SBA Paycheck Protection Program
To our SaviBank Business Customers & Communities We Serve –
In just a few short weeks, the COVID-19 pandemic and unprecedented events have affected us all in ways none of us could have imagined. Small businesses that form the backbone of our economy, and the majority of SaviBank’s customer base, have had to suspend operations and lay off valued employees – people are hurting.
On March 27th, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law. This important measure provides much-needed financial support to small businesses in several ways. One of the most important components of this sweeping legislation is the establishment of the Paycheck Protection Program, a loan fund administered by the Small Business Administration (SBA) intended to support small businesses in retaining their most important resource – their employees. $349 billion has been allocated for this program and will be distributed to eligible businesses through SBA lenders in the form of low-interest loans to cover payroll expenses, rent, mortgage interest, health benefits and other eligible expenses necessary to keep your business operating for up to eight weeks. Payments are deferred for six months, and much of the balance may be forgiven if used to cover qualified expenses! As you may know, as an SBA Preferred Lender, SaviBank has a well-established and experienced SBA lending group – simply put, we do SBA loans, and do them well. We can help.
On April 2nd, the SBA released the Interim Final Rule regarding the Paycheck Protection Program. Eligible small businesses, including sole proprietorships, that are existing SaviBank customers as of Friday, April 3, 2020, can apply for these loans beginning April 3rd. Starting April 10th, SaviBank customers who are independent contractors and self-employed individuals can apply for Paycheck Protection Program loans. We will be updating our website frequently over the weeks ahead. One of the updates we will share is when we anticipate accepting Paycheck Protection Program loan applications for businesses that were not SaviBank customers as of April 3, 2020. While some details are yet to be fully understood regarding this new program, we are confident that we can help you navigate the program and help you keep your employees right where they belong – on your payroll!
To prepare to apply for a Paycheck Protection Program loan, there are some things you can do right now! We recommend that you gather the following documentation that will be necessary for us to process your application as quickly as we can:
- Payroll records, including IRS forms 941 and 945 covering all of 2019 and Year-to-date 2020
- A list of current employees (including salaries and wages) as of the date you apply
- Include those employees you may have laid off since February 15, and whom you intend to rehire
- Also, please identify those employees who were paid in excess of $100,000 in 2019
- Health insurance premiums paid by your company under a group health plan
- Payments made to a company retirement program
- Record of any outstanding amount of an Economic Injury Disaster Loan (EIDL) you received between January 31, 2020 and April 3, 2020
- A completed Paycheck Protection Program application – please fill out all areas carefully according to the instructions on the form!
We are looking forward to working with you through this process. Please note that, as of April 3, 2020, all the details about this program have not yet been released to the banks. While we will be working on your request, there may be delays in our ability to process your requests through the SBA. Once we get started on your loan, you can count on us to keep you updated.
Thanks for trusting SaviBank – the Wise Choice.