The newly enacted federal Coronavirus Aid, Relief, and Economic Security (CARES) Act provides a variety of additional emergency relief programs for businesses (including the Paycheck Protection Program) and consumers. 

For questions, contact Alex Morris, AVP - Advocacy,  517-977-6518, amorris@mibankers.com.



SBA Loan Resources

The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.


Loan Details and Forgiveness

The loan will be fully forgiven if the funds are 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.
This loan has a maturity of 2 years and an interest rate of 1%.

SBA is expected to release additional guidance for lenders regarding forgiveness and fee disbursement in the coming days.



Additional Program Information

Through April 16, 2020, the SBA has guaranteed 1,661,367 loans under the Paycheck Protection Program. For more information on loan activity, click here.


Other Assistance

  • Enhanced Debt Relief is also available in SBA’s other business loan programs to help small businesses overcome the challenges created by this health crisis.
  • For information on traditional SBA lending options, please click here.
  • SBA provides local assistance via 68 district offices and a nationwide network of resource partners. To find resources near you, please click here

PPP TOOLS FOR LENDERS AND BORROWERS

  • View the guidance on XML submissions.
  • Fed to Suspend Six Per Month Withdrawal Limit on Transfers from Savings Account
  • Latest PPP Guidance Does Not Require Recalculations. Read the guidance.
  • The OCC is encouraging banks providing loans under the Small Business Administration's (SBA) Paycheck Protection Program (PPP) to prudently document their implementation and lending decisions. Additionally, banks are encouraged to identify and track the PPP loans made to small business borrowers that have annual revenues of $1 million or less and are located in low- to moderate-income areas. Read the bulletin.

Program Overview

For Borrowers

For Lenders

Program Rules