Covid Relief Programs
Yampa Valley Bank has been dedicated to helping Routt and Moffat County navigate the assistant programs included within the Coronavirus Aid, Relief and Economic Security ACT (CARES) Act. Click here to watch a story by CBS News Denver on how we processed over 400 loans worth $33 million in one week. Below is some general information that may be beneficial to you and your business regarding two loan programs that are currently being administered through the Small Business Administration (SBA).
- Economic Injury Disaster Loans (EIDL) are currently available through the SBA. These are emergency loans for the purpose of funding expenses that cannot be paid due to the impact of COVID-19. For businesses with a temporary loss of revenue, this loan may allow an advance of up to $10,000 within three days of application, and that advance may not need to be repaid. More information is available, and you may apply for a loan directly through the SBA website here.
- Payroll Protection Program (PPP) Loans, a component of the CARES Act, currently remain available through certified SBA lender banks including YVB. PPP Loans should assist businesses in covering various short-term costs including rent, interest expense, and most importantly payroll expenses so that small businesses may better retain their employees in the current environment. As a component of this loan, a borrower may receive forgiveness for an amount of the loan equal to 8 weeks of expenses as calculated by a formula. These loans will be guaranteed by the SBA, but the bank will take and process your application. For more information, visit the U.S. Department of Treasury info page.
After the initial funding for PPP loans was exhausted, additional funding was made available; however, this money is also being reserved quickly. It is not assumed that more funds will be made available after the second round of funds is exhausted. At this time, YVB continues taking PPP applications for its customers, including sole proprietorships, small businesses, independent contractors, self-employed workers, and non-profits. The SBA and Treasury Department continue the first-come first-served method for submission and funding of these loans.
When applying with YVB for a PPP Loan, the following will need to be included for processing to begin:
- A COMPLETED and SIGNED PPP Borrower Application form
- Any necessary Addenda
- Tax and/or other documentation fully supporting the loan amount for which you are applying, for example:
- Payroll tax reports (Forms 941, 940) for 2019 and first quarter of 2020
- Payroll reports for each pay period for 2019 and year to date 2020 showing all wages, including PTO, sick, etc.
- Proof of group health insurance premiums paid by the company for 2019 and year to date 2020 (monthly invoices)
- Proof of retirement plan contributions for 2019 and year to date 2020 (if applicable)
- For Sole Proprietors: 2019 or 2018 Tax Return Schedule C (Loan Amount = Net Profit / 12 x 2.5)
- For Independent Contractors: Form(s) 1099 Misc.
- For borrowers that do not have any such documentation, the borrower must provide other supporting documentation, such as bank records, sufficient to demonstrate the qualifying payroll amount.
- For all borrowers, information should be submitted in an organized fashion, with any summaries necessary to clearly document calculation of your loan amount. In addition to support information, YVB recommends submitting a spreadsheet such as one of the following provided by the AICPA to fully document the loan amount calculation:
- Notation of the breakdown between Payroll and other expenses requested (100% Payroll vs. 75% Payroll & 25% Other)
- Documentation concerning any additional expenses requested to be covered, such as rent, mortgage interest payments or utilities
- If not shown in submitted documents, the starting date of your business
- Your preferred/anticipated closing date for the loan
The following are links to information related to PPP Loans:
With the SBA still finalizing the procedures and forms that will be used with the PPP, here are a few tips:
- There is continuing concern that the funding for this Program will not last long. An SBA source recently provided a suggestion to business owners in need of emergency funding that you may – and perhaps should – apply for both programs. Small-business borrowers cannot get both an EIDL (Economic Injury Disaster Loan) and PPP loan at the same time. A borrower can apply for an EIDL loan now and the PPP loan when it becomes available. If a borrower accepts the EIDL loan, and subsequently qualifies for the PPP loan, the borrower can re-finance the EIDL loan into a PPP loan. Loans are limited to one per Taxpayer Identification Number.
- Reportedly, the application process for EIDL loans through the SBA website may go more smoothly at off-hours, such as late at night or early in the morning.
- For existing YVB loans, YVB is offering up to 3-month payment deferments OR up to 6-months of conversion of amortized loans to interest-only payments. If you have been detrimentally affected by COVID-19 related issues and need this assistance, please contact us to see how we can help.
- For EXISTING SBA loans, the CARES Act requires the SBA to make payments for borrowers, for a six month period and encourages banks to defer payments on these loans. YVB plans on assisting with YVB-related SBA loans as more details become available.
Other Resources Related to Covid-19
- For the latest updates on the Covid-19 pandemic and health guidelines, please visit the CDC's website.
- Scammers are taking advantage of fears and uncertainty surrounding Covid-19. Many emails and websites may promise vital information about the pandemic but are, in fact, scams that push malware or attempts to steal your passwords and personal information. Here are some tips to prevent this from happening to you:
- Don’t open attachments or click on links unless you are 100% sure where they came from. If you aren’t sure, call the person and then click.
- Be careful about people using calls/voicemail or text message to get your personal information. If someone is calling or texting for personal information or payment information, just say no.
- Look at your credit card statements daily or turn on notifications through your online banking. The amount of fraud is rising dramatically – turn on notifications for all purchases on your cards, set limits and check your statements daily. It’ll take a few minutes a day, but it can save your hours of hassle if they aren’t discovered until later.
- There are some “hot topics” besides coronavirus. The CARES Act/Economic Relief. Shelter-in-place. Toilet paper. Criminals will use these buzzwords to make you want to click.
- Click here for additional information from the FTC regarding coronavirus phishing and malware attempts.