Business Loan Relief

SBA Paycheck Protection Program (PPP)

Charter Oak understands the needs of our small business community during these uncertain times and we’re here to work with our existing business members in need. The federal Small Business Administration has reopened its Paycheck Protection Program (PPP) for 2021 for new borrowers and for certain existing PPP borrowers, and Charter Oak is a participant in this new round of PPP funding.

PPP funding for 2021 will continue to prioritize those who are employed by small businesses by authorizing federal funding toward job retention as well as certain other expenses. In addition, the program will allow certain existing PPP borrowers to apply for a “second draw” PPP loan.

Paycheck Protection Program Key Provisions

• PPP loans have an interest rate of 1%.
• Loans issued prior to June 5 have a maturity of 2 years. Loans issued after June 5 have a maturity of 5 years.
• Loan payments will be deferred for borrowers who apply for loan forgiveness until the SBA remits the borrower’s loan forgiveness amount to the lender.
• If a borrower does not apply for loan forgiveness, payments are deferred 10 months after the end of the covered period for the borrower’s loan forgiveness (either 8 weeks or 24 weeks).
• No collateral or personal guarantees are required.
• Neither the government nor lenders will charge small businesses any fees.
• Please note: This stimulus program is available through the Small Business Administration and all funding decisions for this program are made by the SBA, not by Charter Oak Federal Credit Union. As with the 2020 Paycheck Protection Program, this federal program may experience high volumes of applications and there is a limited amount of federal funds available.

Who Can Apply?

According to the SBA, the following entities affected by COVID-19 may be eligible for its 2021 Paycheck Protection Program:

• Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard).
• Sole proprietors, independent contractors, and self-employed persons.
• Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location.
• Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (see sec. 31(b)(2)(C) of the Small Business Act) with the greater of 500 employees or which meets the SBA industry size standard if more than 500 employees.

Before Applying, Please Note

• Once an application is received from an existing Charter Oak business member, the applicant will be notified by email from a Charter Oak representative.
• Because of the high volume of expected applications, all correspondence with Charter Oak will be done via email.
• Charter Oak representatives cannot process an incomplete application so please include all of the appropriate information.
• Please send completed applications via email to

Apply Now!

Thank you for your interest in the SBA’s Paycheck Protection Program for 2021. Charter Oak’s business lending team looks forward to assisting you during these challenging times for eastern Connecticut’s small business community.