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DeWitt: 563-659-3211
Wilton: 563-732-3211

Notice of Assistance to Small Businesses Affected by COVID-19

[email protected]

On Friday, March 27, the President signed into law the CARES Act.  This law contains many provisions to provide assistance to workers, families, businesses, and the health care industry who have been affected by the COVID-19 pandemic.

A provision designed to provide direct assistance to small businesses is the “Paycheck Protection Program”.  This program provides $349 billion for expedited individual loans through approved lenders that are guaranteed 100 percent by the U.S. government through the Small Business Administration (SBA).  The loan proceeds can be used to cover payroll costs, such as employee salaries, paid sick or medical leave, insurance premiums, and mortgage, rent, and utility payments incurred from February 15, 2020, through June 30, 2020.

Loan Terms:  The maximum amount of a loan equals 2.5 months of regular payroll expenses or net earnings from self-employment (subject to a cap of $100,000 of annual salary per employee).  Borrower and lender fees are waived.  Collateral and personal guarantee requirements are waived.  The maximum interest rate is one percent and loan maturity is 2 years.  No prepayment fees will be charged.  Loan payments are deferred for 6 months.

Loan Forgiveness:  Borrowers are eligible for loan forgiveness equal to the amount spent by the borrower during an eight week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to February 15, 2020, payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020.  The amount of loan forgiveness will be reduced if the borrower does not maintain its level of employment that existed prior to the pandemic.  

Eligibility:  Generally, any business with fewer than 500 employees is eligible if it was operational on February 15, 2020, and had employees for whom it paid salaries and payroll taxes.  Nonprofits and churches also are eligible.
Information Needed:  To support an application, you will need to submit payroll records, payroll tax reports, and income tax returns for 2019.  If your business is organized as an entity (corporation or LLC), we may also need copies of your organizing documents such as articles of incorporation, bylaws, and operating agreements.

Application Process:  DeWitt Bank & Trust Co. is authorized to accept and approve applications for this program and is participating fully.  We have mobilized staff and are engaging our lenders, bankers, and tax and accounting professionals in this very important endeavor.  You can apply by emailing us at [email protected].  You do not need to be a current customer to apply.  Monitor our Facebook and website for future announcements or email us at [email protected] for additional information.