PageContent1 Dear Customer: The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted on March 27, 2020 to provide financial relief to consumers and businesses in response to the economic distress caused by the Coronavirus (COVID-19). The guidelines and loan application just became available and consist of a $350 billion provision for small businesses through federally backed loans under a modified and expanded SBA 7(a) loan guaranty program called the Paycheck Protection Program. Congress has designed the program to make funds available to qualifying businesses quickly through approved banks. As an SBA approved bank, we have been reviewing all materials diligently to ensure that we can expedite your loan in a timely and simple process. Paycheck Protection Program Benefits This program provides economic relief to small and medium size businesses, so they can continue covering main operational expenses and maintain their obligations with their employees. These loans don’t require personal guarantee or collateral. Also, the portion of the loan used for payroll expenses, rent, health benefits, insurance premiums, utilities and interest payments incurred in the following eight (8) weeks since the loan was disbursed, could be partially or fully forgiven. If there is a residual balance after this grant, the residual amount will be amortized in a 2-year term with an interest of .5%. Who Would be Eligible? All businesses with 500 employees or less or that comply with the industry requirements established by the Small Business Administration (SBA). For more information, please visit https://www.sba.gov/federal-contracting/contracting-guide/size-standards Businesses in the Hotel or Food industry (NAICS 72) with 500 employees or less per physical location. Individuals who operate as a sole proprietor or independent contractors that generate $100,000 or less. A 501(c)(19) Veterans Organization that meets the SBA size Standard. 501(c)(3) non-profit organizations. How to Calculate the Loan Amount 2.5 times the monthly average of payroll expenses during the previous year before applying to the loan (starting April 1st, 2019 thru March 31st, 2020) or $10 million, whichever is less. Some exclusions may apply. Please refer to the attached presentation for reference. As part of this communication, we are including the following informational links to facilitate the applying process: Loan Application Form SBA Borrowers Guide Frequently Asked Questions To start your application process, send your completed application to firstname.lastname@example.org, copying your commercial banker and including the following documents: Organizational documents of the business. Payroll Tax reports (forms 941 for the past four quarters and 1099s) for the previous 12 months. Detailed report of payroll expenses for the last 12 months since April 1st, 2019 including details for salaries, commissions, benefits (ie. Medical plan, Retirement plan and any other benefit provided to employees). Remember that there are certain expenses that you will be able to include but there are others that will have to be excluded from the payroll expense calculation. Please do not include any personal sensitive individual employee information. A list of all entities owned by any 20% or more owner of the business. If you have already provided these documents to FirstBank during the origination or renewal process of your actual loan, you will not need to provide them again. If there are any other documents required from the SBA, we will inform you. FirstBank will start processing these applications as soon as the SBA is ready to receive them. Our goal is to assist as many businesses in our community as possible. We will be offering priority service to existing business customers of FirstBank For more information, please contact your FirstBank Representative at 305-577-6000. We will get through this TOGETHER!