Village Bank CARES About Your Business

If your business has been negatively impacted by COVID-19 and has fewer than 500 employees, is a non-profit, a tribal business or a veterans' association, you may be eligible for a loan through the recently announced CARES (Coronavirus Aid, Relief, and Economic Security) Act. 

As an SBA Preferred Lender, Village Bank will offer SBA 7(a) loans through the CARES Act. The overall intent of the new stimulus package loans is to help small businesses across the country to not lay off workers due to COVID-19 disruptions, and to help to reinvigorate small businesses across the country. Hence, one of the most important provisions of the CARES for small businesses to be aware of is the Paycheck Protection Program, as it sets aside $350 billion in government-backed loans, and is modeled after the existing SBA 7(a) loan program.

Details that have been shared to date for the CARES Act small business Paycheck Protection Program loans are as follows:

• Businesses negatively impacted by COVID-19 with fewer than 500 employees, non-profit businesses, tribal businesses or veterans’ associations are eligible to apply.
• Self-employed, sole proprietors, freelance and gig economy workers are also eligible to apply.
• The 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 will be up to $10 million, determined by a formula, tied to payroll costs incurred by the business, i.e. 2.5X monthly eligible payroll expenses.
• The maximum loan amount under the Paycheck Protection Act is $10 million, with an interest rate no higher than 4%.
• Loan recipients may be eligible for loan forgiveness, and any loan amount that is not forgiven by June 30, 2020, will amortize over 10 years.
• The loan is unsecured with no personal guarantee required.
• Businesses can use multiple SBA programs as long as the use of proceeds is not duplicated.

Village Bank will continue to share details as they become available. In the meantime, if you are concerned about your business finances and would like to speak with a Village Bank lending expert, please complete a financial relief form, or email our SBA team directly. A lending expert will contact you as soon as possible to discuss your unique situation and the options available to you.
For more information about CARES Act eligibility requirements, view the U.S. Chamber of Commerce Small Business Guide, and for additional small business loan relief resources, visit our SBA Financing web page to learn about programs offered directly from the SBA and DEED.

Village Bank welcomes the opportunity to serve you through this challenging time. We'll get through this together.

Helpful Info about COVID-19