Tel: (267) 327- 4910

COVID-19-Small Business Assistance

With the recent legislation passed by the U.S. Congress in the form of the CARES Act, many Covenant Bank customers rightfully have lots of questions. Our experts have developed a helpful summary to better explain the key things you need to know and the relief options that may be available to you.

The introduction of the Paycheck Protection Program (PPP) and some lifted restrictions around Emergency Injury Disaster Loans have been introduced.  If you own a small business, it is particularly important to understand these programs. However, everyone can take an interest in understanding how this could affect our local economy or your own employer. Read on to learn more about these two programs.

SBA PPP LOAN FORGIVENESS 

Thank you for continuing to trust Covenant Bank to help you and your business during these trying times.

The SBA and U.S. Treasury Department recently released a joint statement following the enactment of the Paycheck Protection Program (PPP) Flexibility Act.

We are still waiting for the following information to be released before we can provide clear guidance on any action required to move forward:

  • Updated rules and guidance from the SBA
  • Modified borrower application form
  • Modified loan forgiveness application

 Your partnership is important to us and we remain committed to keeping you informed & prepared with regular, transparent communication as we learn more specifics about the PPP forgiveness process. You’ll be hearing from us again soon.

                                                 


SMALL BUSINESS PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of
payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and
utilities.

  • Funds are provided in the form of loans that will be fully forgiven when used for payroll costs,
    interest on mortgages, rent, and utilities (due to likely high subscription, 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 lenders
    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.

  • Small businesses with 500 or fewer employees—including nonprofits, veterans organizations,
    tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—
    are eligible. Businesses with more than 500 employees are eligible in certain industries.

        

Emergency Injury Disaster Loan

In response to the Coronavirus (COVID-19) pandemic, small business owners 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 help overcome the temporary loss of revenue small businesses 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. Economic Injury Disaster Loans are also available to residents in declared disaster areas.

Applications should be submitted directly to the SBA at SBA.gov  and you can find the application here.

Please reach out to your
Commercial Loan Officer directly
or use the contact form below.


                                                  A division of Citizens & Northern Bank

Main Office
60 N. Main Street | Doylestown PA 18901
(267) 327-4910
M-F 8:30am -5:00pm (Drive Thru Only due to COVID-19)
Saturday: 9am-12pm (Temporarily closed due to COVID-19)

Paoli Office
1500 E. Lancaster Ave | Suite 105  |  Paoli, PA 19301
(610) 981-6310
M-F 9:00am- 1:00pm
Also by Appointment

    Member FDIC

NMLS 1625396

© 2017 Covenant Bank |  All Rights Reserved

Contact Covenant Bank

This form is not a secure communication tool. Do not include private information, such as account numbers and social security numbers.