With the current situation in our world, and in our neighborhoods, many of you are experiencing unexpected losses and an overall uncertainty about the future. The team at American State Bank & Trust will be here for you today, tomorrow and well into the future. Below is a summary of some of the Small Business Administration programs that may be available for you.
We are here for you and will help you navigate these programs. Please contact us at 1-800-805-4649 or contact your loan officer.
The CARES Act (Coronavirus Aid, Relief and Economic Security Act) was established by the Federal Government to provide federal assistance funding. Below you will find an overview of the programs that may be available to you. Please note that every business is different, so eligibility for these programs will vary and be based on your particular situation.
Small Business Administration Paycheck Protection Program
The CARES Act includes the Paycheck Protection Program which will provide “paycheck protection loans” to small businesses so they can maintain their existing workforce and pay bills and other obligations.
Businesses with less than 500 employees, including sole proprietorships, self-employed individuals, non-profits and independent contractors, may be eligible for the Paycheck Protection Program.
Businesses can use this loan for the following reasons:
• Payroll Expenses
• Employee Salaries
• Mortgage Interest
• Rent and Utilities
Applying: Starting April 3, 2020, small businesses and sole proprietorships can apply. Click here for the application. Starting April 10, 2020, independent contractors and self-employed individuals can apply. The deadline for loan applications is June 30, 2020, but because there is a funding cap, borrowers are encouraged to apply as soon as possible. American State Bank is an SBA lender, so we can help you get the process started. Please contact your loan officer today.
SBA ECONOMIC INJURY DISASTER LOAN
The SBA Economic Injury Disaster Loans program provides small businesses with working capital loans of up to $2 million. In addition, small businesses can apply for an advance of up to $10,000. The loan advance will provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. Advanced funds will be made available within three days of a successful application and may not have to be repaid.
Businesses can use this loan for operating costs which can include:
• Fixed Debts
• Accounts Payable
• Other expenses that can’t be paid because of the disaster’s impact
This loan is not eligible for forgiveness and does not cover lost sales.
Businesses interested in the Economic Injury Disaster Loan must apply through the SBA. Click here to access this application.
*Rates are subject to change. Contact your lender for current rates. Loans subject to approval and are held by American State Bank & Trust. The Treasury Department, through the SBA, guarantee the loan.