Simmons Bank is with you all the way – especially when it comes to helping you and your business navigate this unprecedented time. Simmons is an SBA preferred lender, meaning we can act as a direct agent of the Small Business Administration (SBA) and approve loans in-house to quickly get you the funds you need.
The recently passed Coronavirus Aid, Relief and Economic Security (CARES) Act is designed to provide relief to individuals and businesses absorbing the impact of COVID-19 on our communities. A key component of the CARES Act is the Paycheck Protection Program (PPP), which provides 100% guaranteed loans to help businesses pay up to eight weeks of payroll costs to retain their workforce and assist with mortgage interest, rent and utilities.
Paycheck Protection Program (PPP) Overview
The PPP provides businesses with funds to pay up to eight weeks of payroll costs, including benefits. Funds can also be used to pay mortgage interest, rent and utilities.
The loan is an SBA 7(a) loan with the following terms:
- Loans can be for up to two months of your average monthly payroll costs from the last year, plus an additional 25% of that amount. This offer is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
- There are no loan fees.
- Loan has a maturity of two years and an interest rate of 1%. There are no prepayment penalties or fees.
- There are no payments on your loan for the first six months (interest will accrue over this period).
- No collateral or personal guarantees are required.
- Loan can be fully forgiven if funds are used for payroll costs, interest on mortgages, rent and utilities (at least 75% of the forgiven amount must have been used for payroll). Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels.