SBA Emergency Loans
Small Business Paycheck Protection Program
The Paycheck Protection Program provides small businesses with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
All loan terms will be the same for everyone. Loan payments will be deferred for six months.
Funds are provided in the form of loans that will be fully forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made (at least 75% of the forgiven amount must have been used for payroll).
- No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
- Employee and compensation levels are maintained. Payroll costs are capped at $100,000 on an annualized basis for each employee.
Must Keep Employees on the Payroll—or Rehire Quickly
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
All Small Businesses Eligible
Small businesses with 500 or fewer employees—including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors—are eligible. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.
When to Apply
We encourage you to apply as quickly as you can because there is a funding cap. Small businesses and sole proprietorships can apply starting April 3, 2020. Independent contractors and self-employed individuals can apply starting April 10, 2020.
How to Apply
You can apply at any Pioneer Bank branch. Our bank lobbies are temporarily open only by appointment; please call ahead to make an appointment.
Additional information and full terms can be found on the SBA's Coronavirus (COVID-19): Small Business Guidance & Loan Resources page.