The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be 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; and
• Employee and compensation levels are maintained.
Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
Loan payments will be deferred for 6 months.
When can I apply?
• Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.
• Other regulated lenders will be available to make these loans as soon as they are approved and enrolled in the program.
Who can apply? All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries (click HERE for additional detail).
For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries; or (2) that are franchises in the SBA’s Franchise Directory (click HERE to check); or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.
What do I need to apply? You will need to complete the application and submit the application with the required documentation by June 30, 2020.
What other documents will I need to include in my application? You will need to provide payroll documentation.
Do I need to first look for other funds before applying to this program? No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).
How long will this program last? Although the program is open until June 30, 2020, we encourage you to apply as quickly as you can because there is a funding cap and lenders need time to process your loan.
How many loans can I take out under this program? Only one.
What can I use these loans for? You should use the proceeds from these loans on your:
• Payroll costs, including benefits;
• Interest on mortgage obligations, incurred before February 15, 2020;
• Rent, under lease agreements in force before February 15, 2020; and
• Utilities, for which service began before February 15, 2020.
What counts as payroll costs? Payroll costs include:
• Salary, wages, commissions, or tips (capped at $100,000 on an annualized basis for each employee);
• Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
• State and local taxes assessed on compensation; and
• For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
How large can my loan be? Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
How much of my loan will be forgiven? You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
You will also owe money if you do not maintain your staff and payroll.
• Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
• Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
• Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
How can I request loan forgiveness? You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you used the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days.
What is my interest rate? 0.50% fixed rate.
When do I need to start paying interest on my loan? All payments are deferred for 6 months; however, interest will continue to accrue over this period.
When is my loan due? In 2 years.
Can I pay my loan earlier than 2 years? Yes. There are no prepayment penalties or fees.
Do I need to pledge any collateral for these loans? No. No collateral is required.
Do I need to personally guarantee this loan? No. There is no personal guarantee requirement. ***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.***
What do I need to certify? As part of your application, you need to certify in good faith that:
• Current economic uncertainty makes the loan necessary to support your ongoing operations.
• The funds will be used to retain workers and maintain payroll or to make mortgage, lease, and utility payments.
• You have not and will not receive another loan under this program.
• You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
• Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
• All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
• You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. And you also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.
NEW ALBANY, MISSISSIPPI: James R. Collins, Chief Executive Officer for BNA Bank, announced today that BNA Bank will take the necessary precautions, as outlined by the President of the United States and the CDC, to promote social distancing and help stop the spread of COVID-19.
For the safety and well-being of our customers and employees, effective Friday, March 20, 2020 the following operational changes will be in effect until further notice:
All BNA Bank lobbies will be open by appointment only until further notice. To make an appointment, customers may call 662-534-8171 (New Albany); 662-842-8005 or 662-842-4618 (Tupelo). Since Cash Advance Services on debit and credit cards are only offered in bank lobbies and not in the drive thru, Cash Advance Services on debit and credit cards are temporarily suspended. Customers should use ATM’s for their cash needs.
In addition, all BNA Bank drive thru’s will open at 8:30 a.m. each day instead of 9:00 a.m.
“BNA Bank is open,” remarked Collins. “This is certainly not a financial crisis, but a health crisis. We are still open for business. Customers must simply schedule an appointment to enter the bank at this time. We are implementing these operational changes only for the protection of our customers and employees.”
Use the #BNABankSalutes when you share any High School graduation related picture or senior picture on Twitter, Instagram or Facebook between May 22, 2020 and June 5, 2020 and the High School Senior could win $250 in New Albany Main Street Dollars or Tupelo Downtown Dollars! We will select a winner in New Albany/Union county and a winner in Tupelo/Lee County.
Who is eligible to win? Any Graduating High School Senior in Union or Lee County is eligible to win.
Who can participate? Any graduating high school senior in Union and Lee County, or any grandparent, parent, family member or friend can share a picture of the senior with the hashtag #BNABankSalutes to enter the high school senior.
How to enter? Any graduating high school senior in Union and Lee County, or any grandparent, parent, family member or friend can enter the contest by sharing a picture of the senior with the hashtag #BNABankSalutes on Instagram, Facebook and/or Twitter.
How many entries per senior? The number is limitless for each high school senior. However, each person sharing a photo with the hashtag #BNABankSalutes will only receive credit for one entry per social media account per senior.
Here is an example of how entries are counted for “John B Smith”, New Albany High School Graduating Senior:
John B Smith shares a picture from the graduation parade with the hashtag #BNABankSalutes on Instagram, Facebook and Twitter. 3 Entries
John B Smith’s mom shares a picture of John from the graduation parade with the hashtag #BNABankSalutes on Instagram, Facebook and Twitter. 3 More Entries for John B Smith.
John B Smith’s friend from out of town shares a picture of John from the graduation parade with the hashtag #BNABankSalutes on Instagram, Facebook and Twitter. 3 More Entries for John B Smith.
Now John B Smith has 9 entries!!
Recognizing that our most precious resource is our children, and realizing that the need to educate them to their fullest potential is of utmost importance not only to our community but to our state and nation as well, BNA Bank is proud to establish the BNA Bank “Money for Books” $500 award for deserving seniors in Lee County, Mississippi who plan to attend college in Mississippi.
MONEY FOR BOOKS AWARD APPLICATION
BNA Bank Scholarship for New Albany and Union County High School Seniors:
In New Albany and Union County, high school seniors who plan to attend college in Mississippi and are interested in applying for the BNA Bank Scholarship, should see their guidance counselor for an application. Applications are not distributed or accepted at any bank location.
BNA Bank Money for Books Award for Tupelo and Lee County High School Seniors:
In Tupelo and Lee County, all high school seniors who plan to attend college in Mississippi are eligible to enter. T o receive a complete list of rules and enter, high school seniors should bring a copy of their report card to one of our Tupelo locations: BNA Bank at 3041 McCullough Boulevard or BNA Bank at 2919 Tom Watson Drive (across from Cracker Barrell). No mail, e-mail or faxed entries will be accepted. The deadline this year is MARCH 27, 2020
MONEY FOR BOOKS AWARD APPLICATION