sba lending
for small businesses

we're here to help

As the coronavirus pandemic continues to impact our lives both professionally and personally, we want you to be assured that we’re in this together. We are committed to providing you expert guidance and assistance to help make the best decisions for your financial well-being. With the COVID-19 Economic Injury Disaster Loan and Coronavirus Aid, Relief and Economic Security Act (CARES Act) passed providing government‐sponsored financial support to the businesses in our communities, our teams have been working hard to help business customers through the process. Please read below to learn about the programs offered as well as if your business is eligible and the steps needed to apply.

The U.S. Small Business Administration (SBA) is continuing to make updates all the time. Please use the SBA website as your latest resource.

SBA.GOV

COVID-19 Economic Injury Disaster Loan

This assistance program is an SBA low-interest federal disaster loan for working capital to small businesses suffering substantial economic injury as a result of COVID-19.

COVID-19 Economic injury Disaster Loan details

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 novel coronavirus (COVID-19). Governors Ricketts, Reynolds and Abbott issued the disaster declarations in March 2020, triggering the release of COVID-19 Economic Injury Disaster Loan funding.¹The SBA now has a number of economic relief options, and your banker can help guide you to a solution that best fits your needs.

New SBA Loans for Small Business and Private Non-Profits

SBA is making loans available to small businesses and private, non-profit organizations in designated areas to help alleviate economic injury caused by COVID-19. For information and the application for Economic Injury Disaster Loan assistance visit their website.

Covid19Relief.SBA.gov

Terms Provided by the SBA

While sometimes special lending programs may seem cumbersome and time-consuming, such programs may be worthwhile for small business owners and private, non-profits to consider. The application and funding may take more time than a traditional loan, but the terms were designed to provide long-term aid to businesses during unusual circumstances.

SBA table

SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
These loans may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disaster’s impact.
The interest rate is 3.75% for small businesses.
The interest rate is 2.75% for non-profits.
SBA offers loans with long-term repayments at up to a 30-year amortization, based on each borrower’s ability to repay.

Q&A for SBA Disaster Relief Funding

Security National Bank has compiled information from the U.S. Small Business Administration (SBA) regarding low-interest federal disaster loans¹ the SBA is offering designated areas, including Nebraska, Texas and Iowa. Here’s what you need to know:

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.

What's Next?

While Security National Bank can help advise you on the application process for this disaster funding program, we recommend reviewing information on sba.gov/funding-programs/disaster-assistance or contacting the SBA disaster assistance customer service center. The entity seeking funds through this program would apply directly with the SBA.

CALL 1-800-659-2955 (TTY: 1-800-877-8339 for Accessibility)
E-MAIL disastercustomerservice@sba.gov
VISIT sba.gov/funding-programs/disaster-assistance

Contact Us

Contact a Security National Bank Team Member
(402) 344-7300 or (844) SNB-1964

¹Coronavirus Preparedness and Response Supplemental Appropriations Act, an Economic Injury Disaster Loan declaration, signed March 6, 2020, by President Trump.

For Informational Purposes Only. Source: sba.gov/funding-programs/disaster-assistance and covid19relief.sba.gov/#/.

Paycheck Protection Program (PPP)

This is an SBA loan that helps businesses keep their workforce employed during the COVID-19 crisis. The SBA deadline for application filing is now closed.

Paycheck Protection Program (PPP) details

The Paycheck Protection Program is part of The CARES Act¹ that prioritizes Americans employed by small businesses by authorizing special funding toward job retention and certain other expenses. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, may be eligible if they also meet program size standards. Security National Bank continues to receive implementation guidance from the SBA as the program becomes available to our customers. We will keep customers up to date as we receive new information.

Under this program:

Loans can be up to 2.5 times the borrower’s average monthly payroll costs, not to exceed $10 million. Loan payments will be deferred for ten months.
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.

Loan Details and Forgiveness

The loan may be forgiven, fully or in part, if the funds are used for payroll costs, interest on mortgages, rent and utilities. At least 60% of the funds must be used for payroll. Any loan payments will also be deferred for 10 months. No collateral or personal guarantees are required. Neither the government nor Security National Bank will charge small businesses any fees.

Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. Forgiveness may be reduced if full-time headcount declines. Since this program began, guidelines and stipulations have evolved to help better meet business circumstances. Official SBA guidelines are found here and you may wish to consult your accountant or attorney for additional assistance.

Depending on when your PPP loan originated, the maturity date of any loan amount not forgiven may be two years or five years. The interest rate on the outstanding loan balance is 1%.

Contact your banker to apply. Here's a sample application from the SBA website that your banker will assist you with.

Paycheck Protection Program SAMPLE Application

To apply for loan forgiveness use the following applications:

1. EZ three-page version of the PPP loan forgiveness application. Available for use by those borrowers who meet one of the following criteria:

a. Are self-employed and have no employees, OR
b. Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees, OR
c. Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.

Download Form 3508EZ Download the instructions for Form 3508EZ

2. Updated version of the full loan forgiveness application. This updated application requires fewer calculations and less documentation than the previous version for eligible borrowers.

Download the revised Form 3508 Download the instructions for Form 3508

Q&A for Paycheck Protection Plan (PPP)

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 ten months.

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 60% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for ten 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 may be reduced if full-time headcount declines, or if salaries and wages decrease. Since this program began, guidelines and stipulations have evolved to help better meet business circumstances. Official SBA guidelines are found here and you may wish to consult your accountant or attorney for additional assistance.

Depending on when your PPP loan originated, the maturity date of any loan amount not forgiven may be two years or five years. The interest rate on the outstanding loan balance is 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

What's Next?

We recommend reviewing information on sba.gov/funding-programs/loans/paycheck-protection-program-ppp, then contacting your banker if you are interested in applying. Here's a sample application from the SBA website (Paycheck Protection Program Application). We recommend that you contact your tax advisor, legal counsel, and/or bookkeeping service to assist your business if necessary.

For those who were approved for the PPP loan and are looking at forgiveness:
At the end of your loan forgiveness period, or if you have spent the funds and met all criteria, contact your banker directly as he or she will provide instructions on how to send your confidential information to us in a secure manner. The SBA has not yet opened the portal for lenders to apply for forgiveness at this time. When this occurs, we will begin the process with our customers.

Contact Us

Contact a Security National Bank Team Member
(402) 344-7300 or (844) SNB-1964

¹Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed March 27, 2020, by President Trump.

For Informational Purposes Only. Source: sba.gov/funding-programs/loans/paycheck-protection-program-ppp and sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0

Contact Information

U.S. Small Business Association (SBA)

CALL: (800) 659-2955 (TTY: (800) 877-8339 for Accessibility)
E-MAIL: disastercustomerservice@sba.gov
VISIT: sba.gov

Security National Bank

Contact a Security National Bank Team Member

CALL: (402) 344-7300 or (844) SNB-1964

or find your business banker's information directly here.

Source: sba.gov

sba lending for small businesses

we're here to help

COVID-19 Economic Injury Disaster Loan

COVID-19 Economic injury Disaster Loan details

New SBA Loans for Small Business and Private Non-Profits

Terms Provided by the SBA

Q&A for SBA Disaster Relief Funding

What's Next?

Contact Us

Paycheck Protection Program (PPP)

Paycheck Protection Program (PPP) details

Loan Details and Forgiveness

Q&A for Paycheck Protection Plan (PPP)

What's Next?

Contact Us

Contact Information

sba lending
for small businesses