Notice:
The Small Business Administration has just informed trade associations that Paycheck Protection Program funding has been exhausted as of May 4, 2021 and that the PPP application portal will stop accepting applications for loans from most lenders.
Lots of resources on this program are available at the U.S. Treasury website. Our team is available to answer your questions too.
Call 405-224-2200 if you have any questions, or you need an appointment to share paperwork. We can help you!
FNBT Business Lending
P.O. Box 1130
Chickasha OK 73023
405-224-2200
The COVID-19 quarantine was sudden and is unprecedented. The U.S. Government acted quickly to provide relief, but many questions remain for business owners, sole proprietors, nonprofits and churches.
What is the SBA Cares Act Program?
In response to the COVID-19 program that affected American companies of all sizes, the Federal Government established this new $349 billion lending program, modeled on the existing SBA 7(a) program, with 100% government guarantee (as opposed to 75% guarantee for 7(a) loans).
Which businesses are eligible?
Small businesses and eligible nonprofit organizations, Veterans organizations and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
- SIZE: The small business category includes firms up to 500 employees, but businesses up to 1,500 employees might qualify depending on the sector and circumstances.
- NONPROFITS: 501 (c)(3) non-profits with fewer than 500 employees.
- INDEPENDENTS: Sole proprietors, the self-employed, and independent contractors.
- Borrowers whose business or nonprofit were created on Feb. 15, 2020, or after are not eligible.
- Farmers are eligible this time. Your eligibility will be based on your gross income. Refer to Schedule F on your tax forms.
Are regulations streamlined?
- Usually the SBA requires “no credit elsewhere” for applicants, but that condition is waived
- No personal guarantee or collateral is required.
- Lenders will defer fees, principal and interest for no less than 6 months and no more than 1 year.
Is there a maximum I can borrow?
- Yes. You can borrow up to 2.5 times your average monthly payroll, with a $10 million maximum for first-time borrowers. For second-draw borrowers, there is a $2 million maximum. For businesses with an NAICS code that begins with 72-, you are eligible for 3.5 times your monthly payroll. Part of this can be forgiven. See below.
What about fees?
- All SBA guarantee fees are waived.
Is there a restriction on purpose?
This program provides small businesses with funds to pay payroll costs including benefits, as well as interest on mortgages, rent and utilities. The employer must certify how the loan is used. You have 24 weeks to exhaust the loan funds.
Can my loan be forgiven?
You must spend 60% of the borrowed funds for payroll costs. The remainder must be used on interest payments on mortgages, rent payments, and utility payments. Your loan forgiveness will be reduced if you reduce employment or salaries.
Are there scammers working to fool applicants?
Yes. If someone reaches out to you and offers you forms that you must pay for, it’s a scam. The actual federal “IRS.gov” forms are free. We at First National Bank are ready to assist you, and we don’t charge anything for helping you with these forms.
We’re here to help. Call us if you need assistance. Customer Service is available Monday through Friday 7 a.m. to 6 p.m. and Saturday, 8 a.m. to noon. Call 405-224-2200.
First National Bank & Trust Co.
www.bankFNBT.com / 11 locations
Member FDIC / Equal Housing Lender