CooPACA begins receiving applications for PPP second round
The Arecibo Savings and Credit Cooperative (known as CooPACA in Spanish) has started to receive loan applications for the reopened Payroll Protection Program (PPP) that is administered by the U.S. Small Business Administration.
The credit union is also processing applications for forgiveness of first round of PPP loans, it confirmed.
CooPACA has already processed 250 loans as part of the first round of the federal program, benefiting more than 700 employees in 28 municipalities on the island.
“Our participation in this program seeks to help protect the operation of our small and medium-sized businesses, as well as other eligible entities from the economic havoc caused by the pandemic,” said CooPACA Executive Chairman William Méndez-Pagán.
Allowed uses for PPP funds include payroll expenses, rent payments, mortgage interest, utility payments, and COVID-19 protection expenses. The deadline to apply for the program is Mar. 31.
These loans are eligible for partial or total forgiveness, so Méndez-Pagán urged businesses to verify their eligibility and initiate the application process. The application can be filed via email or in-person with a previous appointment at any of the cooperative’s 14 branches.
Apart from the PPP, CooPACA offers other SBA-backed credit facilities, such as 7ª and 504 loans that have also been impacted by both the CARES Act and the more recent Economic Aid Act, signed into law in December.
The federal agency has provided temporary relief from both interest and principal repayments for some of these loans, although certain restrictions apply.
PPP applicants will have the opportunity to join the credit union as partners, allowing them to receive additional services.