The Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on Friday, March 27, 2020. This act includes a provision for SBA loans to businesses meeting certain qualifications with loan forgiveness and payment deferral options. The Paycheck Protection Program is intended to provide capital for businesses negatively impacted by the COVID-19 pandemic. These loans will be originated through SBA 7(a) lenders, including First Community.
More information on PPP loans, including information on loan forgiveness, can be found on the SBA website.
We are accepting applications for the PPP loan. The last day to submit a new application is August 8, 2020.
Once First Community receives guidance from the SBA regarding the forgiveness application you will receive a link to apply for loan forgivness. We cannot accept paper applicaitons.
The SBA loans will be subject to the following terms:
- Maximum loan is 5 years
- Interest rate on the borrowings is capped at 1.0%, with interest payments being deferred for six months
- No prepayment penalty exists
- No personal guarantee or collateral guarantee is required
- The application does not have to satisfy the eligibility elsewhere test, in which they have the ability to obtain credit elsewhere
Must qualify for membership.