The BNMA is pleased to share the following information from Bank On Buffalo.
BankOnBuffalo is here to help small businesses should you find yourself in financial hardship. We've been an active participant in SBA lending for years and you can rely on us to be your resource should you need funding during these uncertain times.
The CARES Act has been signed into law by President Trump and you can find the highlights below, along with other helpful links. We encourage you to consider how these programs, along with BankOnBuffalo's assistance, can help your business.
The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $349 billion toward job retention and certain other expenses. This is a guaranteed, unsecured loan program that covers 2 times average monthly payroll and an additional 25% of payroll costs to be used for debt on interest, rent and utility payments for 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, with up to 500 employees, with some additional allowances.
- 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.
- 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.
- Allowable uses of loan funds include payroll costs; continuation of healthcare benefits during paid sick, medical or family leave; insurance premiums; mortgage interest payments, rent and utility payments; and interest on other existing debt obligations
- Loan forgiveness (in full or in part) and deferment options will be available
How to Apply
For full details, you can view the PPP Information Sheet for Borrowers and can find the application online to get started. Once completed, the application can be sent to your Bank representative who will work directly with the SBA. Additional information may be required.
Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
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.
- Loans up to $2 million
- 30 year terms with fixed interest rates of 3.75% and will include a one year payment deferral
- Funds can be used for working capital, payroll, A/P, insurance, utilities, and short-term debt
- Borrowers would apply directly on the SBA website Keeping Workers Paid & Employment Act
- SBA 7(a) Loans with 100% guarantees
- Up to $10 million in loans for SBA eligible borrowers and non-profits
$2 million in loans for the Economic Disaster (can’t do both) no loan forgiveness
- Process for loan forgiveness based on keeping people working
- Waived borrower and lender guarantee fees
- Coronavirus Emergency Loans - Small Business Guide and Checklist - U.S. Chamber of Commerce
- Keeping American Workers Paid Act - Section by Section - Small Business Investor Alliance
- Guidelines for Assisting Customers
To make an appointment, please reach out to your commercial lender, or the community office most convenient for you. You can find a listing of all offices and their contact information on our Locations & Hours page. Or contact BankOnBuffalo's SBA experts, David and Tom, for assistance on determining which option is best for you and your business: