SBA initiative through CARES
Like you, we are closely monitoring the new opportunities made available to the SBA in response to COVID-19. We are dedicated to providing solutions for your business as your banking partner. Continue reading to learn more about the Paycheck Protection Program (PPP).
What is a PPP Loan?
On Friday, March 27, 2020 the President signed the CARES bill which allows the SBA to assist in small business funding. The PPP is a program included in the bill that provides cash-flow assistance that federally guarantees loans to employers who maintain their payroll during this emergency. If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest, or utilities.
BREAKING NEWS: As of June 30, 2020, the SBA is no longer accepting Payroll Protection Plan (PPP). We look forward to assisting customers who received PPP loans with the forgiveness application in the coming weeks. You will be contacted via email with more details. To better prepare for the PPP forgiveness application, please visit the SBA website.
- Up to 250% of the average monthly payroll
- Most businesses with 500 employees or less are eligible
- No personal guaranty
- No collateral
- Loan payments deferred for 6 months
- Loan has a maturity of 2 years
- 1.0% interest rate fixed for life of the loan
- No loan fees charged to businesses
- No prepayment penalty
- Potential forgiveness of loan if certain criteria is met and documented