sba lending 
for small businesses

How do I apply for an SBA Disaster Loan?

Apply for an SBA Disaster loan through the SBA website (Information and Application). 

What documents are needed to apply?

The documents needed are listed below. These are in the application on the SBA Disaster website and you will upload to the SBA Disaster relief website when making the application.

• Completed Application of SBA Form 5
• Tax Information Authorization (IRS Form 4506T) This form needs to be filled out for the applicant (business), principal owners/ guarantors and any affiliates
• Complete copies of the most recent Federal income tax returns for the applicant business (currently would include 2017, 2018 and 2019 if filed)
• Personal Financial Statement (SBA Form 413)
• Schedule of Liabilities on SBA Form 2202

Will I be working with the bank on this loan?

While the loan will not be funded through the bank, your banker can be a key resource in this process. If any questions arise through the application process, please reach out to your banker for help. If we do not know the answer, we will work to get the answer for you.

What are the terms of the SBA Disaster loan?

Disaster loans are available up to $2 million for up to six (6) months of operating expenses with a fixed interest rate of 3.75% for businesses and 2.75% for private, non-profit organizations, with the amortization of up to 30 years, based on each borrower’s ability to repay. The first year (12 months) will have no principal payments and no interest accruing during this time.

What can the funds be used for?

The SBA has given you the ability to ask for six (6) months’ worth of operating expense. This includes, but is not limited to, payroll, loan payments, rent, insurance, etc. While the way these loans will be disbursed is still under discussion, these funds would allow you to continue making any necessary obligations to any creditors.

How do I know if I qualify?

Two quick barometers to check if you qualify:

• Do you have less than 500 employees?
• Does this site (sba.gov/size-standards/) say you’re eligible?

Yes? You qualify!

No? Contact your banker and they can get an answer or more information for you

What can I do about my existing loans?

Reach out to your banker and see what can be done regarding payment deferments or other avenues to assist in the interim. Please know that the disaster loan can be used to make loan payments on your current obligations.

Who can apply for the Paycheck Protection Program?

This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.

Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards (sba.gov/size-standards) for those industries.

Small businesses in the hospitality and food industry with more than one location could also be eligible at the store and location level if the store employs less than 500 workers. This means each store location could be eligible.

How do I apply for the Paycheck Protection Program?

Contact your banker to apply. Here's a sample application from the SBA website (Paycheck Protection Program Application) that your banker will assist you with. 

Loan application processing will begin as soon as April 3, 2020.

What documents are needed to apply?

We suggest you prepare the following information to speed up the process. 

• Organizational documentation on the borrowing entity including but not limited to:
  • Certificate of Formation
  • SS-4
  • Operating Agreement
• Personal information on any owners/signers on the business which would include:
  • Social Security Number
  • Copy of driver’s license
  • Contact information (phone number and email)
• 2019 IRS Quarterly 940, 941, or 944 payroll tax reports
• Payroll reports for a twelve-month period (ending on your most recent payroll date), which will show the following information:
  • Gross Wages for each employee, including officer(s) if paid W-2 wages
  • Paid time off for each employee
  • Vacation pay for each employee
  • Family Medical Leave pay for each employee\
  • State and local taxes assessed on an employee’s compensation
• Business financials for the borrower including:
  • 2018 business tax return
  • 2019 financials to include profit and loss statement and balance sheet
  • Interim financial statement for 2020 to include profit and loss statement and balance sheet
• 1099s for independent contractors for 2019
• Profit/Loss statements for 2019 and for 2020 for self-employed individuals.
• Documentation showing total of all health insurance premiums paid by the company owner(s) under a group health plan that (includes all employees and the company owners)
• Document the sum of all retirement plan funding that was paid by the company owner(s) (do not include funding that came from employees out of their paycheck deferrals).
  
  • Include all employees and the company owners
  • Include 401K plans, Simple IRA, SEP IRA’s

What are the terms of the PPP loan?

Eligible recipients may qualify for a loan up to $10 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount.
Loan payments will be deferred for six months.

The loan will be fully forgiven if the 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). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor Security National Bank will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination. Please refer to the SBA website for details on forgiveness here.

This loan has a maturity of 2 years and an interest rate of 1%.

What can the funds be used for?

The money can be used for payroll, rent, mortgage interest, or utilities.

How do I know if I qualify?

Two quick barometers to check if you qualify:

• Do you have less than 500 employees?
• Does this site (sba.gov/size-standards/) say you’re eligible?

Yes? You qualify!

No? Contact your banker and they can get an answer or more information for you