Coronavirus (COVID-19): Small Business Guidance and Loan Resources

As health and government officials work together to maintain the safety, security and health of the American people, small businesses are encouraged to do their part to keep employees, customers and themselves safe.

The recently passed stimulus bill offers assistance for businesses with less than 500 employees who have been hurt by the virus.  As a SBA lender, Austin Bank can assist you with the offered programs described below.  (Additional programs may be available.  Visit the SBA website for more details.)

 

Paycheck Protection Program:    

This program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and other certain expenses.  If all employees are kept on payroll for eight weeks, SBA will forgive the portion of the loans used for payroll, rent, mortgage interest or utilities.  Up to 100% of the loan is forgivable.

Eligibility Requirements -

  • Businesses - including eligible non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors described in the Small Business Act - with 500 or fewer employees may apply.
  • Businesses in certain industries may have more than 500 employees if they meet the SBA's size standards for those industries.

Potential Loan Amounts -

  • Loan amounts up to two and a half times your total average monthly payroll costs incurred during the year prior to loan date.  (i.e. Annual Payroll Costs/12 x 2.5 = Total Loan Amount)
  • Payroll costs include, but are not limited to, salaries; wages; commissions; tips paid; payment for vacation, family, medical or sick leave; group health care benefits; retirement benefits; and state or local taxes assessed on compensation of employees.
  • Employees compensated in excess of $100,000 annual salary are capped at $100,000 for consideration in payroll cost calculations.

 

** This is not a complete list of requirements or calculations.  **

Please check the Small Business Administration website for complete details and all information.
** All information is pending further approval and is subject to SBA guidelines.  **

 

List of Required Documentation to accompany PPP application.


For questions or help, call your personal banker or one of the following:

Dustin Beavers
936-552-0114

Larry Long
903-683-1089

Gabriel Mendoza
903-590-1505

Thomas Smith
903-843-2982

Tim Spraggins
903-295-4424

 


Additional Resources:

Coronaviruse Emergency Loans Small Business Guide and Checklist

Texas Bankers Association CARES Act Small Business Assistance