SBA Coronavirus Relief Loan

Friday, April 24: The second portion of the CARES Act has been signed into law. The SBA  has issued a new Interim Final Rule and is expected to open the loan portal by Monday, April 27.

If you plan to apply, we encourage you to become familiar with the program, especially the lessons we learned during the first round of lending. If you haven't already contacted a Relationship Manager, please do so - or complete the form below - as soon as possible.

Citizens State Bank is an experienced Small Business Administration (SBA) lender, and our SBA experts can guide you through options to help your business through these challenging times.

On Friday, March 27, the Federal stimulus bill in response to the COVID-19 virus, known as the CARES Act, was signed into law. There are many key provisions in the legislation that benefit small businesses and nonprofit agencies, including the small business loan program known as the Paycheck Protection Program (PPP). Applications for the Paycheck Protection Program Loans can begin to be submitted starting April 3rd, 2020 for small businesses and sole proprietorships.

The following is a summary of benefits of a Paycheck Protection Program loan based on the guidance from the Treasury department and the SBA.  For complete details please click here

Summary of benefits of the Paycheck Protection Program loans:

  • Loans available for all businesses with 500 or fewer employees. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standard for those industries (additional details here)
  • Loans will be forgiven as long as:
    • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
    • Employee and compensation levels are maintained.
    • Subject to conditions found here
  • Loans amount can be for up to 2.5X the average monthly payroll costs from last year, with a maximum loan amount of $10 Million.
  • Interest rate will be fixed at 1.00% *(Per the SBA's Interim Final Rule released on April 2nd)
  • Loan payments will be deferred for 6 months
  • Loan term will be 2 years
  • Loans will have no pre-payment penalty
  • No collateral or personal guarantee required
  • The Paycheck Protection Program is open through June 30, 2020

For a list of documents needed to apply please click here

This is a rapidly evolving program that contains many provisions. We are working diligently to understand the documentation requirements and application process thoroughly, so we can quickly help our clients apply for the loans. To be notified when the program becomes available, or if/when changes are made, or if you just have questions about the program, please complete the following form. A Relationship Manager will then be in touch to discuss your particular financial situation and your best next steps.

We are working diligently to keep this page updated as new information becomes available. You can also find the most recent documentation through the US Department of the Treasury and the Small Business Administration (SBA)

How Can We Help?

If you have questions or would like to be notified of any changes, please complete this form and we'll be in touch.

Customer Care: 888-529-5450
Monday - Friday 8:30 - 5:00

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