, if any portion of your PPP loan is not forgiven, you’ll receive a monthly statement and will need to start making payments on or before the due date on your statement. 

After the deferment period, you will be able to pay the remaining balance of your PPP loan online or through the mail. At this time, we cannot accept PPP loan payments at our branches. During the deferment period, you can make principal only payments online.

What are the terms of the loan?

Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years. All loans have an interest rate of 1%.

Are there any fees for the loan?

There are no documentation or annual fees associated with the loan.

Will my loan be forgiven?

Please refer to the SBA site for more details as they become available.

How do I know how much of my loan will be forgiven?

The amount of loan forgiveness may be up to 100% of the principal amount of your PPP loan plus accrued interest if the money is used for eligible expenses. 

Please refer to the SBA site for more details as they become available.

How do I apply for loan forgiveness?

Kemba will notify you when it’s time to begin your PPP loan forgiveness request, but generally you won’t be able to apply until at least 24 weeks after you received the funds. 

Be prepared to provide documentation for your eligible expenses.

We’ll also update this site with more detailed information on applying for loan forgiveness as it becomes available.