The Coronavirus Aid, Relief, and Economic Security Act (C.A.R.E.S Act) provided $350 Billion to support small businesses and keep workers employed during the pandemic economic downturn. The Paycheck Protection Program provides eligible businesses impacted by COVID-19 to borrow up to $10MM in forgiveable loan and to cover payroll, interest, leases and utility expenses. American Commercial Bank and Trust and First National Bank of Ottawa will be providing these loans through partnership with the Small Business Administration.
Loan Certification Requirements:
*Borrowers may apply for both PPP loan and other SBA assistance including EDILs, but funds CANNOT be used for same purposes.
How much Can Businesses Borrow?
Loan amounts can be 2.5x the Borrower's monthly included payroll costs
*For non-seasonal employees: 2.5x the average monthly payroll over the last year
*For seasonal employees: 2.5x the average monthly payroll for 12-week period starting either February 15, 2019 or March 1st, 2019
Loans are eligible to be forgiven up to the pricipal balance on the loan
Forgiveness amount is a calculated by the sum of the following items over the 8 week period following the loan origination:
Forgiveness amount CAN be REDUCED:
*Reduction in wages from February 15, 2020 restored by June 30, 2020 will not reduct Loan Forgiveness amount
*IF entire loan is forgiven-Borrower is NOT responsible for interest accured during period from loan origination to forgiveness
While we wait for the SBA to provide a detailed application process and application checklist, American Commercial Bank and Trust has provide the below list of information businesses can begin to compile. Our understanding is the following information will be required:
We at American Commercial Bank and Trust/First National Bank of Ottawa are here to help!
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Please note that, in view of the high demand for loans through the Paycheck Protection Program (PPP) and the volume of existing and anticipated applications, and in view of the rules adopted by the Small Business Administration (SBA), The First National Bank of Ottawa makes no promise nor commitment that a loan will be made to your business or that your application will be submitted to the SBA before available PPP funds are depleted. The First National Bank of Ottawa will process applications consistent with criteria established by the SBA and The First National Bank of Ottawa, which may change at any time, without notice. If you are not a current borrower of The First National Bank of Ottawa, it may be most efficient for you to apply for a PPP loan through your existing lender.
First Ottawa Bancshares, Inc. is the parent company of The First National Bank of Ottawa and its Branches: The First National Bank of Ottawa – Northfield, The First National Bank of Ottawa – Plaza,The First National Bank of Ottawa – South, Morris National Bank & Trust, Streator National Bank, Yorkville National Bank & Trust, and American Commercial Bank & Trust.
First Ottawa Financial Services is a division of The First National Bank of Ottawa