CARES loan applications begin Friday

Posted on Apr 2, 2020 :: Insight on Business, Web Exclusive
Posted by of Insight Publications

The past week has been busy for Tim Schneider, CEO of Manitowoc-based Investors Community Bank.

Ever since the CARES Act became law last Friday, customers have been calling wanting more information about the special forgivable loans available through the Small Business Administration to help with losses sustained during the COVID-19 pandemic.

“Right now, we have more questions than answers, but we are receiving a lot of information from the Small Business Administration and sharing what we can,” Schneider says. “The SBA wants to expedite the process as much as possible since they know businesses are hurting.”

The loan application process opens Friday. Under the Payroll Protection Program, businesses can receive cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during the crisis.

“There’s been a lot of uncertainty, but we are ready to help our customers,” says Schneider, adding some Investors staff members are being redeployed to handle the influx of loans. “When the application process opens, the system will be inundated with requests.”

The program covers small businesses with 500 employees or fewer, including nonprofits, which is unique for an SBA program. The maximum loan is equal to 250 percent of an organization’s average monthly payroll costs for a selected eight-week period between Feb. 15 and June 30. Eligible businesses must show they were harmed by the pandemic.

Click here for information from the U.S. Chamber of Commerce on the CARES loan program.

To read more articles on how regional businesses and organizations are reacting to COVID-19 click here.