Update, Friday April 24th: The Small Business Administration has announced that it will begin accepting applications for the second round of Paycheck Protection Program loans on Monday, April 27 at 10:30am. We plan to begin accepting applications again at that time. Please watch this website and your email for additional information on Monday morning. Thank you for your business. We are all in this together.
On April 16th, the Small Business Administration (SBA) announced that the funding for the Paycheck Protection Program (PPP) has been fully exhausted and they are no longer accepting applications. While there is a possibility that Congress might enact additional funding, we are not accepting applications at this time as we cannot predict if Congress will initiate additional funding or if that the program and/or application may change significantly. When new funding becomes available, we will update our website and social media to alert any business customers who have not yet applied.
As your local community Bank, Meredith Village Savings Bank has supported our customers, communities and employees through many challenges for more than 150 years. That tradition is important to us and we are ready to help your organization through the financial repercussions of the current pandemic.
PAYCHECK PROTECTION PROGRAM
The Coronavirus Aid, Relief and Economic Security (CARES) Act offers us the opportunity to support many local businesses and nonprofit customers with the Paycheck Protection Program (PPP).
The Program provides small businesses with no-fee funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent and utilities, and are fully forgiven when at least 75% of the amount is used for payroll. Loan payments are deferred for six months and no collateral or personal guarantees are required. We strongly encourage you to visit the US Treasury’s CARES website for the latest information as updates are occurring on a daily basis.
There are some important things to keep in mind about the program:
- Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcounts decline, or if salaries and wages decrease and at least 75% of the amount must be used for payroll.
- Small businesses including nonprofits, veterans’ organizations, tribal concerns, self-employed individuals, sole proprietorships and independent contracts are all eligible, as long as they were in operation on February 15th and have less than 500 employees. Even businesses with more than 500 employees may be eligible in certain industries.
- Applicants are responsible for calculating the allowable loan amount in good faith. We know that you will need to submit supporting documentation including your tax documents. As the SBA finalizes other necessary documentation, we will keep you informed. You can also check https://home.treasury.gov/cares for the latest information as updates are happening on a daily basis.
Applicants will also be required to certify that they were operating as of February 15, 2020; that the loan is needed due to the uncertainty of the current economic conditions; that the funds will be used to retain workers and maintain payroll, lease, interest and utility payments and that they are not receiving duplicate funds for the same uses under any other Small Business Administration (SBA) program.
The Small Business Administration (SBA) has given us the approval to begin accepting applications now through June 30, 2020.
Please note that we are currently processing an unusually high volume of loan requests, so please be sure to read through the documentation and complete all necessary fields. Some areas of the form require a response from ALL principals, so you may need to submit multiple copies of some pages.
$10,000 ECONOMIC INJURY DISASTER LOANS
We also want to ensure that all local businesses and nonprofits are aware of the Small Business Administration’s (SBA) expansion of their Economic Injury Disaster Loans (EIDL). The CARES Act has temporarily expanded eligibility for economic injury disaster loans to provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID19 within 3 days of applying for the loan. This emergency advance is known as the Emergency Economic Injury Grant. The Emergency Economic Injury Grant does not need to be repaid, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Please note that we are monitoring the developments in the programs closely so that we can offer you the information that you need. We are prepared to work together with you throughout these challenging times. Thank you for your business.
We’re all in this together.