Apply for a SBA PPP Loan at TS Bank
As part of the Coronavirus Aid, Relief and Economic Security or CARES Act, the government has released the Paycheck Protection Program (PPP). Under this program, banks will offer small business loans through the Small Business Administration (SBA).
4/27/2020 UPDATE: As of 9:30 am this morning, an additional $250 billion of SBA PPP funds were released as part of the Coronavirus Aid, Relief and Economic Security or CARES Act.
6/05/2020 UPDATE: On Friday, June 5, 2020, President Trump signed a bill called the Paycheck Protection Program Flexibility Act. The bill extends the forgiveness period for all PPP loans from 8 weeks to 24 weeks from the date of loan funding. The bill would also reduce the minimum amount of proceeds that businesses must devote to maintaining payroll from 75% to 60% in order to receive forgiveness. Additionally, it would extend the maturity period for unforgiven PPP loans. (1)
7/07/2020 UPDATE: The SBA PPP Loan Program has been extended from June 30, 2020 to August 08, 2020.
Small businesses, some nonprofit organizations, independent contractors and self-employed individuals can apply for this loan. The Paycheck Protection Program is a loan designed to provide direct incentive for small businesses to keep their workers on payroll. According to the SBA, the loans will be forgiven when all employees are kept on the payroll for eight weeks and the money is used for payroll costs, interest on mortgages, rent and utilities. The program is available now through August 08, 2020.
Who Can Apply?
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Sole proprietors, independent contractors, and self-employed persons (2)
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of 2 years and an interest rate of 1%. (2)
How to Apply
To begin the process, please reach out to one of our Market Presidents:
Council Bluffs/Treynor: Dave Wise Dave.Wise@tsbank.com
Atlantic: Dan Rossell Dan.Rossell@tsbank.com
Corning: Tysen Christensen Tysen.Christensen@tsbank.com
For any additional questions, please feel free to reach out to email@example.com or call us toll free at 844-487-3030.
At TS Bank, we IGNITE PROSPERITY® by helping our clients do more with their money. Whether it’s saving a little extra cash each month or accomplishing a long-term strategy, our goal is to help you transform your financial life. Call and schedule an appointment today, one of our team members would love to help you do more with your money at TS Bank. TS Bank has eight locations in central and southwest Iowa. For more information visit tsbank.com or call 844-487-3030. #igniteprosperity