As community businesses looked for ways to keep going in spite of shut-downs or diminished productivity, Elko Federal Credit Union (EFCU) was busy helping provide much-needed cash to small businesses through the government Paycheck Protection Plan (PPP) loan program. EFCU loaned over $3 million to area small businesses until program funding ran out.
The extremely low-cost Paycheck Protection Plan loans are designed to help businesses cover their payroll and other expenses during the COVID-19 pandemic. The loans may be completely forgivable if the business borrower retains and compensates its workers, up to $100,000 on an annualized basis each employee, for at least eight weeks. Payments for business borrowers are deferred for six months. As an SBA lender, EFCU was able to accept applications directly.
“These loans are an incredible lifeline for our communities’ small businesses,” said EFCU CEO John Kelly. “For many small businesses, these loans may make the difference between surviving the coronavirus pandemic and closing their doors for good.”