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PLEASE NOTE:

All fields in the box indicated below on the Second Draw Borrower Application form must be complete in order for Day Air to submit your second draw application to the SBA.

We are aware the field states “Applications for loans of $150,000 or less may leave blank” however, if the field is left blank the SBA will not accept the application – therefore this information needs to be completed.

Apply for funds from the Paycheck Protection Program

We’re pleased to let you know that Day Air Credit Union is a Community Development Financial Institution (CDFI). Your business membership with Day Air provides early access to the newly available Payment Protection Program (PPP) funds before businesses with accounts at the “big banks.” Learn more about the PPP below.

Top-line Overview of PPP First Draw Loans
The U.S. Small Business Administration (SBA) is reopening the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

More details about Paycheck Protection Program First Draw Loans

PAYCHECK PROTECTION PROGRAM FIRST DRAW LOANS

SBA is reopening the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

Full Forgiveness Terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.

Who Can Apply
Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed
individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply.1

Reapplying and Loan Increases
Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw
PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP
Loan amount if they previously did not accept the full amount for which they are eligible.

How and When to Apply
Borrowers can apply for a First Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All new First Draw PPP Loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found HERE.

Ensuring Access for All
SBA continues to call upon its lending partners, including Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. At least $15 billion is being set aside for First Draw PPP loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. To promote access for smaller lenders and their customers, SBA will initially only accept loan applications from community financial institutions starting on January 11, 2021. The PPP will open to all participating lenders shortly thereafter.

Visit www.sba.gov or www.treasury.gov for more information and details, including the comprehensive program rules.

1 Also eligible to apply for First Draw PPP Loans are businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees.

Top-line Overview of PPP Second Draw Loans
The PPP now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. 

More details about Paycheck Protection Program Second Draw Loans

PAYCHECK PROTECTION PROGRAM SECOND DRAW LOANS

The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

Full Forgiveness Terms
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60 percent of the proceeds are spent on payroll costs.

Targeted Eligibility
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:

  • Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
  • Has no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.

Maximum Loan Amount and Increased Assistance for Accommodation and Food Services Businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (click HERE for NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.

How and When to Apply
Borrowers can apply for a Second Draw PPP Loan until March 31, 2021, through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, eligible non-bank lender, or Farm Credit System institution that is participating in PPP. All Second Draw PPP Loans will have the same terms regardless of lender or borrower. A list of participating lenders as well as additional information and full terms can be found HERE.

Ensuring Access for All
SBA continues to call upon its lending partners, including Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs), to redouble their efforts to assist eligible borrowers in underserved and disadvantaged communities. At least $25 billion is being set aside for Second Draw PPP Loans to eligible borrowers with a maximum of 10 employees or for loans of $250,000 or less to eligible borrowers in low- or moderate-income neighborhoods. To promote access for smaller lenders and their customers, SBA will initially only accept Second Draw PPP Loan applications from community financial institutions starting on January 13, 2021. The PPP will open to all participating lenders for Second Draw PPP Loans shortly thereafter.

Visit www.sba.gov or www.treasury.gov for more information and details, including the comprehensive program rules.

To apply fill out an application (links below) and send it to bizhelp@dayair.org

PPP Loan Forgiveness Application

Important Details for Applicants

  • All applications are worked on a 1st come 1st serve basis.
  • Applications can be emailed to bizhelp@dayair.org or faxed to 937-643-3885.

Day Air is now accepting PPP loan forgiveness applications.

For loan amounts under $50,000, you may use the 3508S simplified forgiveness application listed below. For loan amounts over $50k, please refer to the PPP 3508EZ application and instructions below to see if you qualify for this form. Otherwise, please complete the full PPP 3508 application listed below.

Once you are ready to submit your forgiveness application, please email us at Bizhelp@dayair.org and we will send you a secure link to upload your application and supporting documents.

Questions? Schedule an easy 30 minute virtual appointment with one of our PPP specialist here or email our PPP Specialists at bizhelp@dayair.org.

*Lender has 60 days to review and submit to SBA. SBA has 90 days to review and approve. Day Air will provide periodic updates along the way.

PPP Loan Forgiveness Applications and Instructions

PPP 3508S Simplified Loan Forgiveness Application and Instructions

For loan amounts under $50k, you may use the 3508S simplified forgiveness application.

Please review the application and instructions (listed below) for completing and submitting the application along with supporting documentation.

Once you are ready to submit your application, please email us at bizhelp@dayair.org asking for the secure link. We will reply with our secure messaging system so that you can safely upload your application and supporting documentation.

Note: your SBA loan number can be found on your Promissory Note from your closing documents. Your Day Air loan number is listed on your Day Air monthly statement (if difficulty locating this number, leave blank and we’ll fill in on your behalf).

View the 3508S simplified loan forgiveness application.

View the instructions for completing the 3508S simplified loan forgiveness application.

View the Interim Final Rule on the 3508S simplified forgiveness process for loans of $50,000 or less.

PPP 3508EZ Loan Forgiveness Application and Instructions

The PPP EZ Loan Forgiveness Application version requires fewer calculations and less documentation for eligible borrowers. Borrowers have the option to use the original 8-week covered period (if loan was made before June 5, 2020) or an extended 24-week covered period.

PLEASE NOTE: Borrower must answer 1 of 3 questions in EZ Loan Forgiveness Application to be able to use the EZ form.

  • PPP EZ Loan Forgiveness Application – click here.
  • PPP EZ Loan Forgiveness Application Instructions – click here.
PPP 3508 Loan Forgiveness Application and Instructions

To view the PPP Loan Forgiveness Application click here. (includes details on loan calculations)

To view the PPP Loan Forgiveness Instructions click here.

Please contact bizhelp@dayair.org when you are ready to apply for PPP Loan Forgiveness.

Additional Information

Loan forgiveness documentation for Sole Proprietors, Independent Contractors and Self-Employed Individuals.

 

June 16, 2020 – Please see the revised FULL PPP Loan Forgiveness Application Instructions here.

Loan forgiveness documentation for Sole Proprietors, Independent Contractors and Self-Employed Individuals. 3

  • The 2019 Form 1040 Schedule C to verify net income (line 31) for owner income replacement calculation.
  • If you have employees, provide payroll documentation as outlined above, including documentation of healthcare and retirement benefits costs. Exclude owner from healthcare and retirement costs.
  • Canceled checks, receipts, account statements or other documentation of payment for other eligible costs incurred and paid during the covered period such as mortgage interest, lease payments, utility payments. Note: these types of expenses must have been deducted on the 2019 Form 1040 Schedule C to be eligible for forgiveness.

3 Reminder: This information is currently not fully complete and requires additional SBA guidance.

Eligibility and "Good Faith"

All borrowers must assess their economic need for a PPP loan under the standard established by the CARES Act and the PPP regulations at the time of the loan application. Although the CARES Act suspends the ordinary requirement that borrowers must be unable to obtain credit elsewhere1, borrowers still must certify in good faith that their PPP loan request is necessary. Specifically, before submitting a PPP application, all borrowers should review carefully the required certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.”

Borrowers must have made this certification in good faith, taking into account their current business activity and their ability to access other sources of liquidity sufficient to support their ongoing operations in a manner that is not significantly detrimental to the business. For example, it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification. Any borrower that applied for a PPP loan prior to the issuance of this guidance and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification in good faith.

Furthermore, the SBA will review all loans in excess of $2 million, in addition to other loans as appropriate, following Day Air’s submission of your loan forgiveness application.

1 As defined in Section 3(h) of the Small Business Act.

Important to consider when attempting to utilize proceeds that may be forgiven:
  • If by 6/30/20, you re-hire your workforce and additionally restore your full-time employment and salary levels for any changes to your workforce made between 2/15/20 and 4/26/20, the re-hire and restoration would be exempted from forgiveness reductions. No governmental guidance requires that employees be physically working, but rather that they be employed.
    • Example, if you had 10 employees prior to 2/15/2020 and reduced your staff to 5 employees during the crisis, you could avoid a reduction in forgiveness by rehiring 5 employees back to 10 total. If salary levels were $100,000 per month before 2/15/2020, then were reduced to $50,000 per month during the crisis, forgiveness reductions could be avoided by returning to the $100,000 salary and 10 employee levels as before.
  • Utilize proceeds for payroll costs first.
  • Utilize qualifying proceeds within the first 8 weeks from disbursement of the proceeds.
How much of my SBA PPP loan MAY be forgiven?
  • The amount of loan proceeds used for qualifying purposes during the 8 weeks following the date of the disbursement of the proceeds.
  • The maximum forgiveness is the full principal amount plus any accrued interest; however, stipulations apply, and the forgiveness can be less than this.
  • At a minimum, 60% of the loan proceeds must be attributable to Payroll Costs.
  • At a maximum, 40% of the forgiveness amount may be attributable to non-Payroll Costs2, which are limited to:
    • payments of mortgage interest on mortgage obligations incurred before February 15, 2020
    • rent payments on leases dated before February 15, 2020
    • utility payments under service agreements dated before February 15, 2020

