Information for commercial members
Coronavirus Aid, Relief and Economic Security - CARES Act: The legislation passed by Congress contains several provisions to provide emergency assistance for Small Businesses affected by the pandemic.
Small Business Administration (SBA) issued final guidance to financial institutions on the Paycheck Protection Program (PPP). Direct loans from financial institutions guaranteed through the SBA are available.
This is our current understanding of the provisions in the bill for Small Business owners:
- Loan applications on SBA Form 2483
- Borrowers will need to certify that they have been impacted. There will be no personal guarantees or collateral associated with the loan.
- Loans can be for up to 2.5 times your average monthly payroll costs from the last year. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
- Interest Rate: 1.00% Fixed Rate.
- Loan term: 2 years.
- All payments will be deferred for 6 months; however, interest will continue to accrue over this period.
How much of my loan will be forgiven?
SBA has issued their Paycheck Protection Program Loan Forgiveness Application that can be found from the following link: https://www.sba.gov/sites/default/files/2020-05/3245-0407%20SBA%20Form%203508%20PPP%20Forgiveness%20Application%20FINAL_Fillable.pdf
When can you apply
- Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
- Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
Neighbors FCU is now accepting applications.
More information can be found on the Treasury Department’s website.
This information will be updated and may change as the Small Business Administration publishes guidance about the lending program. Please check back regularly.
You may also call 225-819-2178 for more information.
Other helpful commercial information
In the interest of our business owners, Neighbors would like to provide the following link to help navigate the ever-changing financial situation caused by the COVID-19 pandemic. Here you will find up-to-date information on the latest government programs/decisions and how they might affect your business.