CARES Act-Covid-19 (SBA) Small Business Administration Loan Programs
On Friday, March 27th, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act with programs and initiatives intended to assist business owners. Chelsea Groton Bank is committed to helping small businesses navigate through the COVID-19 loan relief options.
The SBA programs include:
- Paycheck Protection Program (PPP) up to $10 million
- SBA Economic Injury Disaster Loan (EIDL) up to $2 million
- EIDL Emergency Grants of up to $10,000
As a Preferred SBA Lender, Chelsea Groton Bank will offer loans through the CARES Act Stimulus Package.
Paycheck Protection Program (PPP):
The Paycheck Protection Program, part of the new CARES stimulus package, is a federal loan program aimed at helping small businesses who have been severely impacted by COVID-19. The U.S. Small Business Administration (SBA) has released the final details and guidance on the Paycheck Protection Program. Chelsea Groton will be accepting and processing applications for these loans effective April 3, 2020. Learn more about the program and frequently asked questions or check out the U.S. Chamber of Commerce's checklist and guide to understand the requirements for eligibility.
We know your small business is important to you and our communities. That is why we at Chelsea Groton Bank are here to help.
What we know so far:
In total, the Act puts forward around $350 billion to be used to assist small businesses and allows you to keep your employees on the payroll. Here is some general information on the Paycheck Protection Program:
- Small businesses, nonprofits, tribal businesses, and veterans' associations that have been negatively affected by the pandemic may be eligible for these loans.
- Loans through the program have a 1.0% interest rate.
- Loan recipients may be eligible for loan forgiveness.
- Business must be operational as of Feb. 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor.
- Loan amounts up to $10 million.
- Two-year full payout loan, and payments may be deferred for six months.
- Unsecured and no personal guarantee.
These loans are intended to assist struggling small businesses across the country. The money can be used for payroll, rent, utility or mortgage expenses, as well as interest expense on other debt obligations that were incurred before Feb. 15, 2020.
Here are additional resources:
If you have any questions, please reach out to your designated bank contact or send an email to SBAPandemicProgram@chelseagroton.com. We will be in touch shortly with next steps.