Important: It is the borrower’s responsibility to track and calculate Payroll and non-Payroll Costs.

2 For individuals with self-employment income who file a Form 1040 Schedule C, these are eligible for forgiveness to the extent they are deductible on Form 1040 Schedule C.

The amount forgiven may be reduced if:
  • Your full-time employee headcount decreases.
    • The amount of loan forgiveness will be reduced (but not increased) by comparing the number of full time employees (FTE) used for the loan amount calculation to the number of employees during the period when proceeds were used. Reduction would not be applied if the total number of FTE is restored before 6/30/20.
    • If you attempt to rehire a laid off employee for the same salary/wages and same number of hours, but the employee declines the offer, the forgiveness amount will not be reduced by that employee. You must have given a good faith, written offer, and the employee’s rejection of that offer must be documented.
    • Employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation.
  • Salaries and wages decrease by more than 25% for any employee making less than $100,000 annually. Reduction would not apply if the salary or wage is restored before 6/30/20.
  • You refinanced an Economic Injury Disaster Loan (EIDL) into your PPP, any proceeds from any EIDL advance up to $10,000 will be deducted from the loan forgiveness amount.
What is the PPP Loan?

Designed to advance Congress’s goal of keeping workers paid and employed across the United States by providing cashflow assistance to employers who maintain their payroll during this emergency, the core purpose of the SBA Paycheck Protection Program (SBA PPP or PPP) is to devote finite program resources primarily to payroll protection. The PPP provides low cost funds to borrowers to meet eligible payroll costs and other eligible expenses during this temporary time of economic dislocation caused by the Coronavirus. As certified in the application, the funds from the SBA PPP Loan will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments.

How do I calculate Payroll Costs for forgiveness purposes?

Payroll Costs Include:

  • Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee with a principal place of residence in the United States);
  • Employee benefits (for employees not owners) including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
  • State and local taxes assessed on compensation paid by the employer (such as unemployment insurance premiums);
  • Housing stipends or allowance provided to an employee as part of compensation; and
  • Owner compensation replacement, calculated based on 2019 net profit4, with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit, but excluding any qualified sick or family leave equivalent amount for which credit is claimed under FFCRA5.

Payroll Costs Excludes:

  • Compensation from employees whose principal place of residence is outside of the US;
  • Compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary;
  • Since payroll costs are calculated on a gross basis, they are calculated without regard to federal employment taxes imposed or withheld between 2/15/20 and 6/30/20, including the employee’s and employer’s share of FICA and RRA taxes. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, and payroll costs do not include the employer’s share of payroll tax;
  • Other income taxes required to be withheld from employees; and
  • Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act.

4 Net profit is calculated using 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000.

5 Section 7002 of the Families First Coronavirus Response Act (FFCRA) (Public Law 116-127) and Section 7004 of FFCRA, respectively

Please note:
1. If funds are used for unauthorized purposes, you will have to repay those amounts. If you knowingly misuse them, you will be charged with fraud.

2. Day Air Credit Union will not pay Agents for assistance they may provide an applicant in obtaining a PPP loan.

The information on this page is based upon guidance from the Small Business Administration (SBA) and American Institute of CPAs (AICPA). Please note that the SBA is continuously refining its guidance and this information is subject to change. This information is intended for use by Day Air members and is not intended to be relied upon for legal or tax advice.

More COVID-19 Resources

Impacted services and locations.

Borrower Assistance Programs for members.

Paycheck protection program for small businesses.

Economic impact payment (stimulus check) details for members.

CARES Act summary for Day Air members.

How to access your account digitally.

Associate and Community support throughout the COVID-19 situation.

Safety and soundness of Day Air Credit Union.

Protect your money from Coronavirus scams.

Local, state and national resources for our members.

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