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Freedom First Credit Union

Small Business Administration

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Paycheck Protection Program (PPP)

Updated: January 12, 2021

The U.S. Small Business Administration (SBA), in accordance with the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, reopened the Paycheck Protection Program (PPP) on January 11, 2021. First Draw PPP Loans are available starting Monday, January 11 and Second Draw PPP Loans starting Wednesday, January 13.

Changes to the program include:

  • Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan (e.g. small businesses, with decreased gross receipts, who used their First Draw PPP fully and appropriately);
  • Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount;
  • PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks;
  • PPP loans may cover additional expenses: operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
  • All eligible PPP applications are welcome; however, borrowers must first join the Credit Union before their loan can be processed;
  • PPP loans are now available to 501(c)(6)s, housing cooperatives, direct marketing organizations, among other types of organizations; and
  • PPP loans now provides increased flexibility for seasonal employees.

The new guidance released includes:

For more information on SBA’s assistance to small businesses, visit or This information and more is available at

Call (540) 389-0244 for more information.

Updated: September 9, 2020

Freedom First is pleased to offer our business members access to the Small Business Administration’s Paycheck Protection Program (PPP) made possible by the Coronavirus Aid, Relief, and Economic Security Act.

In order to be eligible to apply for a Paycheck Protection Loan through Freedom First, the business must have opened their membership account with the credit union prior to April 1, 2020.

How to Apply

To take advantage of this program, Freedom First business members have two options:
1.  Log into your online business banking platform, where you will be provided with an application link.
2.  Call our Contact Center at (540) 389-0244 (local) or (866)389-0244 (toll free) to request a link to our application site.

Loan Information

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.

SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.

You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.

Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.

Who Can Apply

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.

Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.

If applying through Freedom First for this loan, the business must have opened their membership account with the credit union prior to April 1, 2020.

Loan Details & Forgiveness

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 75% 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.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

Still have questions about the PPP?

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