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COVID-19 Business Resource Center

Pioneer is here to help

The rapid spread of COVID-19 throughout the United States, and especially New York, has caused a dramatic shift in the way we do business. As a business owner, you may be struggling to keep up with the rapid pace of news stories and developments while also shifting your business strategy to cope with this outbreak for an unforeseeable future.

Pioneer understands your challenges, and is here to help. We've compiled important information for businesses pertaining to COVID-19 and how to navigate the uncertain economy. It is our hope that you find sensible guidance, create a clear path to weathering this crisis, and build a foundation for a prosperous future.

Our team is here to assist you should you need additional information. Please reach out to your Pioneer Relationship Manager or give our Customer Care Team a call at 518.730.3000 to be directed to our business banking team.

SBA Loan Information

Due to the impact of COVID-19, the Small Business Administration (SBA) has authorized two new programs to assist businesses: Economic Injury Disaster Loans and the Payment Protection Program. Information related to both programs is available below.

Please note: This is a rapidly developing situation, and this information is subject to change. We will update this page regularly to provide you with the most current information available, and will note any such changes within the text. Please be sure to check this page prior to submitting your loan application to ensure you have completed your application based on the latest information.

As always, our team is available to discuss your needs, provide assistance in applying for these programs, and help you through these uncertain times. Please do not hesitate to reach out to your Relationship Manager or sbaloans@pioneerbanking.com should you have any questions.

We appreciate your business and are here to support you.

Remember to ask your accountant about the Employee Retention Tax Credit and Community Development Block Grants in addition to the two programs above.

Economic Injury Disaster Loans (EIDL)

Assists qualified businesses affected by COVID-19 to meet working capital needs or normal business operating expenses through the recovery period.

  • Amount: Up to $2 million
  • Term: Up to 30 years with 3.75% interest for qualified businesses, and 2.75% for non-profit organizations
  • Application Process: Customer applies directly through the SBA at this link

Note: The CARE Act created “EIDL Emergency Grants” that provide for an eligible entity that applied for an EIDL loan can request an advance “emergency grant”, not to exceed $10,000 within 3 days after SBA receives the application. If the grant is used for eligible expenses including, but not limited to, paid sick leave, maintaining payroll, mortgage or rent payment, supply chain costs, etc., then no payback is necessary.

Paycheck Protection Program (PPP) Under SBA 7(A)

Pioneer continues to accept new appplications for the Paycheck Protection Program. Please read the information below, and contact your Pioneer Bank Representative or sbaloans@pioneerbanking.com if you are interested in applying for the program. A member of our team will contct you to discuss your eligibility and help you through the process.

PPP Loan Information

  • Amount: The lesser of $10 million and 2.5 times the average monthly payroll costs for the one-year period before the loan is made for the applicable borrower.
  • Maximum for SBA Express loans: up to $1 million through December 31, 2020, and up to $350,000 after December 31, 2020
  • Term: As of April 2, 2020, the US Treasury has set the rate at 1.00% and the term at 2 years. The CARES Act allows for complete payment deferment relief of these loans for 6 months to 1 year.
  • Application Process: The business applies through Pioneer Bank, which submits the application to the SBA. The loan requires no collateral and no personal guarantees.

The Paycheck Protection Act allows small businesses, like yours, to apply directly with a bank for a loan to meet the payroll needs of your employees, even if they are not working due to the orders by State, City, and Local governments restricting patronage and work-site attendance. By rule, every small business is considered impacted by these circumstances.

To qualify for the loan, your small business must employ less than 500 workers. The maximum loan amount available is the lesser of $10 million or 2.5 times your average monthly payroll. This calculation caps the salary of any employees who make a salary more than $100,000 per year.

Once you apply and receive the loan, you can qualify for forgiveness in an amount equal to the loan, provided that you verify loan proceeds were spent on payroll, rent, utilities, and mortgage interest equal to or greater than the amount you borrowed. This forgiveness is subject to discounts depending on your payroll amounts paid during the 8-week period after the loan compared to your previous year’s average; this applies to both total employee headcount and average compensation per employee (again, employees that are compensated more than $100,000 on an annualized basis, are calculated differently). Any funds not forgiven will need to be repaid within two years.

