Congress has approved an additional $310 billion in funding for small business loans through the Paycheck Protection Program.
Of that, $30 billion was set aside for community banks, like Peoples Bank, to help small businesses negatively impacted by the COVID-19.
If you are a Peoples Bank business customer (loan or deposit) and have not submitted an application, please contact your personal bankers at 515-962-1400 as soon as possible. They will walk you through the process.
This is a second round of funding to come from the CARES Act, which was made available in early April to help small and mid-sized businesses with cash flow during the COVID-19 crisis. The first $349 billion ran out in 14 days.
Peoples Bank was able to fund 92 applications from the initial funding round for a total of $12.4 million going back into the hands of local business owners. The average loan size was $135,023.
“Our small business customers represent the lifeblood of our local economies, so we have to do everything we can to support them right now,” said Peoples Bank President/CEO Kevin Halterman. “These funds will not cover all of their expenses and responsibilities, but everything helps.
“Our job is to be the source of calm during this chaotic time,” Halterman said.
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;