Chief Credit Officer, Steve Marchek, who has a long history of working with financial institutions at all levels and vast experience working on Small Business Association (SBA) loans, specializes in finding unique ways to structure financing and maximize opportunities for business growth. Marchek offers the following information and tips for companies struggling with the financial consequences of COVID-19.
- Work with your banker to explore SBA loan options including the Economic Injury Disaster Loan (EIDL) program and the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- The goal of EIDL program is to provide the necessary working capital for businesses to pay expenses that would otherwise be paid through business operations had the disaster not occurred.
- Loans are available up to $2,000,000
- Interest rates of 3.75% for small businesses, and 2.75% for non-profits
- No application fees
- Payments are deferred for the first 11 months.
- Loan term of up to 30 years.
Paycheck Protection Program is also available offering:
- Loans to cover payroll costs and benefits for 2.5x the average monthly amount up to $10 million
- Interest rates of 1%
- Loan term up to two years
- Automatic payment deferral for up to 6 months
- Loan forgiveness for businesses that maintain payroll continuity, including maintaining headcount and using more than 75% of the loan amount for payroll expenses through the covered period
- Sole proprietors, independent contractors and self-employed individuals are eligible
- Develop a plan with your banker to address non-essential operating expenses along with loan deferral options.
- Strengthen your relationship with your CPA and Attorney to understand tax implications and legal requirements during this challenging time.
While Crown Bank lobbies are restricted now due to COVID-19, deposits are still be accepted and bankers are available by appointment at 952-285-5000 (Edina) or 612-746-5050 (Minneapolis).