COVID-19 SBA Loan Assistance Programs and CARES Act

During these unprecedented times impacting our nation’s businesses, we can assure you that 1st Capital Bank is monitoring the financial and economic development assistance programs for businesses on an hourly basis. The following information is to provide the business owner/operator what is currently available regarding economic assistance programs for your business as a result of the coronavirus (COVID-19) and the CARES ACT.

Paycheck Protection UPDATE (PPP)*

According to the Small Business Administration, all funds available under the Paycheck Protection Program have been allocated to loan applications that it has accepted. Therefore, 1st Capital Bank is not accepting additional PPP applications at this time. We recognize that this may be cause for concern for potential borrowers with applications that have not yet been funded. Please be assured that loans already approved by the SBA will be funded. We are monitoring events closely, particularly proposed legislation to increase funds available under the PPP. Please contact your Relationship Manager for additional details.

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Paycheck Protection Program (PPP)*

The Paycheck Protection Program provides small businesses with funds to pay up to eight weeks of payroll costs including benefits. Small businesses with 500 or fewer employees – including non-profits, veterans' organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors – are eligible.

Funds are provided in the form of loans that will be eligible for full forgiveness when used for payroll costs, interest on mortgages, rent and utilities over the eight week period after the loan is made if compensation levels are maintained. Loan amounts can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. The amount is subject to a $10 million cap. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

Interest rate is 1.0% fixed, and maturity is two years.

Visit the SBA: https://www.sba.gov/funding-programs/loans/paycheck-protection-program

*Subject to credit approval and program guidelines. SBA loans are subject to SBA eligibility guidelines. Certain restrictions apply to refinancing options and are subject to program terms. Refinances of existing SBA loans are excluded.

Economic Injury Disaster Loan (EIDL)

The EIDL program provides small businesses with working capital loans up to $2 million to help overcome the adverse impact from the coronavirus (COVID-19). Program eligibility: Open to small businesses, small agricultural cooperatives, small aquaculture businesses and most private non-profit organizations.

Working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion. The interest rates for this disaster program are 3.75% fixed for small businesses and 2.75% fixed for non-profit organizations with terms up to 30 years. Personal guarantees and collateral may be required to qualify for the loan.

This is a direct (non-bank) loan processed through the SBA. The funding comes directly from the U.S. Treasury. Applicants do not go through a bank to apply. Instead, they apply directly to SBA’s Disaster Assistance Program. Visit the SBA and Apply: https://covid19relief.sba.gov/#/

Disaster Loan Assistance Program

Federal Disaster Loans for Businesses, Private Non-Profits, Homeowners and Renters

SBA is collecting the requested application information in order to make a loan under the SBA’s Economic Injury Disaster Loan Program to qualified entities listed in this application that are impacted by the coronavirus (COVID-19). The information will be used in determining whether the applicant is eligible for an economic injury loan. If you do not submit all the information requested, your loan cannot be fully processed.

Visit the SBA and apply: https://covid19relief.sba.gov/#/

Other Important Business Resource Links

We’ve compiled a list of business resources links that you might want to bookmark on your computer.

California Department of Business Oversight
https://dbo.ca.gov/2020/03/25/covid19/

SBA and Small Business Loans Guides/Resources
https://www.uschamber.com/co/small-business-coronavirus

Multi State COVID-19 Tracker
https://www.multistate.us/pages/covid-19-policy-tracker

U.S. Chamber of Commerce
https://www.uschamber.com/coronavirus

U.S. Chamber of Commerce Emergency Loans Guides and Check List
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

U.S. Senate CARES Act
https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act

We are Here to Help.

At 1st Capital Bank we have a team of dedicated SBA and Commercial lenders who are available to assist and guide you with any questions you may have regarding your existing business loan. To reach one of our SBA lending professionals to discuss these specific SBA assist programs, please email at sba.ggl@1stcapitalbank.com. 1st Capital Bank is a preferred lender of the SBA. All loans are subject to credit approval.

 

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