re: Small Business Resource Thread COVID-19

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The loan amount calculation will be as follows:

Payrolls costs including salary, wages, commission, or similar compensation; payment of cash tip or equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for dismissal or separation; payment for group health care benefits, including insurance premiums; payment of any retirement benefit; and payment of State or Local tax accessed on the compensation of employees. Employees whose salaries are greater than $100k will be limited to $100k for this calculation. Ex: Employee salary is $156k. The Salary cap is $100k so they would use $100k and the remaining $56k would be excluded.

Each type of business will provide and certify the payroll costs listed above for us to determine an average monthly costs which will be multiplied by 2.5x to determine the loan amount. The maximum loan amount will be the lesser of the calculation or $10 million.

There is a part of this Act that has “Loan Forgiveness”. The loan is NOT a grant but it does have a portion that can be forgiven. The borrower has to provide evidence that they paid eligible costs over an 8 week period following origination of which we will file a report to request SBA to pay us this amount which will be applied to their loan balance. “Eligible costs” include payroll costs, rent, mortgage interest payment, utilities (electricity, gas, water, transportation, telephone or internet access). They will have to provide evidence they paid this – it is not automatically granted.

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