As your local community bank we are here to help you navigate the various programs that are available to you. Please ask a lender today about our COVID-19 Relief Programs for Small Businesses.
Economic Injury Disaster Loan (EIDL) – Loans are available to “for profit” and “non-profit” entities up to $2 million for working capital at low interest rates and up to 30 years to repay.
Oakland County Stabilization Fund for Small Businesses – Oakland County has developed a direct grant and loan program for those adversely effected by the COVID-19 outbreak. For those that qualify there is a grant available up to $10,000 for entities with 50 or fewer employees as well as a loan program from $50,000 up to $200,000 for entities with 100 or fewer employees. The funds can be used for working capital to support payroll expenses, rent, mortgage payments, utility bills or other similar expenses
CARES Act – Congress has passed, and the President has approved a $2 trillion emergency aid package to help individuals and small businesses during these trying times, below are the items in the bill for Small Businesses. All loans are administered and supported by the SBA and run through local banks.
- Paycheck Protection Program (PPP) – From February 15, 2020 to June 30, 2020 the Small Business Administration may provide 100% federally-backed loans to eligible businesses to help pay certain costs including payroll, rent, health benefits, insurance premiums and utilities. The loan amounts may be forgivable, subject to certain conditions. Loans are eligible to qualified small businesses and amounts are derived by a formula consisting of 2.5 times their average monthly payroll costs for the one year prior to when the loan is made (your banker can give you more detail on eligible payroll costs). There are no personal guarantees required and many other SBA requirements have been eased. It appears that, as mentioned before, that principal under certain conditions will be forgiven but interest will still need to be paid by the customer.
- Other SBA Programs – The other traditional SBA guaranteed loan programs, both the 7(a) and Express loans, also will see reduced fees and increased limits for additional funding that may be needed.