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Peoples State Bank

Business Resources During COVID-19

OPEN for Business

Peoples State Bank’s commercial banking team is ready to assist you during the COVID-19 containment efforts. Many of our customers—just like you—have reached out to us to find out how we can help them stay in business. Peoples wants to reassure you there are resources available to help your business rebound and establish a new normal. Peoples State Bank will update this page as we receive details on new approved programs.

Paycheck Protection Program | Economic Injury Disaster Loan | SBA Express Bridge Loan Pilot Program | WEDC 20/20 Grant | Peoples State Bank Options

SMALL BUSINESS ADMINISTRATION
PAYCHECK PROTECTION PROGRAM

PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program (PPP) has been extended by Congress for an additional $320 billion in funding for small businesses. It provides 100% federally guaranteed loans to small businesses who maintain their payroll during the crisis. Importantly, the loans may be forgiven if employers maintain or quickly rehire employees and maintain salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

HOW IT WORKS

The principal balance of the loan may be forgiven by an amount equal to all expenses for payroll, utilities, and rent or mortgage interest during the Covered Period* after the loan is granted. Any remaining principal balance will be amortized up to 5 years at 1.0% interest. Loan payments will be deferred for six months. This information is subject to SBA standard operating procedures.

*Covered Period is either (1) the 24-week (168 day) period beginning on the PPP Loan Disbursement Date, or (2) if the borrower received the PPP loan before June 5, 2020, the borrower may elect to use an 8-week (56 day) Covered Period. In no event may the Covered Period extend beyond December 31, 2020.

WHAT DO I NEED TO DO?

Due to the overwhelming volume of PPP applications we are no longer able to accept new PPP loan requests. The SBA has mandated that banks work through all requests in the order they were received and has put strict processing and funding timelines in place.  In order to serve our customers and comply with the rules of the program, we have to limit PPP loan requests at this time. 

HOW DOES THE LOAN FORGIVENESS WORK?

Under the CARES Act, a borrower is eligible to apply for loan forgiveness equal to the amount the borrower spent on the following items during the Covered Period beginning on the date of the origination of the loan:

  • Payroll costs (using the same definition of payroll costs used to determine loan eligibility)
  • Interest on the mortgage obligation incurred in the ordinary course of business
  • Rent on a leasing agreement in force before Feb. 15, 2020
  • Payments on utilities (electricity, gas, water, transportation, telephone, or internet)
  • For borrowers with tipped employees, additional wages paid to those employees

The SBA and Treasury Department have released the PPP Loan Forgiveness Application and instructions. The document informs borrowers how to apply for forgiveness of their PPP loans, consistent with the CARES Act. The form and instructions include:

  • Options for borrowers to calculate payrolls costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
  • Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the Covered Period after borrowers received their PPP loan
  • Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
  • Statutory exemptions from loan forgiveness reduction based on rehiring by December 31, 2020
  • The new exemption for borrowers whose good faith, written offers to rehire workers were declined

The SBA has provided a new EZ Form and instructions for some PPP borrowers to use. The qualifications for using the new EZ Form is based on meeting one of these criteria:

  • Applied for the PPP loan as:
    • Self-employed
    • Independent contractor
    • Sole proprietor with no employees
  • Did not reduce salary or wages for any employee by more than 25%, and did not reduce the number or hours of your employees (except laid-off employees who refused an offer to return)
  • Did not reduce salary or wages for any employee by more than 25% during the covered period and experienced reductions in business activity as a result of health directives related to COVID-19

Loan size is not a consideration in determining whether you qualify for the EZ Form.

Please watch for future updates as we expect to recieve more specific information from the SBA for borrowers on completing the application.

Borrowers—learn more with the PPP Loan Forgiveness Guide created by the WBA, or the Guide to PPP Loan Forgiveness from the U.S. Chamber of Commerce.

PPP Loan customers—click here for the Excel spreadsheet documenting qualifying payments.

Due to likely high subscription rates for the loans, it is anticipated that at least 60% of the forgiven amount must have been used for payroll. The loan forgiveness cannot exceed the principal. The amount of loan forgiveness is reduced if there is a reduction in the number of employees or a reduction of greater than 25% in wages paid to employees.

SMALL BUSINESS ADMINISTRATION
ECONOMIC INJURY DISASTER LOAN

The SBA will provide low-interest federal disaster loans to small businesses affected by the COVID-19 pandemic. Businesses must apply directly through the SBA for this loan.

HOW IT WORKS

Under the SBA’s Economic Injury Disaster Loan (EIDL) program, small businesses and non-profits may qualify for up to $2 million in loans to cover losses resulting from the pandemic. 

  • Fixed interest rates are 3.75% for small businesses and 2.75% for non-profits
  • Can provide working capital to meet needs of payroll, accounts payable, and fixed debt payments
  • May be able to extend payments for up to 30 years (terms of repayment on a case-by-case basis)
  • May not be used for expansion or to replace lost sales or profits
  • Turnaround times are currently 21 days, with loans funded 3-5 days later
  • Deferments available for up to 12 months

Businesses may request an expedited disbursement that is to be paid by the SBA within three days of the request. The advance may not exceed $10,000, and must be used for authorized costs, but is otherwise not repayable if the EIDL Loan is not approved by the SBA.

More details are available on the SBA’s website. For Frequently Asked Questions on the Economic Injury Disaster Loan click here.