For more information on this program, visit the US Treasury website.


Loan Forgiveness Information

*UPDATED* 5/22/20

Please click here to view information related to PPP loan forgiveness.

As always, Pioneer Bank recommends that borrowers include the advice of legal and tax professionals in support of their borrowing strategy.  This is especially important due to the tax treatment of PPP proceeds and wage expenses.

 

Additional Resources

Listed below are additional resources that may provide information and guidance to help you navigate this situation. We will update these sections often to provide you with the most up-to-date information available.

Articles

Everything You Need to Know About Coronavirus Federal Small Business Stimulus Aid Programs
The Coronavirus Preparedness and Response Supplemental Appropriations Act enables the U.S. Small Business Administration to offer $7 billion in disaster assistance loans to small businesses impacted by COVID-19.
Read More >>

Coronavirus (COVID-19): Small Business Guidance & Loan Resources
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).
Read More >>

Express Bridge Loan Pilot Program Guide
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork.
Read More >>

CARES Act
Recipients of a SBA 7(a) loan may be eligible for forgiveness of indebtedness on a covered 7(a) loan in an amount equal to the cost of maintaining payroll between March 1, 2020 and June 30, 2020.
Read More >>

Find Your SBDC
Small Business Development Centers (SBDC) are offering assistance to small businesses. Find your SBDC here.
Read More >>

Carranza Implements Automatic Deferment on Existing SBA Disaster Loans Through End of 2020
The SBA has amended its disaster loan criteria to help borrowers still paying back SBA loans from previous disasters. Deferments through December 31, 2020, will be automatic.
Read More >>

Lender Match Helps You Find Lenders
SBA has developed Lender Match, a free online referral tool that connects small businesses with participating SBA-approved lenders within 48 hours.
Read More >>

While you may be facing uncertainty, there is one thing you can be certain of: SCORE is here for you.
SCORE is offering assistance in filling out SBA loan applications.
Read More >>

SBA Economic Disaster Loan Programs Zoom Information Session
The Capital Region Chamber and Small Business Development Center have put together a webinar on the Small Business Administration's Economic Disaster Loan Programs.
Read More >>

Coronavirus Resources: An Overview of the CARES Act with the Public Affairs Team
The National Restaurant Association has put together an overview of the CARES Act specifically for restaurant.
Read More >>

Plan, Prepare and Respond to Coronavirus Disease 2019
The CDC has developed a guide for businesses to prevent workplace exposures to help prevent COVID-19, in non-healthcare settings.
Read More >>

Guidance for Determining Whether a Business Enterprise is Subject to a Workforce Reduction Under Recent Executive Orders
Empire State Development has published a guide to assist businesses in determining whether they are an essential business.
Read More >>

Novel Coronavirus FAQ for Businesses
Empire State Development has created an FAQ to offer information to businesses regarding State regulations and general guidance related to the coronavirus.
Read More >>

Submit Your COVID-19-Related Business Questions Here
Businesses can submit questions relating to COVID-19 to Empire State Development here.
Read More >>

Department of Financial Services
There has been an uptick of coronavirus scams on social media, emails, texts and websites. Specifically, scammers are impersonating the U.S. Center for Disease Control (CDC) and the World Health Organization (WHO).
Read More >>

10 Point Plan
Governor Cuomo announced the "New York State on PAUSE" executive order, a 10-point policy to assure uniform safety for everyone. The 10-point NYS on PAUSE plan is as follows.
Read More >>

Disaster Loan Assistance
Businesses may apply directly to the Small Business Administration (SBA) for possible assistance. If your business has sustained economic injury as a result of COVID-19, you may be eligible for financial assistance from the SBA.
Read More >>

What You Need to Know and Do About the CARES Act
New York Department of Labor Tells You What You Need to Know and Do About the CARES Act.
Read More >>

Keeping Workers Paid and Employed, Health Care System Enhancements, and Economic Stabilization
Check out this section by section overview of the emergency business loans have been provided by the U.S. Chamber.
Read More >>

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