Small Business Relief
During these unprecedented times, we want to do our best to help all our local small businesses.
As of June 29, we are no longer taking applications for the SBA Paycheck Protection Program.
If you were approved for the SBA Paycheck Protection Program through IHMVCU, you will receive an email about the loan forgiveness application.
Earlier this month, the SBA provided a revised loan forgiveness application for the Paycheck Protection Program (PPP). In addition, they created an EZ version for borrowers who:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%
Please refer to your email for instructions on how to apply for PPP loan forgiveness.
If you did not receive an email, please fill out the Contact Us form and we’ll follow-up within one business day.
Loan Forgiveness Details
Details regarding loan forgiveness for the Paycheck Protection Program
The SBA provided the following guidelines regarding loan forgiveness for the Paycheck Protection Program:
- 60% of a borrower's loan proceeds must be used for payroll costs (lower than the original 75% stated).
- Borrowers have 24 weeks to spend their loan funds while remaining eligible for forgiveness (increased from 8 weeks).
- Borrowers have until December 31, 2020 to return to pre-COVID employment levels.
If your loan is not forgiven:
- Your first payment is not due for 16 months from loan closing.
- If your loan closed before June 5, 2020 you will need to have the loan paid off by May 2022.
- If your loan closed after June 5, 2020 you have until May 2025 to payoff the loan in full.
Paycheck Protection Program details
The SBA Paycheck Protection Program is part of the CARES (Coronavirus Aid, Relief, and Economic Security) Act recently passed by Congress. Details include:
- All businesses with less than 500 employees are eligible
- Loan amounts are 2.5 times average monthly payroll or up to $10,000,000 (whichever is less)
- The funds can be used for: payroll, group health, mortgage or rent obligations, utilities, or interest on other debt obligations incurred before the covered period
- Maximum interest rate of 4%
- No collateral required
- No SBA fees
- Six month payment deferral
- In certain circumstances, the loan may be completely forgiven
Other ways to find help
We know this is a very challenging time for all and want to do everything we can to assist. Here are a few options to help your small business during this pandemic.
- EIDL Emergency Advance:This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
- SBA Express Bridge Loans: Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
- SBA Debt Relief: The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.
- Quad Cities Chamber: Regular updates with pertinent information for businesses and nonprofits in the Illinois and Iowa Quad Cities region.
- Business Interruption Grants: Grants for IL businesses experiencing extreme hardship as a result of COVID-19-related closures.