We're here to support our local small businesses customers
Small businesses are the backbone of our economy. We're here to help guide you through this challenging time so you can continue to positively impact our local communities. If your business has been financially impacted by the COVID-19 pandemic we're here to support you with loan payment deferral and government funded assistance programs. Below is our summary of the program, but please take the time to read the full details directly from the SBA here.
Update as of April 27, 2020
Starting on April 27th the Small Business Administration will resume accepting applications for the new Paycheck Protection Program, (PPP). The PPP is a government funded loan designed to help businesses keep their workforce employed during the COVID-19 crisis. As your trusted financial partner, we are prepared to assist your business in accessing this SBA-guaranteed PPP loan directly from us. To be eligible for this program your business must be:
- Any business with less than 500 employees, including sole proprietorships, independent contractors, and self-employed persons, private non-profit organizations and veteran organizations may apply.
- Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
- Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
- Maturity of 2 years and an interest rate of 1%. Neither the government or Skowhegan Savings will charge small businesses any fees.
- No collateral or personal guarantees required
- Loan payments will be deferred for six months.
Your loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities. A minimum of 75% of the forgiven loan funds must have been used for payroll. Please note that after your loan has been funded, SBA requires you to submit additional documents in order to receive forgiveness on your loan. Forgiveness is contingent upon your business maintaining or quickly rehiring employees and maintaining salary levels. If your business' full-time headcount declines, or if salaries and wages decrease forgiveness amount will be reduced.
How to Apply
We are excited to be participating in this program so we can assist our customers. If your business has been financially impacted by the COVID-19 pandemic and you believe you qualify for PPP, fill out the forms below. If you have any questions or are unsure if you may be eligible, please reach out to your Commercial Lender
for additional assistance.
Additional Documents to Include
- 2019 Quarterly 941s Employer’s Quarterly Federal Tax Return and 941ME Employers Return of Maine Income Tax Withholding
- 2019 Quarterly ME UC-1 Unemployment Contributions Report
- Documentation to show proof of employees on payroll around February 15, 2020
- If applicable - documents demonstrating the health insurance premiums paid under a group health plan, (including owners), for the twelve months prior to application
- If applicable - documents showing all retirement plan funding that occurred in the previous 12 months, (I.E. work papers, schedules, remittances, to the retirement plan administrator)
Timing to Receive Funds
The funds for this program are limited to the amount that Congress most recently authorized on April 24th. Thousands of small businesses throughout the nation, who have been negatively impacted by COVID-19 will be applying for access to these funds. Please be patient with us as we work hard to process a high volume of applications. Once you provide us with your full application, we will review it for completeness and then submit to the SBA, and will require their approval before we can close the loan and provide funding. If your application is approved, funds will be automatically deposited into your business checking account. If your business does not have a checking account with us, please call to open one. We will keep you updated as much as possible throughout the process.