Park Bank
 

Disaster Assistance for Small Businesses

As a result of the current Public Health Emergency caused by the Coronavirus (COVID-19), many small businesses are experiencing devastating financial losses. The federal, state and local governments are offering Disaster Assistance for those businesses that are affected. We have compiled some information and links to resources that may be helpful.

As always, feel free to contact your Park Bank office if you have any questions.

Small Business Administration’s Economic Injury Disaster Loan Program

The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Below are some of the basics of that program. For more information, visit: https://www.sba.gov/funding-programs/disaster-assistance

What is the criteria for a loan approval?

  • Credit History- Applicants must have a credit history acceptable to SBA.
  • Repayment– SBA must determine that the applicant business has the ability to repay the SBA loan.
  • Eligibility- The applicant business must be physically located in a declared county and suffered working capital losses due to the declared disaster, not due to a downturn in the economy or other reasons.

How much can I borrow?

  • Eligible entities may qualify for loans up to $2 million.
  • Small business owners are eligible to apply for an advance up to $10,000. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
  • The interest rates for this disaster are 3.75 percent for small businesses and 2.75 percent for nonprofit organizations with terms up to 30 years.
  • Eligibility for these working capital loans are based on the size (must be a small business) and type of business and its financial resources.
  • 12 month principal and interest payment deferral automatically build into the loan.
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How can I use the loan funds?

  • These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.
  • The loans are not intended to replace lost sales or profits or for expansion.

What are the collateral requirements?

  • Economic Injury Disaster Loans over $25,000 require collateral.
  • SBA takes real estate as collateral when it is available.
  • SBA will not decline a loan for lack of collateral, but requires borrowers to pledge what is available.

Where do I apply?

What do I need to apply?

  • Business Loan Application (SBA Form 5) completed and signed by business applicant.
  • IRS Form 4506-T completed and signed by Applicant business, each principal owning 20% or more of the applicant business, each general partner or managing member and, for any owner who has more than a 50% ownership in an affiliate business. (Affiliates include business parent, subsidiaries, and/or businesses with common ownership or management.
  • Complete copies, including all schedules, of the most recent Federal income tax returns for the applicant business; an explanation if not available. Note tax returns are not required if loan is under $500,000.
  • Personal Financial Statement (SBA Form 413) completed, signed and dated by the applicant (if a sole proprietorship), each principal owning 20% or more of the applicant business, each general partner or managing member.
  • Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used).
  • Additional Filing Requirements (SBA Form 1368) providing monthly sales.
  • Complete copies, including all schedules, of the most recent Federal income tax returns for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than a 50% ownership in the affiliate business. Affiliates include, but are not limited to, business parents, subsidiaries, and/or other businesses with common ownership or management.
  • If the most recent Federal income tax return has not been filed, a year-end profit and loss statement and balance sheet for that tax year is acceptable.
  • SBA will work with a new business that does not have the financial record requirements listed. Applicant will need to provide projections.
  • A current year-to-date profit and loss statement.
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Paycheck Protection Program Loans

We have created this easy comparison for you to see the differences between Economic Injury Disaster Loans and the Paycheck Protection Program loans.



To apply for the PPP loan, download this application and send to your Park Bank loan officer.

SBA Debt Relief Program

  • No required monthly payments on SBA term loans for 6-months beginning 3/27/20. SBA will make monthly payments on your behalf.
  • You can still make payments voluntarily in addition to the SBA’s monthly payment on your loan.
  • Loans with approved payment deferrals are still eligible for the SBA’s Debt Relief Program. The SBA’s payments will begin after deferment period.
  • You may voluntarily decide to end the approved period of deferment early to have the SBA’s monthly payments applied to your loan.

Wisconsin Economic Development Corporation (WEDC) – Small Business 20/20

(Note WEDC grants are only available a.) through Certified Development Financial Institutions, and b.) to current CDFI loan recipients. Park Bank is not a CDFI.)

Who is eligible?

  • Eligible applicants for Small Business 20/20 funds are Wisconsin Certified Development Financial Institutions (CDFI; list of Wisconsin CDFIs. Note that Park Bank is not an approved CDFI) with a minimum organizational loan portfolio of at least $4 million, or a collaborative of CDFIs with a combined organizational loan portfolio of at least $4 million.
  • Approved CDFIs and collaboratives will make program grants available to for-profit businesses that are current loan recipients in good standing as of 3/1/20 with the approved CDFI and/or its collaborating CDFIs. These businesses must have 20 or fewer full-time or part-time employees and greater than $0 but less than $2 million in annual revenues. Preference will be given to service and retail businesses.
  • Businesses may be granted two months of payroll and rent expenses, up to a maximum of $20,000. Funds must be used for rent and payroll expenses, including covering paid leave (sick, family and other leave related to COVID-19) during the duration of the funding period.
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How do I get a grant?

Approved CDFIs will make program grants available to for-profit businesses meeting the following criteria:

  • Current loan recipient in good standing as of 3/1/20 with the approved CDFI (and its collaborating CDFIs). Note that Park Bank is not an approved CDFI;
  • 20 or fewer PT/FT employees;
  • Greater than $0 but less than $2 million in annual revenues; and
  • Preference should be given to service and retail businesses.

How much can I get?

  • Two months of payroll and rent expenses up to a maximum of $20,000.

What I can use the grant for?

  • Funds must be used for rent and payroll expenses, including covering paid leave (including sick, family and other leave related to COVID-19) during the duration of the funding period.

Other Disaster Assistance Resources: