Sunrise Banks will begin accepting Paycheck Protection Program (PPP) loan applications on Monday, Jan. 11, as part of the Small Business Administration’s newest round of the program, which aims to help small businesses affected by the COVID-19 pandemic.
Sunrise is a Community Development Financial Institution (CDFI) and therefore able to start accepting PPP applications before larger financial institutions begin PPP lending.
The Small Business Administration is prioritizing CDFI banks in hopes that this will help smaller businesses receive funding. In March of 2020 Congress approved an initial $349 billion for the PPP. An additional $310 billion was passed for a second round of funding and now lenders are beginning the third round of the program which was passed as part of a $900 billion stimulus bill in late December.
“We’ve again been called to help our small businesses survive this pandemic and we feel an obligation to do so,” said Sunrise Banks CEO David Reiling. “This is our part in saving Main Street.”
In the first two rounds of the program, Sunrise Banks processed 1,800 PPP loans for $219.56 million. More than 80% of these loans were for $150,000 or less. Sunrise also made 184 PPP loans, for a total of $44,257,800, to nonprofits.
Applications Now Being Accepted
We know how important your small business is not only to you but to the economy. That’s why Sunrise Banks is leading the lending efforts for the Paycheck Protection Program. In total, the provision puts forward around $350 billion to be used to assist small businesses and allows you to keep your employees on the payroll.
We’ve been working hard to understand the different rules that have been released throughout this week. The good news is that additional information has just been released by the U.S Treasury: New interim rules came out along with a new version of the application, published on April 3, 2020.
To learn more about how to apply and the documentation needed, go here.
We know you may have questions as you read through the information provided by the U.S. Treasury and as you go through the application process. Please call us at:
1-844-SBA-PPP-9 (844-722-7779) or 651-927-1-SBA (651-927-1722).
Remember, we’re here for you.
Stay well. Be well.
Sunrise Banks is Here for You.
We know your small business is important to you and our communities.
That’s why Sunrise Banks is here to help.
Sunrise is excited to offer Small Business Administration 7(a) loans through the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act. As an SBA Preferred Lender, Sunrise is able to offer loans offered through the Paycheck Protection Program provision of the CARES Act.
What We Know So Far
In total, the provision puts forward around $350 billion to be used to assist small businesses and allows you to keep your employees on the payroll.
Here’s some general info on the Paycheck Protection Program:
- Small businesses, nonprofits, tribal businesses, and veterans’ associations that have less than 500 employees and have been negatively affected by the pandemic may be eligible for these loans.
- Loans through the program have a 1% interest rate and have a six month payment deferral.
- Loan recipients may be eligible for loan forgiveness
- Business must be operational as of Feb. 15, 2020 and had employees for whom it paid salaries and payroll taxes, or a paid independent contractor.
- Loan amounts up to $10 million
- Two-year full payout loan, and payments may be deferred for six months
- Unsecured and no personal guarantee
- Borrowers cannot apply for any other programs through the SBA for the same purpose
- Non Sunrise Banks customers are eligible as well as current customers.
These loans are intended to assist struggling small businesses across the country. The money can be used for payroll, rent, utility or mortgage expenses as well as interest costs on other debt obligations incurred before Feb. 15, 2020.
Right now, we’re waiting for additional guidance from the SBA before we start the process. Those interested in the program should start gathering documents that may be helpful during the loan process, including profit and loss statements, payroll information, tax returns, mortgage or rent statements, utility bill statements, etc.
As more details are available, we will be updating the website. In the meantime, sign up for more information and updates on the program.
Remember, we’re here for you.
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