Small Business Relief
During these unprecedented times, we want to do our best to help all our local small businesses.
SBA PPP UPDATE – 1/12/21
On Jan. 11, the SBA started accepting PPP loan applications only from financial institutions with a Community Development Financial Institution (CDFI) designation.
Please complete this form and we’ll email you when the IHMVCU PPP Portal is open and accepting applications. It’s important to know the program rules have changed.
Loan Forgiveness Details
Borrowers may be eligible if the funds were used for:
- Eligible payroll costs
- Payments on business mortgage interest payments
- Utilities during any period between 8-24 weeks after disbursement
A borrower is eligible to apply for forgiveness once they’ve used all loan proceeds for which they are requesting forgiveness. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.
Have questions? Check out this helpful FAQ.
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:
- Most businesses with less than 500 employees are eligible
- Loan amounts are 2.5 times average monthly payroll or up to $2,000,000 (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
- No collateral required
- No SBA fees
- 16 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.