stimulus loan for business

The Federal Government recently passed the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act.  This $2 trillion relief package covered a number of areas, with $350 billion specifically set aside for the Paycheck Protection Program (PPP) to help businesses like yours.

The United States Small Business Administration ("SBA") has issued guidance, provided forms, and has started to establish the process for businesses to apply for loans or relief.  We want to make sure you have the information currently available so you can begin your path forward.  Please keep in mind that these are subject to final rulemaking and eligibility requirements from the SBA.

We continue to monitor the ongoing guidance from the SBA.  Given the complexity and expected utilization of this program, there is much work the government must complete to ensure the program runs smoothly and provides timely relief.  We ask that you continue to visit our website for updates on the exact timing for the opening of the application process.  As soon as we have a definitive date and time, we will communicate it to you.

We know many of you have never had to apply for an SBA loan, and the process may seem daunting under the current circumstances.  At this point, our efforts are focused on helping current customers of Liberty National Bank.  If you have any questions, please contact your banker.

Below is some additional information to help you in the process:

The big stimulus bill covers businesses with less than 500 employees hurt by the virus.  The amount you can receive is the total average monthly payroll costs for the last year x 2.5 if you will keep your business open and don't layoff your employees.  The entire loan can be forgiven.  The program is called the Paycheck Protection Program.

Total Payroll Costs/12 x 2.5 = Total Loan Amount

Liberty National Bank will be a source for this program.  The loan will have no collateral and no guaranty if you commit to have the same number on your payroll as you did February 15th.  All you need to provide is your payroll costs for the last year.  We'll handle all paperwork.  You can apply on-line soon at LNBOK.com, or call any LNB loan officer.

Average total monthly payments or the following payroll costs:

Salary, wage, commission, or similar compensation

  • payment of cash tip or equivalent
  • payment of vacation, parental, family, medical, or sick leave
  • allowance for dismissal or separation
  • payment required for the provisions of group health care benefits, including insurance premiums
  • payment of any retirement benefit
  • payment of State or local tax assessed on the compensation of employee

Total (Multiplied by 2.5 = loan amount)

Employees compensated in excess of $100,000 annual salary are not included.

Forgiveness:

  • If you maintain your employees as of February 15, 2020, your loan can be forgiven.
  • Loan amounts that are not forgiven will be payable over 2 years at a 1% interest rate

Loan Uses:

Payroll costs, interest on mortgage payments, rent and utilities

Paycheck Protection Program Details:

  • For more information, call 855.351.2265
  • Remember, with any government program, there might be some surprises.  Be sure to check the SBA website for all information
  • Applies to business with less than 500 employees
  • Loans will be fully guaranteed by the federal government

*All information is pending further approval and is subject to SBA guidelines*

Here are some additional resources for you:

Please feel free to contact your loan officer or give us a call at 855.351.2265 with any questions.   

we are with you all the way!

 

Welcome Back!  Our lobbies are open.  Recommended Covid-19 safety precautions will be in place when you visit us.  We look forward to seeing you again!

 

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