CARES Act - SBA Lending Program

The Coronavirus Aid, Relief, Economic Security (CARES) Act signed into law by President Donald Trump on March 27, 2020, contains significant relief for small businesses affected by the national emergency declaration related to the COVID-19 pandemic and the aggressive actions taken by state governments across the nation to combat the spread of the virus.  
 
We're proud to partner with the United States Small Business Administration (SBA) and have been recognized as a Top Community Bank Small Business Association Lender for Eastern Missouri in years past.  As an authorized SBA lender, we are prepared to help you find the right financial relief for your business.  
 
 
What you need to know about the Payroll Protection Program loan
Section 1102 of the CARES Act creates a new loan program under Section 7(a) of Small Business Act (the Paycheck Protection Loans). If small businesses maintain payroll during this economic crisis, some of the money borrowed through the newly created Paycheck Protection Program can be forgiven. The goal is to help small-business owners and their employees ride out this economic storm.
 
The purpose of the PPP loan is to assist with the following expenses:
 
  • Payroll (salaries and bonuses, state and local taxes)
  • Benefits (retirement, parental leave, and healthcare) 
  • Utilities
  • Rent
  • Interest on mortgage payments
  • Other unpaid bills due to COVID-19
     
7 Things You Should Know About the
Payroll
Protection Program (PPP) Loan

Who is eligible for the PPP and what are the qualifications? 

Small businesses with fewer than 500 employees are eligible to apply to the Paycheck Protection Program. These include firms that are nonprofits. It also includes sole proprietorships, self-employed individuals, independent contractors (a.k.a. gig economy workers), and veteran organizations.

Businesses must have been in operation as of Feb. 15 to be eligible to apply.

Collateral will not required nor a personal guarantee.

When can I apply? 

Small businesses will be able to start applying for the Paycheck Protection Program loans on Friday, April 3, 2020.  The deadline to apply is June 30, 2020.  Loans will be given on a first-come, first-served basis but apply early.  There is a funding cap and time is needed for our lenders to process your application.  Please contact us and we will provide you with the appropriate information required to start the process. 

How much can I borrow?

The Paycheck Protection Program provides small businesses loans that can be up to 2.5 times the borrower’s average monthly payroll costs. The amount that can be borrowed tops out at $10 million. The date range for calculating that average cost is different for seasonal businesses, nonseasonal businesses, and firms that opened in 2020.

Do I have to pay the loan back?

Borrowed money used for expenses relating to payroll, mortgage interest, rent, or utilities in the eight weeks following the date of origination may be forgiven. That means business owners may not have to pay the government back the full principal amount of the money borrowed. Borrowers will need to provide documentation of these expenses in their loan forgiveness application.

How do I apply for the SBA Payroll Protection Program loan?

As an authorized SBA lender, we are your local source for the PPP loan.  Contact a lender today or email relief@bankfc.com to get your application process started. 

What interest rate will be charged?

Money borrowed from the Paycheck Protection Program will have a 0.5% fixed interest rate on a 2-year term. The first payment is deferred for six months.

What's the timeline to receive funding?

The loans will be approved far more quickly than previous SBA-backed loans.  Applications will not require traditional SBA approval so turnaround and funding will be made very quickly.
This is a rapidly evolving program that contains many provisions.  We will monitor and update changes made by the legislation as they become available.  To stay connected to changes , please contact one of our SBA lenders at (636) 239-6600 or email at relief@bankfc.com
 
There are several SBA programs available.  Please contact the bank to make sure you are applying for the program that suits your needs.
 
For more information, here are two facts sheets published by the U.S. Chamber of Commerce and the SBA.