An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
One of the most anticipated parts of the “Coronavirus Aid, Relief, and Economic Security Act”, or “CARES Act” for short, passed by Congress on January 3rd, 2020 is the Payroll Protection program which is designed to keep workers paid and employed during the COVID-19 Coronavirus crisis we are in the midst of nationally.
While there has been plenty of conversation regarding this new government program in the news media for weeks now, very few specifics have been defined leaving many small businesses, IPS included, confused about what to do to access their share of the $349 Billion fund that has been established for this program. That’s why I have authored this article to share all of the information and resources I have discovered through research in one easy to access place.
Who Qualifies for This Program?
All businesses with less than 500 employees are eligible to apply and receive benefits from the Payroll Protection Program. This includes sole proprietorships and even non-profit 501(c)(3) organizations.
How much can I apply for?
Small businesses can borrow up to $10 million to be repaid over two years at an annual rate of 0.5%. Payments are deferred for six months. Applications can be submitted as early as tomorrow, Friday, April 3rd, and as late as June, however, this is a “first come first serve” program so there is no guarantee that your business will be able to access a loan through this program is you do not act quickly.
What can I use the funds for?
The primary purpose of this loan program is to cover payroll expenses, and if you want the loan to be forgiven 75% of the total loan amount or higher must be spent directly on payroll. That said, for the purpose of this program, “payroll” also includes independent contractors (1099 employees) and not just salary (W2 employees). In addition to the money that’s used to pay salaries that can be forgiven, a portion of the money used for rent, mortgage interest and/or utilities can be at least partially forgiven.
What do I need to Apply?
This point has been particularly confusing with much miss-information the past few weeks… It appears you won’t need collateral or to personally guarantee the loan as with a traditional SBA loan. You will need to document your payroll, rent, mortgage interest, and utility expenses. The payroll portion of the loan is based on the monthly average of what the company paid employees during the year prior to the loan being granted. If you are a new business, you may still qualify if you have payroll expenses from at least January and February of this year. Any salaries exceeding $100,000 annually are excluded from the program and will not be covered. You can download the Payroll Protection Program application here.
How long will it take?
The government says this will be a fast, streamlined process — some companies could get money the same day, not like the weeks or months it takes when applying for a traditional SBA loan. You can apply through any FDIC insured bank, or credit union, not just a traditional SBA lender. There is expected to be an online application process, likely through a financial institution’s website.
When will the loan be forgiven?
The government will calculate how much of the loan will be forgiven after June, 30th. The program covers the period from Feb. 15th through June 30th and the business will need to document how many workers they employed during that time and how much they were paid. If you’ve laid-off workers, you will have until June 30th to rehire them, however, only their period of employment between Feb. 15th and June 30th will be eligible for loan forgiveness.
Can I also apply for a Federal Disaster Assistance loan?
Applying for and receiving a loan from the Payroll Protection Program will not impact a business’s eligibility to also receive a Federal Disaster Assistance loan. These loans can be up to $2 million and repaid over a term as long as 30-years at a rate of 3.75%, although each loan will be formatted and assessed based upon the individual situation and financial strength of the business applying. Disaster loan applications can be submitted directly through the SBA on its website here.
***Please see the current List of FDIC Insured Banks that will process Payroll Protection Program (PPP) Loan Applications below. Some banks may not be available to accept these applications Friday, April 3rd, but as they become available these links should work. Please note, applications can only be submitted online, and not on paper, by phone, or in a branch location.***
- 21st Century Bank
- America First FCU – Apply at this link by clicking Apply Now. You’ll need a business account first.
- Ameris Bank – Fill out an application here and submit to PPP@amerisbank.com. See more details.
- Atlantic Capital Bank
- Bank of America – A guide is posted here, but there aren’t many details on applying yet.
- Bank of George – See documents you’ll need here.
- Bank of Hope – Call 888-972-5363 for details.
- Bank of the West
- BankUnited – Begin collecting documentation now, including Form 941 from the most recent four quarters and verification of payroll cost and employees for the last 12 months. See updates here.
- BBVA Compass – Updates will be available starting April 3 here. See other options here.
- Berkshire Bank – They suggest filling out a Contact Us form because of high call volume.
- Byline Bank – Updates will be here. If you’re a current customer, contact your Portfolio Manager.
- Cadence Bank – Learn more.
- Capital One – Applications aren’t being accepted as of April 2. Updates will be posted here.
- Cathay Bank
- Celtic Bank – Celtic warns they may have to delay accepting applications due to the SBA not yet releasing initial guidance. You can start by filling out a form here.
- CenterState Bank – Complete a form here for updates
- Centerstone SBA Lending, Inc.
- Chase Bank – They aren’t currently accepting applications but will post updates here.
- Citizens Bank – Updates will be posted here.
- Comerica Bank – Call 888-444-9876. Updates will be posted here.
- Customers Bank – Complete the form at the bottom of the webpage for updates.
- East West Bank – Fill out the inquiry form here.
