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
2021 Paycheck Protection Programs (PPP) (CLOSED)
Recent federal legislation provides the opportunity for businesses and other eligible entities to apply for "First Draw" Paycheck Protection Program (PPP) loans and “Second Draw” PPP loans. The most important feature of a PPP loan – these loans can be forgiven, converting to grants if guidelines are followed.
PPP General Fund Exhausted: The Paycheck Protection Program’s general fund was reportedly exhausted Tuesday, May 4, 2021 ahead of the program’s May 31 authorization, and Security National Bank is no longer able to accept applications.
The Small Business Administration (SBA) is the best resource for its programs and more information can be found at www.SBA.gov. Additionally, our team is dedicated to serving businesses and helping find solutions that best fit their needs. Please do not hesitate to let us know how we can help you.
 First Draw Paycheck Protection Program (PPP) Details (CLOSED)
The following program overview can be found on the SBA.gov website. We have provided it below for your convenience. Use SBA.gov as your first resource should program details change.
First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Full Forgiveness Terms
First Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
• Employee and compensation levels are maintained;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.
Who Can Apply
Eligible small entities, that together with their affiliates (if applicable), have 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—can apply. Entities with more than 500 employees in certain industries that meet SBA’s alternative size standard or SBA’s size standards for those particular industries can also apply.1
Reapplying and Loan Increases
Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may: (1) reapply for a First Draw PPP Loan if they previously returned some or all of their First Draw PPP Loan funds, or (2) under certain circumstances, request to modify their First Draw PPP Loan amount if they previously did not accept the full amount for which they are eligible.
When and How to Apply
Borrowers can apply for a First Draw PPP Loan until May 31, 2021. All new First Draw PPP Loans will have the same terms regardless of lender or borrower.
Security National Bank has invested in a convenient online portal to apply where you can safely provide the required information and upload supporting documents. Our team is dedicated to providing you with a secure and streamlined process to apply.
Apply Here
Contact Us
Call a banker to learn how to submit your application using our convenient online application portal.
(402) 344-7300 or (844) SNB-1964 or find your business banker's information directly here.
1 Also eligible to apply for First Draw PPP Loans are businesses with a NAICS Code that begins with 72 (Accommodation and Food Services sector) or eligible news organizations with no more than 500 employees per physical location, as well as housing cooperatives, 501(c)(6) organizations, or destination marketing organizations with no more than 300 employees.
|
Second Draw Paycheck Protection Program (PPP) Details (CLOSED)
The following program overview can be found on the SBA.gov website. We have provided it below for your convenience. Use SBA.gov as your first resource should program details change.
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Full Forgiveness Terms
Second Draw PPP Loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:
• Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan;
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60 percent of the proceeds are spent on payroll costs.
Targeted Eligibility
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• Has no more than 300 employees per physical location; and
• Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
Maximum Loan Amount and Increased Assistance for Accommodation and Food Services Businesses
For most borrowers, the maximum loan amount of a Second Draw PPP Loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million. For borrowers in the Accommodation and Food Services sector (click HERE for NAICS 72 to confirm), the maximum loan amount for a Second Draw PPP Loan is 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
When and How to Apply
Borrowers can apply for a Second Draw PPP Loan until May 31, 2021. All Second Draw PPP Loans will have the same terms regardless of lender or borrower.
Security National Bank has invested in a convenient online portal to apply where you can safely provide the required information and upload supporting documents. Our team is dedicated to providing you with a secure and streamlined process to apply.
Apply Here
Contact Us
Call a banker to learn how to submit your application using our convenient online application portal.
(402) 344-7300 or (844) SNB-1964 or find your business banker's information directly here.
|
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.
Program 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). The SBA now has a number of economic relief options, and your banker can help guide you to a solution that best fits your needs.
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’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:
|
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:
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/#/.
|
|