Relief Loans for Small Business
SBA 7(a) Paycheck Protection Program Relief Loan
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed during the pandemic related economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
As a participating SBA lender, Bank Star is well-versed in new programs provided under the CARES Act. Our services are available to any small business, even those that are not Bank Star customers.
Please call or fill out the form and a Bank Star representative will get back to you within 24 hours.
Loan proceeds must be used for payroll support, costs related to health benefits, employee salaries, mortgage payments, rent, utilities, insurance, and any other debt payments incurred before Feb 15, 2020.
- Loans up to $10,000,000 are available with up to a 2-year term (amortized), and six months deferral of principal
- No personal guarantees of shareholders, members of partners.
- No collateral
- NO SBA fees
- No prepayment fees
- 1% interest
Funds may not be used for business acquisition, real estate purchases, or other uses that would be done under existing 7(a) programs. Download PDF for more information.
Note: Program is set to expire on 06/30/2020 or when funds are exhausted
Under the CARES Act, businesses with less than 500 employees are eligible for relief, including:
- 501 (c) (3) nonprofit organization
- Veterans organizations
- Eligible self-employed individuals
- Independent contractors
- Sole Proprietorships
Borrowers are eligible to have their loans forgiven. A borrower is eligible for loan forgiveness equal to the amount the borrower spent on the qualifying items during the 8-week period beginning on the date of the origination loan. Download PDF for more information.
Loans can be up to 2.5 times the borrower’s average monthly payroll costs, not to exceed $10 million. Calculate average monthly payroll costs with the formula below:
Sum of included payroll costs – sum of excluded payroll costs = Total Payroll costs
Bank Star lenders are well-versed in information on the SBA loans from the CARES Act. Give us a call today to get answers to your specific questions. A Bank Star representative will get back to you within 24 hours.