Small Business & Commercial Relief Programs
As a result of COVID-19 and its impact on the business community, Industrial Bank has developed several programs to support existing business clients with a goal of helping your business thrive in the face of an ever-changing environment. Please note that the deferral program is only existing Industrial Bank loan customers. The following information will outline the various relief options that are available to Industrial Bank customers.
1. INDUSTRIAL BANK PAYMENT DEFERRAL PROGRAM - This program involves a payment deferral request that customers may be eligible for if their existing commercial loan account is in good standing. The Bank is offering deferred payments for up to 120 days (with the possibility for an additional 60-days) for qualified borrowers. f you are in need of this program, please complete the COMMERCIAL DEFERRAL APPLICATION. Once your application has been submitted, your Industrial Bank Relationship Manager will call you with further instructions.
We believe in close communication in times like these and will be reaching out as needed to see how your business is weathering the economic environment. We also encourage you to contact your Relationship Manager to discuss how COVID-19 is directly impacting your business’ ability to sustain operations, as well as preventing you from making scheduled payments.
2. PAYCHECK PROTECTION PROGRAM – Paycheck Protection Program (PPP) is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the SBA with rules, requirements, protocols and processes that all participating banks, including Industrial Bank, must follow. In order to ensure an orderly flow of these government-provided funds, we will follow the intent of the U.S. Treasury guidance, including what has been posted at the U.S. Treasury website, that businesses that plan to apply should do so with their current business loan provider. A client’s pre-existing lending relationship with us may include small business, commercial or corporate credit cards, conventional business loan or lease, business lines of credit, and asset-based loans. This is the best and fastest method for applying for federal relief, based on the U.S. Treasury requirements and guidance. All applications, information and correspondence about the Paycheck Protection Program at Industrial Bank will occur online and through email, including the application process, submission of required documents, and follow up correspondence. IF THE BUSINESS FAILS TO SUBMIT ALL THE DOCUMENTATION REQUIRED THE APPLICATION WILL BE CONSIDERED INCOMPLETE AND WILL NOT BE SUBMITTED FOR PROCESSING. Below is a high level overview of the program:
a. SBA loans under Section 1102 of the CARES Act (sometimes referred to as "7(a) Loans") which are eligible for the PPP program are available to employers with less than 500 employees. Such loans will be handled through the Bank and guaranteed 100% by the SBA.
b. A tax-exempt nonprofit organization described in section 501(c)(3) of the Internal Revenue Code (IRC) is eligible for the PPP program, which includes faith based institutions. Please see the SBA Faith Based FAQ for details.
c. Loan Amount – Historic payroll information is used to calculate the loan amount and this is supposed to be based on the average monthly payroll expenses for a 12 month period multiplied by 2.5. Projected payroll expenses are not eligible to be considered. The loan can be used to support payroll, salaries, wages, rent, utilities, etc. and some or all of the loan has the potential to be forgiven but there are strict documentation requirements that have to be met and must be submitted by the Borrower after an 8 week period, the Lender reviews and validates the information and determines the forgivable amount. Please note that at a minimum, for the PPP loan to be considered forgivable 75% of the PPP loan MUST be used to support payroll costs, limiting non-payroll costs to 25%. This 75% minimum was set to achieve the CARE Act’s overarching goal of keeping workers paid and employed.
d. Term – the loan is for 2 years
e. Interest Rate – fixed at 1.00%, payments are deferred for the first 6 months but interest will accrue during this time
f. Please see the PPP Fact Sheet and the PPP Overview for additional details.
NOTE IF THE BUSINESS FAILS TO SUBMIT ALL THE DOCUMENTATION REQUIRED THE APPLICATION WILL BE CONSIDERED INCOMPLETE AND WILL NOT BE SUBMITTED FOR PROCESSING. IN ESSENCE, YOUR APPLICATION WILL BE REMOVED FROM THE PROCESSING QUEUE AND WILL ONLY BE PLACED BACK INTO THE QUEUE ONCE THE REQUIRED DOCUMENTATION HAS BEEN PROVIDED. BEING REMOVED FROM THE WORKFLOW QUEUE WILL POTENTIALLY RESULT IN THE BANK NOT BEING ABLE TO FUND YOUR REQUEST DUE TO LIMITED RESOURCES UNDER THE PROGRAM. THEREFORE PLEASE THOROUGHLY REVIEW THE CHECKLIST AND PROVIDE THE INFORMATION BASED ON THE GUIDANCE. IF YOU HAVE ANY QUESTIONS PLEASE CONTACT THE BANK AT PPPapplications@industrial-bank.com
3. Payment Relief for Current SBA Borrowers – this was included in the CARES Act whereby SBA will be paying 6 months of principal and interest payments on all SBA loans that are in “regular servicing status” meaning they are not past due. Please note that SBA will be making principal and interest payments; however, they will not be paying for any additional expenses above and beyond that. The guidance has directed Lenders to discontinue collecting any payments after March 27, 2020 and SBA will begin making payments within 30 days thereafter.
4. SBA Disaster Loans (also known as Economic Injury Disaster Loans (EIDL): This is a loan between the borrower and the SBA and Industrial Bank is NOT involved. The EIDL loans are available to businesses affected by the COVID-19 disaster and are available directly through SBA. Industrial Bank does not facilitate submission to this program or coordinate funding. For additional information, please visit https://www.sba.gov/disaster-assistance/coronavirus-covid-19
a. New information was just released that the SBA is now offering up to $10,000 immediate cash advance on applications that are submitted, to apply, please visit: https://covid19relief.sba.gov/#/
b. Free assistance for the Disaster loan application is available through local SCORE and SBDC offices
For additional resources including grants and loan programs for small business, please visit the following:
US Small Business Administration (SBA):