We’re truly grateful to the 320+ local businesses that trusted us to help secure Paycheck Protection Program (PPP) funds for their businesses. As you receive these funds to help with payroll costs or other business expenses, we want to provide you with the most up-to-date information about the forgiveness process. PPP loan forgiveness is not automatic, and you will need to submit a request to Northern Credit Union.

To date, the Small  Business Association (SBA) and Treasury have identified the following criteria for Paycheck Protection loan forgiveness:

  • Payroll costs, including benefits, as defined by the SBA.  If you can’t maintain current employment levels, salaries and full-time employment levels must be restored by June 30, 2020.
  • Interest on mortgage obligations incurred before February 15, 2020.
  • Rent under lease agreements in force before February 15, 2020.
  • Utilities for which service began before February 15, 2020.
  • Note: No more than 25% of the loan forgiveness amount can come from non-payroll costs.

Loan forgiveness will be reduced if you:

  • Decrease your full-time employee headcount. You have until June 30, 2020, to restore your full-time headcount for any changes made between February 15, 2020, and April 26, 2020.​
  • Decrease salaries and wages by more than 25% for any employee who made less than $100,000 annualized in 2019. You have until June 30, 2020, to restore employee salaries or wages that were reduced by more than 25%.

After the forgiveness period for your PPP loan ends, your loan’s principal amount will be calculated as the original loan amount less any expenses that qualified for forgiveness. Following a 6-month payment deferral period, which begins on the loan’s approval date, the principal amount of the loan, along with accrued interest at 1% per year, must be repaid over the following 18 months.

The SBA and Treasury continue to issue new information about the Paycheck Protection loan forgiveness process.  As additional guidance becomes available, we’ll update the information here.  If you have questions please contact us and we’ll assist you the best we can.

Paycheck Protection Webinar Series

We invite you to attend, whether you’re a member of the Credit Union or not. This information will benefit all business owners who received paycheck protection funds from any financial institution.

To RSVP select the date and time that works for you:

This series will cover:

If you have specific questions that you would like answered, please email us before the webinar. You will also be able to ask questions during the webinar, but providing them in advance ensures we’re prepared to answer questions that may be unique to your situation.



To help understand your obligations, we’ve compiled a list of Frequently Asked Questions including information about repayment if you’re ineligible for loan forgiveness.