Commencement Bank issued the following announcement on April 1
Commencement Bank’s team of lenders is working diligently to stay informed on the recently approved federal loan programs as part of the CARES Act. The CARES Act is a stimulus package that was developed in response to COVID-19 in support of the American economy and business community severely impacted by the virus.
Below is a summary of each federally approved loan program as of March 31, 2020 intended to guide you in the direction that best fits your financial needs. Additional qualification information is available at sba.gov or by calling your Commencement Bank lender.
Commencement Bank will be accepting Paycheck Protection Program applications starting April 3, 2020. Please speak with your banker regarding application requirements. Loan applications for the additional programs below will be accepted and processed as directed by the Small Business Administration (SBA). Please contact your banker for guidance on what information you can prepare while we await direction from the SBA.
PAYCHECK PROTECTION PROGRAM
To cover the capital cost of retaining employees
- Loan size determined by normal payroll costs, with a maximum of $10 million
- Proceeds can be used to cover payroll costs, health care benefits, and other purposes as outlined by the SBA
- Limited forgiveness available based on qualifications
EMERGENCY ECONOMIC INJURY GRANTS
A quick infusion of a smaller amount of cash for short-term needs
- For small businesses and non-profits with fewer than 500 employees
- Grants available up to $10 thousand for businesses that apply for an EIDL
- EIDLs are low interest loans up to $2 million
- Principal and interest deferral available upon qualifications
To ease fears about keeping up with payments on current or potential SBA loans
Eligible for existing and new, non-disaster 7(a), 504, and microloans
Must meet requirements based on size, location, ability to repay, and business purpose
7(a) loans up to $5 million, 504 loans up to $5.5 million, and microloans up to $50 thousand
Original source can be found here.
Source: Commencement Bank
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