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COVID-19 Business Assistance

There are many financial options to help our business members through this difficult time. We are here for you! Belco understands the hardships our business members may be facing You are not alone, and there are resources available to help.

Paycheck Protection Program Loan (PPP)

The PPP application period for small businesses with employees opens Friday, April 3. Independent contractors and self-employed individuals can apply starting Friday, April 10. Applications can be submitted prior to April 3, but they will not be submitted to the SBA until the dates referenced above.

New Applications

Due to the overwhelming response from our Business Members for the Paycheck Protection Program (PPP) loan, Belco is no longer accepting new applications. If you would like to start a new application for the PPP loan, the following is a link to one of our trusted Partners (Newtek Business Services), who will be able to assist you. https://www.newtekone.com/ 

Existing Applications

If you started an application with Belco prior to 4/11/2020 through the Member Business Financial Services application portal, you can still access that portal to upload information.

What is the Loan?

The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.

All Lenders will have the same terms regardless of lender or borrower. Agents are not permitted to charge a fee to the borrower and all agents are to be paid by the lender.

The program provides cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. Funds are provided in the form of a loan that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities. Due to likely high loan demand, at least 75% of the forgiven amount must have been used for payroll in order to be forgiven.

Loan payments will be deferred for 6 months.

Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.

The loan amounts will be forgiven as long as:

  • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
  • Employee and compensation levels are maintained.

You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.

You will also owe money if you do not maintain your staff and payroll.

What will I need to apply?

Please be prepared with the necessary documentation to support your application. An incomplete application will delay the process. Please keep in mind this is a government backed program with a limited amount of funds. Any delay in the application process due to a lack of information could exclude you from the loan program. The required documentation will likely include:

  • Articles of Incorporation/Organization (Corporations) or Bylaws/Operating Agreement (LLCs) or Business License (Sole Proprietorships)
  • 2019 IRS Quarterly 940, 941 or 944 payroll tax reports
  • Monthly Payroll Reports for 2019
  • Payroll report must show the following for the time period above: gross wages for each employee (including the officer(s) if paid W-2 wages); paid time off for each employee; vacation pay for each employee; family medical leave pay for each employee; and state and local taxes assessed on the employee’s compensation for each employee
  • 1099s for 2019 for independent contractors that would otherwise be an employee of your business (do NOT include 1099s for services)
  • Documentation showing total of all health insurance premiums paid by the Company Owner under a group health plan (include all employees and the company owners)
  • Document the sum of all retirement plan funding that was paid by the Company Owner (do not include funding that came from the employees out of their paycheck deferrals) – include all employees, including company owners, 401K plans, Simple IRA, SEP IRAs
  • Debt schedule for operating business
  • List of owners of the business if not included in tax return
  • Copy of Driver’s License for signers of business (this is likely for 20%+ owners)

Who can Apply?

All businesses – including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors – with 500 or fewer employees can apply.

What do I need to certify?

As part of your application, you need to certify in good faith that:

  • Current economic uncertainty makes the loan necessary to support your ongoing operations.
  • The funds will be used to retain workers and maintain payroll or to make mortgage, rent/lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide to the lender documentation that verifies the number of full-time equivalent employees on payroll and the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after getting this loan.
  • Loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs.
  • All the information you provided in your application and in all supporting documents and forms is true and accurate. Knowingly making a false statement to get a loan under this program is punishable by law.
  • You acknowledge that the lender will calculate the eligible loan amount using the tax documents you submitted. You affirm that the tax documents are identical to those you submitted to the IRS. You also understand, acknowledge, and agree that the lender can share the tax information with the SBA’s authorized representatives, including authorized representatives of the SBA Office of Inspector General, for the purpose of compliance with SBA Loan Program Requirements and all SBA reviews.

Small Business Administration (SBA) Disaster Recovery Loan

The U.S. Small Business Administration has administratively declared the state of Pennsylvania as an economic disaster. The SBA offers disaster assistance in the form of low-interest loans to businesses, renters, and homeowners located in regions affected by declared disasters.

More information can be found at https://disasterloan.sba.gov/ela/.

Chambers of Commerce

Your local Chamber of Commerce is also a great resource for information and different assistance options. Links to local chambers within our footprint are provided below:

Harrisburg – http://www.harrisburgregionalchamber.org/coronavirus/

West Shore – https://wschamber.org/a-letter-from-the-president-covid-19-resources/

Lancaster – https://www.lancasterchamber.com/Apps/Pages/coronavirusnews

Carlisle – https://www.carlislechamber.org/

Lebanon Valley – https://lvchamber.org/

Gettysburg and Adams – http://www.gettysburg-chamber.org/

Hanover – https://www.hanoverchamber.com/blog/covid19-update

If you need any financial relief during this time, please contact a local branch or our Member Service Center at 800.642.4482 for more details on the options available. We are proud to support our business members and community.

Thank you for Believing in Belco!