CARES Act for Coronavirus Relief
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), is designed to provide comprehensive relief to individuals and businesses following the unprecedented impact of COVID-19 on our communities. The Act includes approximately $2 trillion in assistance, and comes as welcome news to many - news that may save their business or help them regain personal financial stability.
$350 billion is allocated to help small businesses keep workers employed amid the pandemic and economic downturn. We're learning all the details in an effort to be ready to support you in this time of need. As a locally-owned community bank, we're well positioned to do so. Here’s what we know:
Paycheck Protection Program is a major component of the (CARES) Act which provides 100% federally guaranteed loans to small businesses. The loans may be forgiven if small business borrowers maintain their payrolls throughout the crisis or restore their payrolls afterward.
While all of the details of the Act are not yet defined, as a leading SBA lender, we are here to assist you with your financial needs. A summary of the program is below:
- A small business with fewer than 500 employees
- A small business that otherwise meets the SBA’s size standard
- A 501(c)(3) with fewer than 500 employees
- An individual who operates as a sole proprietor
- An individual who operates as an independent contractor
- An individual who is self-employed who regularly carries on any trade or business
- A Tribal business concern that meets the SBA size standard
- A 501(c)(19) Veterans Organization that meets the SBA size standard
- Loans can be up to 2.5 x the borrower’s average monthly payroll costs, not to exceed $10 million
A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of the origination of the loan:
- Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
- Interest on the mortgage obligation incurred in the ordinary course of business
- Rent on a leasing agreement
- Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
- For borrowers with tipped employees, additional wages paid to those employees
- The loan forgiveness cannot exceed the principal.
What You Can Do Now
Reach out to any OMB teammate to discuss your business and your current needs. If you do not have an existing relationship with us, please schedule an appointment to speak with one of our SBA experts.
For more information, view the “Coronavirus Emergency Loans Small Business Guide and ChecklistPDF Download” provided by the US Chamber of Commerce, or visit https://www.sba.gov/.
Be alert and protect yourself from scams.
Your financial safety is our number one priority. The Federal Trade Commission is urging consumers to be watchful of potential scams attempting to exploit the heightened concern and uncertainty associated with the Coronavirus. To learn more, visit the FTC website.
Reminder: the IRS will never call, text, message, mail or email you to verify your bank account information. For more information, visit their website.
Above all, we are here to assist you. Thank you for your continued trust.
One final note to our business customers …
We know that the spread of COVID-19 is impacting many of our small business customers. Small businesses are vital to our community. We will help all of our customers bounce back from this public health crisis as quickly as possible.
If you’re experiencing financial hardship as a result of COVID-19, we’re here to help. Please give us a call at 417.869.9000 or email us at [email protected].