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Apply for a Paycheck Protection Program (PPP) Loan with MoFi

FAQs about PPP Loans in 2021

Updated 5/05/21

Who is MoFi?

Welcome to MoFi! We’ve been working with small business owners in the Rocky Mountains for 35 years. MoFi is a nonprofit Community Development Financial Institution that provides loans to individuals, businesses, and communities outside the financial mainstream.

Can you tell me more about MoFi’s PPP lending? Who is MoFi providing PPP loans to?

Over the last 12 months, we have provided PPP loans for 2,000 small businesses – including sole proprietors, independent contractors, and self-employed individuals. We work with businesses in Idaho, Montana, Oregon, Utah, Washington, and Wyoming. Our average PPP loan is $25,000. Our goal is to help small businesses keep their doors open and workforces employed. We can’t wait to meet you!
Examples of MoFi's PPP clients:
  • Preschools and childcare businesses
  • Restaurants
  • Painters, contractors, plumbers
  • Farms and ranches
  • Hair salons
  • Yoga instructors
  • Professional cleaning companies
  • Digital marketing agencies
  • Car washes and auto repair shops
  • Jewelers
  • Photographers and artists
  • Medical and dental offices, including chiropractors, physical therapists, and massage therapists
  • Veterinary offices
  • Landscaping businesses
  • Realtors
  • Guide services
  • Chambers of commerce
  • Accountants
  • Bookkeepers
  • Other professional service organizations
  • What business types are eligible for PPP?

    Businesses eligible for first- and second-time PPP loans include:
    • Sole proprietors
    • Independent contractors
    • Self-employed individuals
    • Private nonprofit organizations or 501(c)(19)s
    • Corporations
    • Veterans’ organizations
    • Tribal businesses
    • Direct marketing organizations
    • Certain nonprofits (the new bill has expanded eligible businesses to include certain 501(c)(6) nonprofit organizations)
    • Seasonal employers (those that operate no more than seven months within a year or earn no more than a third of gross receipts within a six-month period)
    • Faith-based organizations that have less than 150 employees
    • Housing cooperatives that employ less than 300 people
    • Newspapers, radio stations, and television stations
    Businesses must comply with size standards, eligibility criteria, and certain limitations.

    What payroll costs are eligible?

    • Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent).
    • Payment for vacation, parental, family, medical, or sick leave.
    • Allowance for dismissal or separation.
    • Payment required for the provisions of group health care benefits, including insurance premiums.
    • Payment of any retirement benefit.
    • Payment of state or local tax assessed on the compensation of employees.

    How much am I eligible to receive?

    MoFi is providing PPP loans to eligible businesses up to $250,000. If you think you will qualify for greater than $250,000, we encourage you to work with a local bank or credit union.
    First- and Second-Time PPP Loans:
  • 2.5x average monthly 2019 or 2020 payroll costs
  • For borrowers in the Accommodation and Food Services sector (click here for NAICS 72 to confirm), the maximum loan amount is 3.5x average monthly 2019 or 2020 payroll costs.
  • Which businesses are eligible for a first PPP loan?

  • Entities with 500 or fewer employees (full-time, part-time, or seasonal)
  • Businesses that were in operation on February 15, 2020 and remain operational
    Businesses that are not eligible for first- and second-time PPP loans include: Rental income/passive income businesses that file their taxes on a Schedule E.

    Which businesses are eligible for a second PPP loan?

    A borrower is generally eligible for a second PPP loan if the borrower:
    • Previously received a PPP loan and will use or has used the full amount only for authorized uses. (You do not have to have received forgiveness for the first PPP loan before applying for the second.)
    • Has no more than 300 employees (full-time, part-time, seasonal). (If you have multiple locations, you may not have more than 300 employees per location.)
    • Is able to demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. (Borrowers may also compare annual gross receipts in 2020 with annual gross receipts in 2019.)
    Businesses that are not eligible for first- and second-time PPP loans include: Rental income/passive income businesses that file their taxes on a Schedule E.

    Can you tell me more about the 25% reduction in gross receipts?

    If you are applying for your first PPP loan, you do not need to demonstrate a reduction in gross receipts.
    To be eligible for a Second Draw PPP Loan, applicants must be able to demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. Alternatively, applicants may compare annual gross receipts in 2020 with annual gross receipts in 2019. (If you do this, please enter “Annual” in the 2020 Quarter and Reference Quarter fields on the SBA's PPP loan application).
  • For entities not in business during the first and second quarters of 2019 but in operation during the third and fourth quarters of 2019, applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than either the third or fourth quarters of 2019.
  • For entities not in business during the first, second, and third quarters of 2019 but in operation during the fourth quarter of 2019, applicants must demonstrate that gross receipts in any quarter of 2020 were at least 25% lower than the fourth quarter of 2019.
  • For entities not in business during 2019 but in operation on February 15, 2020, applicants must demonstrate that gross receipts in the second, third, or fourth quarter of 2020 were at least 25% lower than the first quarter of 2020.
  • Will my PPP loan qualify for SBA forgiveness?

    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.
    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.

    What materials do I need to apply?

    Materials will vary based on whether you’re applying for a first or second PPP loan. Please see MoFi’s application forms for a complete list of materials needed to apply:
    • For first-time PPP clients who have not received a PPP loan: https://formstack.io/9B9B5
      • NOTE: At the formstack link above, you'll be asked to upload the SBA's PPP application. (Form 2483-C for Schedule C filers or Form 2483 if you don't file on a Schedule C)
    • For second-time PPP clients who received their first PPP loan from MoFi in 2020 or 2021: https://formstack.io/53A50
      • NOTE: At the formstack link above, you'll be asked to upload the SBA's PPP application. (Form 2483-SD-C for Schedule C filers or Form 2483-SD if you don't file on a Schedule C)
    • For second-time PPP clients who received their first PPP loan from a different lender: https://formstack.io/0C7A3
      • NOTE: At the formstack link above, you'll be asked to upload the SBA's PPP application. (Form 2483-SD-C for Schedule C filers or Form 2483-SD if you don't file on a Schedule C)

    What is the deadline to apply?

    PPP has been extended through May 31, 2021. MoFi is providing PPP loans on a first-come, first-served basis until the May 31 application deadline, or until funding for the program is no longer available. The earlier you apply, the better.  

    How long does the process take, and when will I receive funds?

    Once we submit your application to the Small Business Administration (SBA), approvals are subject to their timeline. The second round of PPP is being processed through a different system than the first round. One key difference is that the SBA is manually checking eligibility, and approvals are not immediate like they were during the first round of PPP. We will keep you updated on the status of your loan and provide the estimated funding date as soon as we receive SBA approval.
    We encourage you to keep an eye on your phone and email, as we will be reaching out with questions and requests for any additional information we may need. Your responsiveness will help us move your application forward as quickly as possible. Thank you in advance!

    What are the rates and terms for Second Draw PPP Loans if I do not meet the 25% revenue reduction that is required for forgiveness?

    1. The interest rate will be 1%, calculated on a non-compounding, non-adjustable basis.
    2. The term is 5 years.
    3. No collateral will be required.
    4. No personal guarantees will be required.
    Good news! The Paycheck Protection Program has been extended to 5/31/21. APPLY NOW
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