FEDERAL DISASTER RELIEF
THE PPP (Paycheck Protection Program)
If you are a small business, this program might be just what you need to get through these tough times.
This PPP is good for companies with 500 or less employees, including those who are self-employed. It offers an interest rate of 1% on a loan for up to 2.25 times the amount of your payroll, including benefits, for two months. It is FORGIVABLE (meaning you won't have to pay it back!) if it is used for specific expenses under the CARES Act.
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
If you need additional working capital funds, please speak with your Business Banker as this program is only available to cover payroll, rent, interest on mortgages and utilities.
EIDL (Economic Injury Disaster Loan)
This is a great option for small businesses AND independent contractors.
It is a 30 year fixed loan with an interest rate of 3.75%, no payments due for the first 12 months.
However, there is an IMMEDIATE $10k ADVANCE, that IS forgivable if used for specific expenses under the CARES Act. That's right, financial help at NO cost to you!
Your EIDL can be refinanced with the PPP. Both are available simultaneously, but cannot be used for the same expenses.
NOTE: Both of these programs are brand new in response to the passing of the CARES Act, and the SBA is taking direction from Washington. This means there are still a lot of unknowns, and we will do our part to stay updated and learn more as the information becomes available.