Waldo State Bank Supports Small Businesses

Eligibility: Businesses and nonprofit organizations with no more than 500 employees are eligible for the PPP through May 31, 2021, or until allocated funds are disbursed. Businesses may also apply for a second PPP loan if they have 300 or fewer employees and meet certain other eligibility criteria.

Loan Terms: PPP Loans have an interest rate of 1 percent. Loans issued on or after June 5, 2020, have a maturity date of 5 years. Interest accrues from the origination date. Loan recipeiens can defer principal and interest payments on their PPP loans until the date that the SBA compensates the lender for forgiven amounts, as long as the broower applies for forgiveness within 10 months of the experiation of the applicable period. 

Maximum Loan Amount: PPP loans were provided in amounts approximately equivalent to ten weeks of payroll costs. Loan amounts are determined based on 2.5 times the average monthly payroll costs, taking into consideration average wages paid during the applicable period (which will either be the one-year period prior to the loan or calendar year 2019, at your option), up to a limit of $10 million. 

Loan Forgiveness: A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.