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Covid 19 Business Resources

CARES Act Passes Offering Support to Small Businesses

 
On Friday, March 27th Congress passed “The Coronavirus Aid, Relief, and Economic Security Act” (CARES Act), which included the “Paycheck Protection Program” (PPP) for small businesses.  
 
At Flatwater Bank we are here to help you navigate through these unprecedented challenges by keeping you updated on resources available to you and your business on the local, state and national levels.  
 
Below are two options that were offered as part of the CARES Act that we think may be of immediate benefit to businesses we work with. 
 
Don’t hesitate to reach out to your loan officer, our Investment Service Center or one of our team members for additional information. 
 

 *Flatwater Bank has prepared this information with the most current information we have received.  There has been an evolution in details as programs are being finalized.  This is the most current information we have available.  Refer to the treasury.gov and SBA.gov websites for additional details. We are committed to keep you updated as we receive additional information.  Information updated as of 5/4/2020

  • This resource summarizes the PPP Program
  • Funding is limited so apply soon!
  • Maximum Loan Amount = 1 month of your average monthly payroll costs x 2.5 (note:  payroll cost will be capped at $100,000 annualized for each employee).
  • Does it include loan forgiveness/grants?  You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utility payments over the 8 weeks after getting the loan (up to 75% to include payroll).  You will not receive forgiveness if you do not maintain your staff on payroll.
  • Interest Rate = 1.00% fixed rate
  • Loan Term = 2 years
  • Who do I apply with?  Flatwater Bank is an SBA approved lender and will expect to be able to submit applications again on Monday, April 27th.
  • Documents to assist in getting started:  2019 Form 941, 943, or W3's, 2019 tax return (Schedule C, or F for self employed applicants), 2019 Profit/Loss Statement, general business/ownership information
  • Here is a summary of FAQs on the program.

 
PPP Loan Forgiveness: 
We will begin to accept forgiveness requests when we get additional guidance from the SBA.  Please check this page for updates.
 
We have put together this resource to help you prepare for forgiveness.

This is based on the most recent information we have and we expect additional clarification from the SBA soon.
 
  • The SBA is currently accepting new EIDL applications on a limited basis only to provide relief to U.S. agricultural businesses.
 
  • Maximum Loan Amount = $2 million based on economic injury as determined by SBA
  • Does it include loan forgiveness/grant?  SBA may provide up to $10,000 in emergency grants to EIDL applicants that need it.  Applicants do not need to repay the grants even if the loan is denied.
  • Interest Rate = 3.75% for businesses and 2.75% for non-profits
  • Loan Term = up to 30 years
 
 

picture of desktop and calculatorThe U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses that are suffering substantial economic injury as a result of the novel coronavirus.

Uses for this loan option, include paying fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact. The interest rate is 3.75% for small businesses without credit available elsewhere; businesses with credit available elsewhere are not eligible. The SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower's ability to repay.

For more details on the program, visit www.sba.gov/coronavirus.

If you are thinking of applying, here's what you can do to get started now with forms you'll need and be ready to go when the portal opens:

  • Tax Information Authorization (IRS Form 4506T) for the applicant, principals and affiliates.
  • Complete copies of the most recent Federal Income Tax Return.
  • Schedule of Liabilities (SBA Form 2202).
  • Personal Financial Statement (SBA Form 413).
  • Profit and loss statements  
  • Monthly sales figures (SBA Form 1368)
  • Small Business Administration (SBA) Disaster Loan Information and Resources

Nebraska Department of Economic Development:
The Department of Economic Development is partnering with Governor Ricketts to inform and assist businesses during Nebraska’s ongoing response to COVID-19. The department’s Field Services Team is working consistently with business leaders in these regions to address ongoing COVID challenges. Contact numbers for our staff in these regions are listed on the site.

Nebraska Chamber of Commerce and Industry:
This page is designed to provide the latest information to Nebraska businesses from the Nebraska Chamber of Commerce and Industry.  Included on this page are resources available to from state and federal agencies.

Nebraska Department of Labor:
The page provide unemployment program information and assistance from the Nebraska Department of Labor.

IRS:
Learn more about the U.S. Treasury Department, Internal Revenue Service (IRS), and the U.S. Department of Labor (Labor) announcement regarding small and midsize employers who can begin taking advantage of two new refundable payroll tax credits, designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing coronavirus-related leave to their employees.

Workplace Safety (OSHA):
This guide covers topics related to ensuring your workplace is safe, tips on reducing risk, steps to take if a COVID-19 outbreak would occur and much more.

Picture of padlockAt times like these, we especially need to be wary of business fraud. We ask that you please be diligent about confirming the authenticity of payments that are being sent out from your business. This would include checks, wires, bill and ACH payments, and any other forms of payment.
 
If you receive a request, it’s vital to do out-of-band (two-factor) authentication BEFORE sending any payments to vendors, which requires a secondary verification method through a separate communication channel. Be suspicious of unusual requests and verify any before proceeding – for example: if a vendor requests bank and/or account information be changed through an email. Before you make the change, you should confirm it is legitimate by calling the vendor at an already-established phone number.
 
Always be on the lookout for the various fraudsters out there. They wouldn’t think twice about scamming you or your company and will take advantage of these challenging times! We also recommend that you check your business online banking account regularly and review transactions posted to your account, ensuring each is legitimate and reflects your business activity. If you see any discrepancies, contact your bank immediately.