SBA Disaster Assistance
We first and foremost hope you and yours are safe and healthy as we face the developing situation surrounding COVID-19. While the pandemic presents an evolving challenge, our SBA Lending Team is monitoring, preparing and taking actions daily to keep our mission to you intact.
We are in continuous contact with the local SBA office and pleased to provide with the latest information:
1. Disaster loans are now available in Texas. Businesses will need to apply directly through SBA’s website. Loans will be available for working capital with an interest rate of 3.75% for any businesses that can show they have been harmed by the economic impact of COVID-19. Based upon the SBA’s analysis of the applicant’s financial condition and need, the SBA will determine:
- The amount of the loan (up to $2,000,000);
- The monthly repayment amount; and
- The loan terms
The SBA disaster loan process is expected to take approximately four (4) weeks from application submission. Applicants will need to provide:
- Two (2) years of business tax returns;
- Two (2) years of business financial statements (preferably monthly rather than quarterly or yearly);
- Completed IRS 4506-T form;
- Completed SBA personal financial statement form; and
- A schedule of all short- and long-term monthly obligations (loans, rents, vendors, payables, ect.).
In most cases, loan proceeds will be paid out in $25,000 increments. Businesses that receive approval are not obligated to take the entire loan amount should they feel they no longer need the funds.
2. The SBA will allow us to consider a 90-day loan payment deferral for all current CommunityBank of Texas SBA Loan Clients. To qualify for loan payment deferral:
- You must be current on all exceptions;
- Provide current personal and business financials; and
- Document in writing how your business is being negatively impacted by COVID-19 along with steps your business is taking to minimize overhead costs.
Please bear in mind all deferral request will be subject to approval by our credit committee and loan payment deferrals mean that your regular loan payment costs may increase after the deferral period is over.
3. The Paycheck Protection Program (PPP) is designed to bridge payroll and other expenses through a 24-week period lasting no later than December 31, 2020. PPP will be administered through the SBA with the intent to provide loans to businesses impacted by the challenging economic environment. The current incarnation of the Paycheck Protection Program ended on August 9, 2020 and therefore we are no longer able to accept applications for PPP loans.
Since April, we have processed more than 2,000 Paychek Protection Program (PPP) loans to fund over $331 million for businesses in our communities. Our team here at CommunityBank of Texas never takes for granted the trust you place in us and our privilege to serve you. And as your banking partner, we are pleased to be able to participate in the program and help you through this difficult time.
CommunityBank of Texas has been working diligently to provide our PPP loan customers with an efficient way to complete their PPP loan forgiveness application. You will receive a communication from us just as soon as our forgiveness application processes are complete and we are ready to accept PPP forgiveness applications. In the meantime, if you would like to review the most recent version of the PPP Forgiveness Application, may we direct you to the SBA or The Department of Treasury where you will find the application forms as well as the most recent information regarding the forgiveness aspect of the PPP program.
We understand the evolving challenges your business is up against and our team is continuing to monitor, prepare and take daily action to keep our mission to you intact.
If you are interested in a personalized loan payment deferral plan with CommunityBank of Texas, please feel free to contact your SBA Loan Officer at:
Dan Garcia – 713.308.5744 or firstname.lastname@example.org
Jerry Tarnopol – 713.308.5778 or email@example.com
Paul Reade – 713.308.5760 or firstname.lastname@example.org
Please let us know if there is anything we can do to help you or any additional ways in which we can assist as your banking partner.
Take good care of yourself and each other.