First National Bank and Trust is participating in the Small Business Association’s (SBA) Paycheck Protection Program (PPP) federal loan program aimed at helping small businesses and select nonprofits severely affected by COVID-19.
CLINTON — First National Bank and Trust is participating in the Small Business Association’s (SBA) Paycheck Protection Program (PPP) federal loan program aimed at helping small businesses and select nonprofits severely affected by COVID-19.
The program began on Friday, April 3. The $349 billion program provides payroll assistance in the form of 10 percent guaranteed loans from the SBA.
First National Bank is currently accepting applications for existing clients and is also inviting new businesses and nonprofits across Central Illinois who are interested in this program to call 217-935-2148 to be connected with the banking team.
“We believe that a community is only as strong as its small businesses, and we are here to support them during this unprecedented time,” said Josh Shofner, president at First National Bank.
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. According to the SBA, they will forgive all loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
According to the SBA, the loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75 percent of the forgiven amount must have been used for payroll).
Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of two years and an interest rate of 1 percent.
“This virus has attacked the things we hold dear: local communities, local businesses, local non-profits and local jobs. Whether a business employs three people or 500, those businesses and those jobs matter to us. Recognizing the importance of the SBA PPP program for our communities, we have had teams working around the clock to allow us to be one of the earliest participants in this unprecedented program,” said Kevin Forristall, Executive Vice President.
“Since the SBA’s final ruling, our number one company priority has been to mobilize resources to make as many PPP loans as possible. I’m proud of the way our teams have risen to the occasion to deliver in our community’s time of need. We want to protect as many paychecks as we possibly can. If your business has been impacted by the virus, we are here to help.”
If you wish to begin the SBA PPP application process at First National Bank, please call 217-935-2148 and ask for Josh Shofner.