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COVID-19 Relief Loans
Has your organization been affected by Coronavirus?
Doing your part to keep your employees, customers, and leadership healthy during the Coronavirus crisis has required great sacrifice for many businesses and organizations. If your business has been financially impacted by COVID-19, there are a number of federal loan options available which may offer relief.
York Traditions Bank realizes that this is an especially stressful time for business owners as you maneuver the overwhelming and constantly changing information available about the loan types. Your Business Services Partner can help you navigate this process and offer expert advice so that you can choose the right option for your organization and situation.
Click on the Loan Comparison Chart button for a general comparison of all options, or read more specific details in the product tabs below.
Paycheck Protection Program Loan Guarantee
This program is scheduled to end on Saturday, August 8, 2020 according to the Small Business Administration.
Part of the SBA 7(a) program, the Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses.
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.
Under this program:
- Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
- Loan payments will be deferred for ten months.
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the period earlier of (a) 24 weeks after loan issuance or (b) December 31, 2020.
Loan Forgiveness Details
If you have a loan through the Paycheck Protection Program, 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. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll 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 24-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by December 31
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
The Paycheck Protection Plan Flexibility Act was signed into law on June 5, 2020. York Traditions Bank is developing a tool to streamline the forgiveness process and make the application easier to complete. We will email all loan recipients as this tool is available.
How to Apply
This program ends Saturday, August 8, 2020. Complete applications submitted by Friday, August 7 at 12 p.m. will be accepted and reviewed.
If you have questions about the Paycheck Protection Program, refer to our Frequently Asked Questions section.
If you cannot find answers to your specific question in our FAQ section, please email YTBPPP@yorktraditionsbank.com.
The Federal Reserve Main Street Lending Program
York Traditions Bank is a participant in the Main Street Lending Program’s New Loan Facility.
The MSLP is designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.
Loans originated under the program have several features that will help businesses facing challenges. The program offers 5-year loans, with floating rates, and principal and interest payments deferred (as indicated in the details listed below) to assist businesses facing temporary cash flow interruptions.
There are a wide range of loan amounts that may support a broad set of employers.
MSLP New Loan Facility Details
Eligible Borrowers: Businesses established before March 13, 2020 that are eligible according to the terms of the Main Street Lending Program. Click here for the Term Sheet and see details under Eligible Borrowers.
Minimum Loan Amount: $250,000
Maximum Loan Amount: The lesser of $35 million OR 4 times the business’ 2019 EBITDA (includes all of the borrower’s existing and proposed debt)
Loan Term: 5 Years
- Year 1: No principal or interest payments
- Year 2: Interest-only payments due (year 1 Interest is capitalized)
- Year 3: 15% of Principal + Interest due
- Year 4: 15% of Principal + Interest due
- Year 5: The remaining 70% of Principal + Interest due
Interest Rate: Floating at 1M LIBOR + 3%
Fees: Up to 2% of the loan amount. 1% is passed on to a Federal Reserve Bank’s Special Purpose Vehicle (SPV) which will purchase 95% of the loan
How to Apply
Contact Mike Huson, Managing Director of Business Services, to discuss if the MSLP is right for your business.
SBA CARES Act Proposed 7(a) Changes
The 7(a) loan program is the Small Business Administration’s primary program for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan.
The CARES Act has prompted the SBA to change some of the guidelines for these programs. Please consult with your Relationship Manager to determine if revisions to SBA 7(a) loans may affect you.
Read more about the 7(a) loan types here.
COVID-19 Relief Pa Statewide Small Business Assistance
The COVID-19 Relief Pennsylvania Statewide Small Business Assistance program will provide grants ranging from $5,000 to $50,000 to small businesses that have been economically impacted by COVID-19. This is not a first-come, first-served program. There will be multiple rounds of application windows.
Application window for the first round of funding is expected to open on June 30th and remain open for 10 business days. Applications will continue to be accepted after 10 business days but will be considered for future rounds of funding. Additional rounds will be announced soon.
More information can be found by visiting pabusinessgrants.com
Economic Injury Disaster Loan Assistance Program
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.
SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.
The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
- Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
Eligible agricultural businesses may apply for the Loan Advance here.