The CARES Act
Assistance for Small Businesses
Merchants Bank of Indiana is committed to helping your small business during these challenging times. We are dedicated to monitoring and responding to the evolving changes concerning COVID-19. Please reach out to your banker with any questions and concerns you may have regarding the impact of the COVID-19 pandemic.
Your small business is very important to Merchants Bank and recognize the importance of your service to our communities and your employees. Below is a list of resources to help you and your business through this uncertain time.
The Coronavirus Aid, Relief and Economic Security (CARES) Act contains several provisions to help your business or nonprofit organization, including a Small Business Administration loan called the Paycheck Protection Program (PPP). This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19. To apply for this loan program, please contact your banker listed below.
Paycheck Protection Program (PPP) Highlights
- The purpose of the program is to provide emergency working capital to keep your business operating during COVID-19
- You may use the funds for working capital, including payroll expenses, mortgage interest payments, rent and utilities, interest on debts that were incurred prior to February 15, 2020.
- You may apply for an amount equal to 2.5 times your average monthly payroll up to a maximum of $10,000,000
- Part or all of the loan can be forgiven depending on employment levels and use of the funds. SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
- Applicants have until June 30, 2020 to apply, however there is a funding cap
- Interest rate is 0.50%
- Any amounts not forgiven can be repaid over 2 years, with prepayments allowed anytime without penalty
You will need the following to apply:
- Completed Paycheck Protection Program Application – Download here
- 2019 and 2020 year-to-date monthly profit and loss statement
- 2019 and 2020 year-to-date payroll reports
- State income, payroll, and unemployment insurance filings
- Tax ID/EIN and complete ownership information
Additional documents may be needed.
Applications will be accepted for the Paycheck Protection Program beginning April 3, 2020. Applications for independent contractors and self-employed individuals can apply on April 10, 2020. Please complete the application and contact your banker for instructions on submitting your application. If you need further assistance, please call 317.805.4300.
Economic Injury Disaster Loans (EIDL)
The SBA’s Economic Injury Disaster Loan (EIDL) program is another loan option providing small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
To apply for the Economic Injury Disaster Loan Program, you must do so directly with the SBA, not your bank. To learn more about the Economic Injury Disaster Advance Loan program, please contact the SBA Indiana District Office at 317.226.7272.
- How to Apply: sba.gov/disaster