The CARES Act was recently signed in to law, creating, in part, a financial stimulus package that allocates $349 billion for small businesses. The Small Business Administration is still working out details of some of the new programs established by the CARES Act. There are 3 that may be of particular interest to Altabank customers and small businesses in general.
Paycheck Protection Program (PPP)
The Paycheck Protection Program is designed to provide a directed incentive for small businesses to keep their workers on payroll. The incentive will be fulfilled by providing loans of up to $10M for payroll and other eligible expenses, subject to credit approval. The SBA has also stated that there will be payment deferrals and the possibility of forgiveness. Loan terms are the same for all applicants.
Eligible businesses can begin applying April 3. Independent contractors and self-employed individuals can begin to apply April 10. To apply for a PPP loan borrowers will need the following documentation:
- SBA PPP application
- 2019 IRS Form 941 for all 4 quarters of the year
- 2019 W-2 forms for all employees
- 2019 1099 forms for all contract employees
- 2019 Form 33H for SUTA
- 2019 Worker’s Compensation proof of payment or bill
- 2019 year end balance sheet and income statement
- Proof of matching fund payments to employee HSA accounts, if applicable
- Proof of matching fund payments to employee retirement account, if applicable
Altabank’s priority is to help as many customers apply for funds as quickly and efficiently as possible. To accomplish this we have entered into a referral agreement with Kabbage. Kabbage has been facilitating and providing loans to small businesses since 2009. Under this agreement, customers will apply for their PPP loan with Kabbage, who will manage the process from start to finish; disperse the funds; and service the loan. Please know that Kabbage as a loan limit of $2M.
Begin your online PPP loan application here (opens a new tab)
If you have any questions please contact your Altabank loan officer.
Economic Injury Disaster Loans
Small businesses anticipating revenue loss as a result of COVID-19 can apply for an Economic Injury Disaster loan. Loans through this program are intended to provide working capital of up to $2M, subject to credit approval. Please see eligibility requirements and download an application below.
The SBA Debt Relief program will provide a reprieve to small businesses as they work through the challenges created by the COVID-19 pandemic. Under this program the SBA will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020; and will pay principal and interest of current 7(a) loans for a period of 6 months.
For more information on these and other SBA relief programs please visit www.sba.gov.