COVID-19 Updates, CARES Act, Resources & Community Support
During this challenging and uncertain time, our priority is providing our customers with the best service and support. Since there are times that you can't come to our lobbies for guidance, we will bring the bank to you with the assurance that we're here for you, wherever you are.
We've put together this portal with useful information about the CARES Act, PPP Loans, resources for you and your business, as well as community support information and helpful tips from 417 Magazine about supporting local businesses, staying connected and working from home.
We are here for you, wherever you are.
Paycheck Protection Program
The President extended the Paycheck Protection Program (or PPP) through August 8, 2020. Under this program, banks are able to help offer small businesses relief in the form of forgivable loans guaranteed by the Small Business Administration (or SBA) to eligible small businesses in amounts up to $10 million (with the actual amount based on the borrower’s average monthly payroll and certain other costs in the previous year).
Click here for information about PPP Loan Forgiveness.
Paycheck Protection Program
- $349 Billion SBA loan program
- Program administered by banks in partnership with SBA ending August 8
- SBA guaranteed
How it Helps You
- Provides an alternative to furloughs or layoffs
- Allows eligible businesses to cover payroll, mortgage, rent, utilities
- Small businesses with less than 500 employees, as well as nonprofits, sole proprietors and independent contractors
- 2.5x the average monthly cost of payroll incurred over the last twelve months, not to exceed $10 million
- 1% maximum rate without pre-payment penalty and generally full deferral for up to one year of principal and interest for six months
- Unsecured and no guarantees required
How to Prepare:
- Gather payroll documentation for 2019 and 2020 year-to-date
- After loan is funded, track 24 weeks of mortgage interest, mortgage payments, rent & utilities (loan forgiveness)
- Note: The CARES Act is unclear on (1) how a borrower demonstrates eligibility for a PPP loan and (2) the documentation needed to calculate the loan amount. The SBA guidance is expected to clarify these issues, thus borrowers should gather this payroll documentation now due to high demand
We understand that the PPP loan forgiveness process is important to your business. If you received PPP funding through OMB, you will need to submit your forgiveness application through us as well.
At this time, we are not able to process the forgiveness application due to the expectation of additional guidance from the Small Business Administration. We will notify our borrowers when this information becomes available. In the meantime, there are a few steps that you can take to prepare:
- Understand the eligible cost (payroll, mortgage interest, rent payments and utilities)
- Gather and keep records on eligible expenses
- Please note the following changes in accordance with the Paycheck Protection Forgiveness Flexibility Act (PPPFA)
- Drops the 75/25 payroll rule to 60/40
- Provides a five-year maturity for loans made on or after June 5, 2020, and provides an option for loans made prior to that date to extend maturity from two years to five years at the mutual agreement of the borrower and lender
- Extends the loan forgiveness period from eight weeks to 24 weeks (for loans made prior to June 5, 2020, borrowers may opt to keep the forgiveness period at eight weeks)
The SBA released a three page “EZ” Paycheck Protection Program loan forgiveness application requiring less documentation and fewer calculations than previously required. Form 3508EZ applies to borrowers who meet any one of these three criteria:
- Applied for the PPP loan as self-employed, an independent contractor or a sole proprietor with no employees
- Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of their employees (excepting laid-off employees who refused an offer to return)
- Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19
Please contact your OMB community banker if you have any questions. We will continue updating our website as more information becomes available.
Small Business Relief
Small Business Customers, we are prepared to work alongside you and figure this out together.
There is no need for you to physically come to the bank for us to support you with the many relief options available through the CARES Act. We will gladly facilitate all necessary paperwork through our website, so you can easily initiate your relief application from your computer, tablet or mobile device. For more information about the relief options available, visit our CARES Act page for small business customers.
To begin your Covid-19 Relief Application, please fill out the form that best applies on the link below. Our team will contact you as soon as possible.
OMB's Small Business Toolkit
Every day, we are committed to serving our small business customers. Now, when things are so uncertain, we want to support small businesses in every way we can. We have collected resources to help you navigate the changes, in easy-to-read downloadable guides - Learn More.