Coronavirus Relief Programs for Businesses
04/01/2020
By: Fidelity Bank
To Our Business Clients,
Fidelity Bank is eager to start providing local businesses with the assistance they need thanks to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) that was recently signed into law! As you know, the Act is aimed at providing financial relief in response to the coronavirus (COVID-19) pandemic. One of the core pieces of the CARES Act is the provision of $349 billion for small businesses through federally backed loans under a modified and expanded Small Business Administration (SBA) 7(a) loan guaranty program called the Paycheck Protection Program (“PPP”). Congress has designed the program to make funds available to qualifying businesses starting April 3rd for small businesses and starting April 10th for independent contractors and self-employed individuals through approved banks like Fidelity Bank. For a more comprehensive resource CLICK HERE.
Applications will be accepted through June 30, 2020, or while funding is available. Starting April 3, 2020, small businesses can apply for and receive loans to cover their payroll and other certain expenses through existing SBA Lenders. Starting April 10, 2020 independent contractors and self-employed individuals can apply. Clients interested in obtaining a PPP loan are encouraged to begin their submission with us online at https://sba.bankwithfidelity.com/. To make the process as simple, easy and fast as possible, please review the verification documents needed here.
Beware of COVID-19 Scams
If you receive calls, emails, or other communications claiming to be from the Treasury Department and offering COVID-19 related grants or stimulus payments in exchange for personal financial information, or an advance fee, or charge of any kind, including the purchase of gift cards, please do not respond. These are scams. Please contact the FBI at www.ic3.gov.
Fraud involving payment of Federal taxes should be reported to the Treasury Inspector General for Tax Administration.
In addition, business clients may want to consider applying for the Economic Injury Disaster Loan via the SBA website HERE. The EIDL provides for longer-term loans with favorable borrowing terms. Additionally, while businesses may be eligible for loans under both programs, they are unable to seek recovery under the EIDL loan for the same costs that are covered by a PPP loan.
The EIDL also permits applicants to request an advance of up to $10,000 to pay allowable working capital needs; the advance is expected to be paid by the SBA within 3 days. This advance is essentially a grant and is not required to be repaid, even if the application is denied, but the amount of the advance must be deducted from any loan forgiveness amounts under a PPP loan.
It is Fidelity Bank’s intention to provide as much information as possible to our clients during this unprecedented event. We encourage clients to review both loan programs. Applications for EIDL loans should be submitted directly to the SBA, while PPP loans will be available from Fidelity Bank.
Fidelity Bank is here for you and HERE FOR GOOD.
Sincerely,
Chris Ferris
President & CEO
Fidelity Bank