BUSINESSES THAT QUALIFY

The SBA’s EIDL program is available to small businesses, small agricultural cooperatives, small aquaculture businesses, tribal small businesses, and most private non-profit organizations, including:

  • Businesses directly affected by the COVID-19 pandemic
  • Businesses that offer services directly related to the businesses in the declaration
  • Businesses indirectly related to the industry that are likely to be harmed by losses in their community (Example: Manufacturer of widgets may be eligible as well as the wholesaler and retailer of the product)
  • Sole proprietorships and independent contractors

WHAT DO I NEED TO DO?

If your business qualifies, begin by reviewing and if necessary, completing the forms listed below.

After gathering and completing these forms, visit the SBA’s application landing page to begin the loan request process. For additional assistance, the SBA can be reached at 800.659.2955. Your application for this loan—and the funding that comes with it—is through the Small Business Administration.

HOW DISASTER LOAN AMOUNT IS DETERMINED

SBA will look at the last three years tax returns along with the current YTD profit & loss statement to determine what the business could have paid if the disaster would not have occurred. 

SMALL BUSINESS ADMINISTRATION
SBA EXPRESS BRIDGE LOAN PILOT PROGRAM

The Small Business Administration is making available the Express Bridge Loan Pilot Program to small businesses to help overcome the temporary loss of revenue. Peoples State Bank is an SBA Express Lender  and can assist our small business customers with this loan.

HOW IT WORKS

Loan amounts are up to $25,000 with a 50% SBA Guaranty and are intended to bridge the gap while also applying for a SBA Economic Injury Disaster Loan. Once approved for an EIDL loan, the proceeds are used to pay off the Express Bridge Loan. There is limited paperwork to apply.

BUSINESSES THAT QUALIFY

According to the SBA requirements for the Express Bridge Loan Pilot Program, you must have been a Peoples State Bank business customer on or before March 13, 2020 to be eligible to receive this loan through Peoples.

WHAT DO I NEED TO DO?

If you fit the requirements contact your Peoples commercial banker to begin the loan application process.

WISCONSIN ECONOMIC DEVELOPMENT CORPORATION
20/20 GRANT

The Wisconsin Economic Development Corporation (WEDC) is making available Small Business 20/20 Program grants of up to $20,000 to existing loan clients to assist with cash-flow challenges during the COVID-19 containment efforts. For Frequently Asked Questions on WEDC Small Business 20/20 click here.

BUSINESSES THAT QUALIFY

Your business must have a loan through a community development financial institution (CDFI) in Wisconsin. (Peoples State Bank is not a CDFI approved lender, but we’re making this information available to all our customers.) Businesses must be in good standing as of March 1, 2020, with 20 or fewer PT/FT employees, and less than $2 million in annual revenues. Preference for the grants will be given to service and retail businesses.

WHAT DO I NEED TO DO?

If your business meets the qualifications, contact the CDFI approved lender that you’ve worked with to begin the process.

PEOPLES STATE BANK
COMMERCIAL LENDING OPTIONS

Peoples State Bank’s commercial banking team is poised to assist you with other lending needs and business lines of credit. Contact your commercial banker for more information, or to discuss options that may be available. 

CASH MANAGEMENT OPTIONS

We offer programs designed to help maintain control of your cash flow and daily cash management, especially in a digital environment.

  • Direct Deposit Payroll – setup direct deposit so your employees do not need to deposit physical checks
  • Automated Clearing House (ACH) – a dependable collection and payment system to manage your business transactions
  • On-site Deposits – provides you and your staff the ability to scan the checks your business receives into a computer and then transmit the images to us providing a quick, secure option to enhance your cash flow
  • Fraud Protection – keeps your financial transactions more secure
    • ACH Blocks & Filters – helps prevent unauthorized ACH transactions
    • Positive Pay – helps prevent unauthorized checks from being processed
    • Account Reconciliation Service – reconcile your business accounts using a range of options including partial and full reconcilement
    • Online & Mobile Alerts – set alerts and monitor transactions impacting your accounts from your desktop or mobile device
  • Digital and Mobile Banking – contact us to start enrollment
  • Sweeps & Zero Balance – maximize your cash flow by setting up automatic transfers of money between accounts
  • Merchant Services – provides equipment and processing services you need to accept most types of payment options

The COVID-19 pandemic reminds all of us that employees, financial operations, supply chains, and customer relations can all be affected. Fraudsters and cyber-criminals are also taking this opportunity to catch your business with its guard down.

That’s why every business owner needs a plan to meet disruptions with clarity, confidence, and relative calm. And you need a bank partner who is there to assist you through the choppy waters. Your business objectives are our priority. Contact your Peoples State Bank commercial banker today.

LOCAL RESOURCE LINKS

MARATHON COUNTY

Wausau Region Chamber of Commerce

McDEVCO

ONEIDA COUNTY

Oneida County Economic Development Corporation

Rhinelander Chamber of Commerce

Minocqua Chamber of Commerce

VILAS COUNTY

Vilas County Economic Development Corporation

Eagle River Chamber of Commerce

PORTAGE COUNTY

Portage County Business Council

MILWAUKEE & MILWAUKEE COUNTY

Milwaukee Economic Development Corporation

Milwaukee County Economic Development Division

Metropolitan Milwaukee Association of Commerce