Attention small business owners: There are a number of state and federal programs available if your business is experiencing a hardship as a result of the COVID-19 virus. We will provide updates on the programs as more information becomes available.
U.S. Small Business Administration (SBA): Economic Injury Disaster Loan Assistance
Information: https://www.sba.gov/disaster/apply-for-disaster-loan/index.html
The SBA offers Economic Injury Disaster Loans to help small businesses meet working capital needs caused by a natural disaster. The loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
U.S.: CARES Act Assistance for Small Businesses Paycheck Protection Program
Information: Please contact your lender or personal banker by calling 515-962-1400. They have the instructions and documentation you need to apply.
The CARES Act establishes the Paycheck Protection Program, a $350 billion loan program to help small and mid-sized businesses with cash flow during the COVID-19 crisis. If the business maintains their payroll for 8 weeks, the portion of the loan used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
Who is eligible to receive the loans?
- Businesses with 500 or less employees;
- Businesses that meet current Small Business Administration (SBA) size standards;
- Self-employed individuals and “gig economy” workers;
- Certain nonprofits, including 501(c)(3) organizations and 501(c)(19) veteran organizations; and
- Tribal businesses with under 500 employees.
What is the size of the loans?
The maximum loan size is 250% of the employer’s average monthly payroll, or $10 million (whichever is less).
What can loans be used for?
- Payroll costs (salary, wages, and payment of cash tips up to annual rate of $100,000 per employee);
- Continuation of health care benefits during periods of paid sick, medical, or family leave, and insurance premiums;
- Employee salaries, commissions, or similar compensations;
- Payments of interest on mortgage obligations;
- Rent, including rent under lease agreement;
- Utilities; and
- Existing allowable uses under 7(a) program, which includes purchasing inventory, supplies, raw materials, and working capital
