As a local credit union serving Northern Michigan since 1955, we at TBA Credit Union have come to appreciate all that our community has to offer. While we have all seen ups and downs, the impact to our entire community during the COVID-19 is unprecedented. TBA Credit Union will continue to serve the community and build trusted relationships as it has since before this pandemic, as it has during the pandemic and as we will after this pandemic has subsided. If your local small business needs help, TBA Credit Union’s Commercial Services team is here to help in any way we can. If you aren’t sure what your business needs, please reach out to our service center so we can get you in touch with one of our commercial service team members.
The CARES Act | Relief for businesses impacted by the Coronavirus
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was recently signed into law. The CARES Act includes a variety of resources for small businesses impacted by the Coronavirus. For an overview of the Act, visit the Guide to the CARES Act, offered by the Senate Committee on Small Business & Entrepreneurship.
The CARES Act is comprised of programs and products intended to aid small business during these difficult times. Several of the initiatives with the CARES Act are administered from the Small Business Administration (SBA) and are highlighted below.
Please keep in mind these programs are changing rapidly and will likely continue to be updated. We will be monitoring and updating our members as information becomes available. We highly encourage you to consult with your lawyers, CPAs and Financial Advisors to help you make the best financial decision for you.
The U.S. Small Business Administration (SBA) provides low-interest long-term loans to businesses of all sizes, private non-profit organizations, homeowners, and renters for economic disasters.
The Paycheck Protection Program (PPP) provides small businesses with funds to pay up to eight (8) weeks of payroll costs, including benefits. Funds may also be used to pay interest on mortgages, rent, and utilities. The PPP authorizes forgivable loans to small businesses to pay their employees during the COVID-19 crisis. Click the buttons below for more information about the PPP, provided by the US Department of Treasury.
- Eligibility: Eligibility for PPP is limited to small businesses with 500 or fewer employees—including non-profits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees are eligible in certain industries.
- Amount Available: Up to $10 million, or 2.5 times your total payroll expenses for the loan period.
- Rate & Terms: The initial rate is 1 percent, but it may rise. Loan terms will be the same for all borrowers and forgivable.
Economic Injury Disaster Loans (EIDL)
Economic Injury Disaster Loans (EIDL) provide small businesses with working capital loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Small businesses and non-profits harmed by COVID-19 are eligible to apply for an Economic Injury Disaster Loan emergency advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
- Eligibility: Small business owners in all U.S. states, Washington D.C., and territories. Economic Injury Disaster Loans are also available to residents in declared disaster areas. Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).
- Amount Available: Up to $2 million. An advance of up to $10,000 may be requested and is based upon business staffing levels. If approved, the advance is typically provided within three (3) days of application.
- Rate & Terms: 3.75 percent and capped at 4 percent per year. Up to a 30-year term and amortization, determined on a case-by-case basis.
Federal Home Loan Bank Elevate Grant program
Elevate is a small business grant program that assists the growth and development of small businesses, their workforce, and the communities where they are located. Your customers can use up to $12,500 for working capital and up to $25,000 for capital expenditures, workforce training, or a variety of other needs to get the boost that they need. This grant is designed to benefit our members and their customers by strengthening relationships they already have. That’s a win for everyone involved.