COVID-19 Update: Business
CommunityAmerica is committed to creating lasting relationships with the local business community and the individuals who work so hard to make them successful. We know there are many questions concerning COVID-19 and its impacts on your business. We are a Small Business Administration (SBA) lender, and we are here to help you. Whether you are looking for SBA loans, payment deferment options, loan extensions or advice, our team is ready to assist you.
PPP Status and Application
The Paycheck Protection Program application deadline is June 30, 2020. If you have questions, please call our business banking team at 913.905.7012.
PPP Loan Forgiveness
In addition to ensuring PPP funds are spent only on qualifying expenses, forgiveness is also based on maintaining, or quickly rehiring, employees and salary levels. We have put together further resources for navigating the loan forgiveness portion of the PPP process on a separate webpage here.
PPP Funds & Qualified Expenses
The Paycheck Protection Program was created to help you keep your employees at their current base pay and cover other essential business costs. To be 100% forgiven, 60% of funds must cover payroll costs, while up to 40% can be used for other qualifying costs (like rent, leases and utilities) over the now extended 24-week period starting the date the funds are received, or until December 31, 2020, whichever comes first. Learn more about qualifying for loan forgiveness here.
Any remaining loan amount, after forgiveness, will need to be repaid. You will not be required to start your PPP loan repayment until your forgiveness application has been completed and processed, and you will have up to 10 months after the end of your covered period to apply for forgiveness. After that time, you will be required to pay the loan back over the remaining 5-year period with a fixed interest rate of 1%.
The SBA defines qualifying payroll costs as:
- Full-time and part-time employee (who lives in the U.S.) compensation in the form of salary, wages, commissions or anything similar
- Cash tips or equivalent, based on employer records of past tips or reasonable, good-faith employer estimates if there are missing or no historical records
- Vacation, parental, family, medical or sick leave payments
- Healthcare coverage, including insurance premiums, and retirement
- State and local tax payments based on employee compensation
- Wage, commission, income or net earnings from self-earners or similar compensation
No more than 40% of funds can be used to cover:
- Costs related to group healthcare benefits during paid sick, medical or family leave, as well as insurance premiums
- Mortgage interest payments (not including mortgage prepayments or principal payments) - as long as the mortgage was signed before February 15, 2020
- Rent — as long as the lease agreement was in effect before February 15, 2020
- Utilities — includes expenses such as electricity, water, gas, sewage, telephone services, internet and transportation costs, as long as service began before February 15, 2020
The Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was signed into law on Friday, March 27, 2020. The act includes several programs to assist eligible businesses with the support they need to sustain payroll and cover other expenses during this unprecedented time. The SBA website provides the most current and accurate information on each new government program. Program details are changing frequently, and we are working continuously to provide the most timely and helpful information available.
Economic Injury Disaster Loans and Loan Advance
Offers low interest loans to small businesses located in a declared disaster zone to help overcome the temporary loss of revenue they may be experiencing. Get the details.
SBA Debt Relief
Under the CARES Act, existing SBA borrowers whose loans are in good standing are relieved of any obligation to pay principal, interest and associated fees due after March 27, 2020 for a period of six months. If you have an SBA loan with CommunityAmerica, your banker will be contacting you with additional information. Additional details are available through this link.
SBA Express Bridge Loans
For current CommunityAmerica small business members who have an urgent need for cash while they wait for a decision and payment of an Economic Injury Disaster loan. Get the details.
Women's Business Center
Partially funded by the Small Business Administration, this organization provides support to women business owners in the Kansas City metro. Resources are available on their website, including accessing needed capital. They also provide free counseling by phone at 913.492.5922 and email at [email protected].
As your truly and forever local partner, we are here for you during this uncertain time. You can reach us at 913.905.7012.