The CARES Act
Guidance for your business is here.
As your local community partner and a preferred lender with the SBA, Starion Bank has been hard at work to secure funding for businesses through the Coronavirus Aid, Relief, and Economic Security (CARES) Act, also known as the SBA Paycheck Protection Program (PPP).
On December 21st, Congress approved a comprehensive bill as a provision related to the Paycheck Protection Program (PPP), and it is our intention to help you be prepared. The SBA has also extended the application deadline for their Economic Injury Disaster Loans (EIDL) Program until 12/31/2021.
We are proud that these efforts are helping small business customers and their employees, providing them with some relief and stability during this crisis.
Key PPP Updates
The new bill included the following expansions and changes:
- Some 501(c)(6)s, destination marketing organizations (DMOs), housing cooperatives, newspapers, broadcasters, and radio stations are now eligible for funding
- Expands list of eligible expenses to include covered operations (software, cloud computing, and other human resources and accounting needs); property damage costs due to public disturbances that occurred during 2020 that are not covered by insurance; covered supplier costs; and covered worker protection expenditures (PPE)
- Forgiveness is simplified for loans under $150,000
- Supplies tax relief for borrowers on forgiven PPP loans by allowing the deductibility of qualified expenses related to forgiveness and borrowers who received forgiveness or subsidy payments under the CARES Act. Taxpayers will receive non-taxable treatment without any restrictions on deductibility for expenses paid with program proceeds.
For first-time borrowers, PPP loans will be available to businesses with 500 or fewer employees that have not previously received a PPP loan to help with payroll, rent, utilities, healthcare costs, and more.
Second-time borrowers are generally eligible for a loan if the borrower:
- Has no more than 300 employees
- Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020
- Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses
While we continue to process applications, we expect that the second allocation of funds will be quickly disbursed. There may be additional loan programs through the Bank of ND to support your working capital needs, so please contact your banker or call us at 888-258-6050.
You may also find more details and information regarding the SBA’s assistance at sba.gov/ppp or treasury.gov/cares.
Rest assured, we are doing everything we can to help you get through this and will continue to provide up-to-date information as it becomes available. Don’t hesitate to contact us with questions.