Commercial

Economic Injury Disaster Loans (EIDLs) The Small Business Administration (SBA) has implemented relief loans for businesses affected by the COVID-19 situation. Loans include Economic Injury Disaster Loans (EIDLs) to provide access to working capital, and SBA 7(a) Relief Paycheck Protection Program (PPP) to retain workforce through debt forgiveness for payroll and other eligible expenses during a defined covered period. A Preferred SBA Lender, SouthStar Bank is here to help and discuss available options for your business. NOTICES: The deadline to apply for the Paycheck Protection Program (PPP) was August 8, 2020. Learn more about PPP loans. Through Economic Injury Disaster Loans (EIDL), the SBA can provide up to $2 million to help meet financial obligations and operating expenses that could have been met had the Coronavirus disaster not occurred. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. EIDL Qualification Businesses who may qualify include: Small businesses and private, non-profit organizations within designated disaster areas of a state or territory Businesses suffering substantial economic injury as a result of COVID-19 EIDL Application To apply for an EIDL, visit disasterloan.sba.gov/ela. Required documentation includes: Completed SBA loan application (SBA Form 5) 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) Other Information that may also be requested: Complete copy, including all schedules, of the most recent Federal income tax return for principals, general partners or managing member, and affiliates (see filing requirements for more information) If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year A current year-to-date profit-and-loss statement Additional Filing Requirements (SBA Form 1368) providing monthly sales figures Learn more about Economic Injury Disaster Loans.   SBA 7(a) Relief Paycheck Protection Program (PPP)   The CARES ACT authorizes up to $349 billion in forgivable loans to small businesses who maintain payroll during the COVID-19 crisis. Paycheck Protection Program (PPP) loans may be used for employee payroll, salaries, mortgage interest payments, rent and utilities. Loans will be eligible for forgiveness if workforce and pay levels are maintained. PPP Qualification Businesses who may qualify include: Businesses in need of funds to maintain workforce Businesses utilizing funds for payroll, mortgage obligations, rent or utilities All businesses with 500 of fewer employees. Businesses in certain industries may qualify with more than 500 employees if they meet applicable SBA employee-based size standards for those industries. PPP Application PPP applications will be accepted through your local lender beginning April 3, 2020. The SBA is continuing to provide guidance to the banks. At this time, we recommend gathering the following: Completed Paycheck Protection Program Application (SBA Form 2483) 2019 IRS Quarterly 940, 941, or 944 payroll tax reports Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the […]