We are here to help our businesses impacted by COVID-19
We understand small businesses are the backbone of our economy, and want you to know that we are here to help and support you during these unpreccedented times.
On March 27th, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act, otherwise known as the “CARES Act.” The CARES Act establishes several protections, including a SBA loan program for businesses, called the Paycheck Protection Program (PPP).
The PPP is a loan designed to provide support for small businesses to keep their employees on payroll. The best source of information about this program is at the SBA’s website under the Small Business Guidance & Loan Resources, where you can learn details about eligibility, terms, and loan forgiveness. Bangor Savings Bank will begin offering SBA Paycheck Protection Program (PPP) loans on Friday April 3, 2020 for small businesses and sole proprietorships and April 10, 2020 for independent contractors and self-employed individuals.
Below are some highlights of the relief program and how to prepare:
- Any business with less than 500 employees, including sole proprietorships, independent contractors, and self-employed persons, private non-profit organizations and veteran organizations may apply.
- The SBA will forgive the loans if all employees are kept on payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. At least 75% of the forgiven amount must have been used for payroll.
- Loan payments will be deferred for six months. No collateral or personal guarantees are required.
- The loan has a maturity of two years and an interest rate of 0.5%. Neither the government nor Bangor Savings Bank will charge any fees.
- The program will be available through June 30, 2020.
- Applicants will need to provide support for the loan amount being requested in the form of average monthly payroll information based on payroll tax documents during calendar year 2019, or if a new business, for the period 1/1/2020 through 2/29/20.
- All applicants will need to have a Bangor Savings Bank business checking account opened prior to application. For those who do not have a checking account at Bangor Savings Bank, please call your local branch to make an appointment to open a business checking account as soon as possible.
In order to help you prepare, click here to view a sample loan application. Please note that this is in draft form and intended to help you organize your information. Also, please note that all individuals owning 20% or more of the business will need to answer certain questions.
The application form and process are still evolving. We will keep you informed as soon as the process is finalized.
For more information, please email us at business@bangor.com or contact your lender.
Other helpful resources: