LUBBOCK – March 26, 2020 – This is a news release from Lubbock National Bank.
Lubbock National Bank will provide stimulus loans to local businesses as part of the small-business section of the Coronavirus Aid, Relief and Economic Security (CARES) Act. The CARES Act has been approved by the U.S. Senate and House approval.
The stimulus package is awaiting President Trump’s signature. “We are ready to help and ready to provide loans to small businesses in our area as soon as it’s approved,” says Paul Dannevik of LNB. “We are here for Lubbock’s businesses.”
The Payroll Protection Program applies specifically to businesses with fewer than 500 employees, Dannevik explains. “The government will take care of your fixed costs for two-and-a-half months, if you will keep your business open and don’t lay off your employees,” he says. “If you don’t lay off anyone for four months, the entire loan will be forgiven.”
Lubbock National Bank will be a source for these government-backed loans. “The standard fees imposed by the Small Business Act are waived and no personal guarantee or collateral are required by the business owner, as long as you commit to having the same number of employees on your payroll as you did February 15th,” says Dannevik. “All companies need to provide are a few documents.” These include three years of financials, a payroll list, rent expenses and utility bills. “We’ll handle all the paperwork,” he says.
The amount of the loan can be determined by adding up monthly payroll, health insurance, rent and utilities, then multiplying these fixed costs by 2.5. Loans will be forgiven for businesses that retain their employees from February 15 through June 30, 2020. Loan amounts that are not forgiven will be payable over 10 years at no more than a 4% interest rate.