- Embassy National Bank
- Falcon National Bank – Phone numbers and emails to contact are listed here.
- Fifth Third Bank – You’ll need an online banking profile first and you can only apply online. See more details here.
- FinWise Bank
- FirstBank – Download an application here and then email it to your FirstBank banker.
- First Chatham Bank
- First Commonwealth Bank – Complete an application here and include 2019 Form 941 or Form 944 and a beneficial ownership form. Upload the application on their DropBox site or mail the application. See more details here.
- First General Bank
- First Home Bank – Start applying here.
- First-Citizens Bank & Trust Company
- First IC Bank
- First Financial Bank – Details will be posted here and First’s SBA clients will also get emails.
- First Horizon Bank – Updates here and contact your banker for more details.
- First National Bank of Pennsylvania – Updates here.
- First Savings Bank – If you’re a current banking customer, contact one of their lenders or call 1-833-372-4968.
- First United Bank – Apply here.
- First Western – Updates will be posted here.
- Five Star Bank – Contact your relationship manager for details, or see phone numbers near the bottom of the page here.
- Fountainhead SBF LLC – Fill out an application here to be entered into the processing queue. You’ll get a welcome email with details on more steps to take.
- Frost Bank – Plan ahead by gathering all the required documentation and then talk to your banker. More details are here.
- Fulton Bank – Applications will be accepted starting April 3. Download an application here, save it and email it to PPPSB@fultonbank.com. See details here.
- Hana Small Business Lending, Inc.
- Hanmi Bank – Details here.
- Harvest Small Business Finance, LLC
- HomeTrust Bank – Updates will be here.
- Huntington National Bank – See their PPP page here. They list what documentation you’ll need along with other relief programs.
- IncredibleBank – See details here.
- Independent Bank
- KeyBank National Association – Fill out a form here for updates.
- JPMorgan Chase Bank – They aren’t currently accepting applications but will post updates here.
- Live Oak Banking – Sign up here to see when they’re accepting applications.
- M&T Bank – Updates may be posted here. They also have an SBA loan page here, but it isn’t updated yet with CARES information.
- Metro City Bank
- Midwest BankCentre – PPP fact sheet and details are here. Call 314-631-550 or 800-894-1350 with questions.
- Midwest Regional Bank – A page here simply says not to email personal or financial information.
- Mountain Pacific Bank – Contact your loan officer at 425-263-3500 or wait for updates here.
- MUFG Union Bank
- NewBank
- Newtek Small Business Finance, Inc.
- Northwest Bank – Updates here.
- Old National Bank – Applications open April 3. Contact a loan officer for details.
- Open Bank
- Pacific City Bank – Their SBA loan page is here, but it does not list PPP options yet.
- Patriot Bank
- Pacific Western Bank – There’s no start date yet, but the bank recommends having payroll registers and financial statements ready. Learn more here.
- Peapack-Gladstone Bank – On this update, the bank says to email PGBCovid19PPPRelief@pgbank.com for help.
- Peoples Bank – Complete a form here to be contacted.
- Pinnacle Bank – Talk to your Pinnacle financial advisor or find one here.
- PNC Bank – Click “Contact Us” for details.
- Poppy Bank
- PromiseOne Bank – Their website currently only talks about EIDL loans and not the new PPP loans, so it’s not clear if they’re offering these loans or not.
- Quantum National Bank – Applications will be posted here.
- Readycap Lending, LLC – Start the process here.
- Regions Bank – Updates here.
- Republic Bank – This page briefly mentions PPP along with other options.
- Royal Business Bank
- Seacoast Commerce Bank – Scroll down to the Protection Loan section near the end of the site and click on “Apply Here.”
- Seacoast National Bank
- Shinhan Bank America
- Stearns Bank National Association – PPP loan applications won’t be accepted until April 10.
- Stone Bank
- Sunflower Bank – Get updates here.
- Synovus Bank – You can apply online on April 3. Be notified here.
- TCF National Bank
- TD Bank
- The MINT National Bank
- Truist Bank d/b/a Branch Banking & Trust Co – Trustmark has a page about applying here.
- Umpqua Bank – Visit here for all relief options. Sign up here for PPP updates.
- UniBank
- Union Bank – Updates are posted here but nothing specifically about CARES as of the time of publication.
- United Business Bank
- United Community Bank – Sign up here for updates on PPP.
- United Midwest Savings Bank
- Univest – They’ll begin accepting loan applications on April 3 and April 10. Complete an online application here and send it to PPP@univest.net.
- U.S. Bank, National Association – Updates will be posted here.
- US Metro Bank
- VelocitySBA – See here.
- Wallis Bank
- Wells Fargo Bank – You’ll be able to apply online here.
- West Town Bank & Trust – Complete a contact form here for a pre-application. Get more details here.
- Zions Bank – An application will be here on April 3.
For a complete Payroll Protection Program fact-sheet provided by the Small Business Administration please click here.
Sources:
CARES Act: https://www.congress.gov/bill/116th-congress/house-bill/748/text
SBA Paycheck Protection Program: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
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