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CARES Act Update, including the Paycheck Protection Program and other relief efforts.

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CARES Act Business Loan Programs

Business support amid financial hardship

At Stearns Bank N.A., we are committed to supporting you and your business as you navigate the fast-changing programs developing under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

In these extraordinary and challenging times, we're here for you to help sort through the many relief programs available, with clarity and compassion.

Lending Programs for Covid-19 Relief

Payment Protection Plan

Paycheck Protection Program (PPP)

PPP loans help small businesses keep operating by covering short-term expenses such as payroll.

Learn more

New SBA 7(a) or Express Loans

New SBA 7(a) or Express Loans

New loans available to assist with business needs.

Learn more

Immediate payment relief of SBA loan

Immediate Payment Relief of SBA 7(a) Loans

Existing SBA loan customers through the CARES Act will receive immediate payment relief. Also available to new applicants through the CARES Act.

Learn more

Paycheck Protection Program (PPP)

U.S. Capitol

As you know, Congress passed a supplemental appropriation of $310 billion to the SBA for additional PPP loan funding. The SBA resumed accepting PPP applications processed through participating lenders on Monday, April 27. The demand for the SBA’s initial allocation ($349 billion) in PPP funding was so overwhelming, funding ran out after two weeks, on April 16, with the SBA funding 14 years’ worth of PPP loans in those 14 days.

The SBA’s supplemental PPP funding allotment is expected to go even faster because the need is so great. It’s extremely disheartening that the SBA will not be able to fund every PPP application and not every application will get submitted, reviewed or processed in time to receive SBA approval before funding is gone.

This is a difficult and trying time for small business. The limited allotments of PPP funding available to the SBA and shortage of other federal government assistance for small business amid the broader backdrop of the scarcity of resources, from groceries to medical testing kits, heightens the stakes and escalates the urgency of this crisis to new, alarming levels.

We understand your business may need immediate financial help. While we've reviewed and obtained SBA approval for thousands of PPP loans, we're disappointed the SBA does not have enough funding for every small business and they cannot approve every PPP loan application. There are processing and approval limitations beyond our control. The amount of funding available to the SBA is limited. The number of applications we have the capacity to review and process is limited. And the number of applications the SBA can approve is limited.

Due to the unprecedented demand for the limited supply of SBA funding, we recommend you reach out to another lender for PPP loan assistance.

Thank you for looking to Stearns Bank. We're here for you and we're sincerely dismayed we cannot assist you with this specific request.

Additional Resources, Financial Assistance

The SBA has published this tool to help locate lenders participating in PPP loans. We're not endorsing the banks included on the list but want to make them accessible to you.

Businesses can continue to pursue their SBA Economic Injury Disaster Loan (EIDL) program, if a business applied for an EIDL. The SBA received additional funding to continue processing EIDLs in their queue with the new Congressional appropriation. The EIDL program provides for a $10,000 EIDL loan advance that does not have to be repaid to the SBA. Applications for EIDL loans are handled directly by the SBA.

State and Local COVID-19 Financial Assistance

  • Many state and local programs are available offering disaster loans and emergency grants
  • Various non-profits and private companies across the country have formed special emergency relief funds

A thoughtful and thorough resource initially published by Forbes on March 20, with an update on April 15, provides information as a resource guide for small businesses in need of emergency funding.

reviewing Paycheck Protection Program documents

New SBA 7(a) or Express Loans

Covid-19 has affected businesses in unexpected ways. If your business needs a loan to support expansion, renovation or other improvements, we’d be honored to help you.

Through the CARES Act, any new SBA 7(a) or Express loan closed by Sept. 27, 2020, will be eligible for payment relief with the SBA, including payment of principal and interest for six months.

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business owner at computer

Immediate Payment Relief of SBA 7(a) Loans

Through the CARES Act, the SBA will pay six months of principal, interest and fees owed on current SBA 7(a) loans that are in regular servicing. Contact your SBA lender to confirm that your loan qualifies.

For existing borrowers on deferment: After the deferral period ends, the SBA will pay six months of principal, interest and any associated fees.

See frequently asked questions: Implementation of Section 1112 Act Subsidy for Certain Loan Payments.


Helping You Better Understand the CARES Act

The CARES Act contains very detailed application requirements and significant borrower documentation and compliance rules. It is essential that you consult your payroll specialist and review your options with the counsel of a tax professional.

Before applying with a lender, you must fully understand the requirements and compliance rules you are responsible for under federal law and Treasury rules for the CARES Act PPP Loan.

Please review the links below: