Small Business Administration (SBA) Loans
President Trump signs into law the CARES Act
Highlights to this program:
- Up to $10MM in loan size, calculated by taking the average total monthly payments by the applicant for payroll, mortgage payments, rent payments, and payments on any other debt obligations incurred during the one-year period before the date on which the loan is made (except for applicants with seasonal employees, in which the payroll is based on the average total monthly payments for payroll from 3/1/19 through 6/30/19
- Loan proceeds are only for payroll support including medical leave, costs related to health benefits, employee salaries, mortgage payments, rents, utilities, and any other debt payments incurred before the covered period. (These relief loans are not eligible for business acquisitions, real estate purchases, or other typical 7a loan proceeds)
- 100% government-guarantees on these SBA relief loans made through 12/31/20
- Up to $1MM in Express loan size
- Available for currently eligible SBA borrowers AND not-for-profits. Borrower guarantee fees will be waived
- Provides a "process" (TBD) by which borrowers will be eligible for loan forgiveness in an amount equal to their payroll cost and costs related to debt obligations for the period between 3/1/20 and 6/30/20. The amount of forgiveness will be reduced proportionally by the number of employees laid off during this time, excluding employees making in excess of $100k in this "forgiveness" calculation
- Lenders must verify payroll costs
- $17 Billion for SBA payment of borrower principal, interest, and fees for a 6-month period beginning with the next payment due, for 7(a) including Community Advantage, 504, and Microloan borrowers. This is not a deferment but is actual debt forgiveness for the borrower. These SBA payments will be enacted by SBA automatically. There is a provision that states if a borrower is already on deferment, the CARES Act debt forgiveness payments will activate at the end of the deferment period. Loans made today, and within the next 6 months, will also have their principal, interest, and fees paid by SBA for 6 months starting with the first payment.
In preparation to apply for these loans we request you begin assembling the following information:
- 2019 Business tax returns OR 2019 profit and loss statement
- The last 4 quarters of payroll tax forms (941)
- Verification of the # of employees and total payroll incurred for 2019
For Immediate Loan Assistance
BankVista has 2 quick approaches to alleviate a potential cash crunch:
- Defer your Principal and Interest payments for 3 months
- Defer your Principal payments for 3 months (interest will still be due during this time)
For a more in-depth approach, refinance opportunities maybe available to reduce your monthly payment obligations, generate working capital, etc.
Contact BankVista to review your options:
- Business Team Directory
- Sartell 320-257-1600
- Mankato 507-387-2265
- Chaska 952-368-1950
Disaster Assistance Loans (Available Directly Through Government Application)
Note: If you take advantage of the current SBA disaster loan directly from the government, it will preclude you from obtaining one of the new programs that is coming soon through BankVista as a SBA Preferred Lender (Details Above).
Minnesota Small Businesses Now Eligible For SBA Economic Injury Disaster Loan Program
Thanks to a concerted effort by the state of Minnesota and the SBA to contain the economic impact of Coronavirus, the state's small businesses are now eligible for the SBA Economic Injury Disaster Loan Program and can apply for a loan on our website at SBA.gov/disaster.
- This program can provide low-interest loans of up to $2 million to small businesses and private non-profits.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills.
- The current interest rate is 3.75% for small businesses. The non-profit rate is 2.75%.
- These loans have long-term repayment options, up to a maximum of 30 years.
- Need help filling out the application? Access these step-by-step instructions
- Guidance for Small Businesses
Minnesota Employment And Economic Development
Small Business Emergency Loans
Following Executive Order 20-15, DEED has established a loan program to assist small businesses directly and adversely affected and whose industry is named in Executive Orders 20-04 and 20-08 following the COVID-19 pandemic. Small businesses are a vital part of Minnesota’s economy and this program will provide a source of working capital to help businesses sustain operations during this challenging time.
Businesses should apply directly through a certified lender. A list of lenders and application materials are available in the tabs. Nonprofits are not eligible for this program.
The program is still being developed and loans will be available soon. For further information visit MN Employment and Economic Development website.
- Government-assisted help for businesses that might otherwise have difficulty getting approved
- Special financing for qualifying businesses
- Competitive rates for a wide range of business needs:
- Commercial real estate purchase
- Business acquisition or expansion
- Equipment and inventory purchase
- Working capital
- And more
- Several lending options available
- Generally lower down payments and extended terms
- Additional considerations taken when deciding maturity*
- Easy, streamlined application process
- In-house processing for expediency and efficiency
- Personalized, attentive service
Saving You Time Right from the Start
The following information is usually required during the loan process:
- Personal & Business Federal Tax Returns – last 3 years with all supporting schedules (Required on all guarantors and/or all individuals who own 20% or more of the business)
- If an existing business – Year-to-Date Balance sheet and Profit & Loss statement are required. (Must be dated within 90 days of application).
- 2-Year Projection of earnings – (required if less than 3 years of historical statements are available)
- If any owner/borrower has a controlling interest in another business, 3 years of financial information must be submitted on each affiliate entity.
- A/R and A/P Aging Reports – at Banks discretion depending on use of proceeds and collateral offered
- For Franchise purchase include Uniform Franchise Offering Circular (UFOC)
- Purchase Agreement (applies only to acquisitions or real estate purchases)
- Complete SBA Application & Forms
BankVista is excited to announce we have received the 2019 Minnesota SBA Lender of the Year award. We’d like to thank our team for their hard work and dedication. From customer service to our expert lenders, we couldn’t do it without you!
We’d also like to thank the small businesses in our community for trusting us with your business banking needs. We appreciate the opportunity to serve you and our community together. Small businesses are the backbone of our community. That's why we work to offer them financing they need to thrive.
As a Preferred SBA Lender, at BankVista we work with the U.S. Small Business Administration offering these special loan programs. If your business can't qualify for traditional lending, talk to a BankVista commercial lender who can go over additional options with you.
Bank Smart. Bank Local. BankVista.