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
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:
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:
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:
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.
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.
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.
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:
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.
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.
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.
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.
If you fit the requirements contact your Peoples commercial banker to begin the loan application process.
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.
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.
If your business meets the qualifications, contact the CDFI approved lender that you’ve worked with to begin the process.
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.
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.
Wausau Region Chamber of Commerce
Oneida County Economic Development Corporation
Rhinelander Chamber of Commerce
Minocqua Chamber of Commerce
Vilas County Economic Development Corporation
Eagle River Chamber of Commerce
Portage County Business Council
Milwaukee Economic Development Corporation
Milwaukee County Economic Development Division
Metropolitan Milwaukee Association of Commerce
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