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ATTENTION BUSINESS OWNERS - Additional SBA PPP loan funding is now available. If you did not get a PPP loan from us during the first round and think you might qualify, please contact your Clear Mountain banker TODAY to get started.

For information on the government's Economic Impact Payments, please visit the IRS website. With this tool, you can see the date your payment is scheduled to be deposited in your bank account or mailed to you.

We are experiencing extremely heavy call volume due to COVID-19. While we’ve proudly been answering customer phone calls in person for more than 100 years, you may be greeted by an automated answering service and you may experience an extended hold time, but we are committed to answering your call as quickly as possible. We highly encourage the use of our electronic banking services during this time.

Use these links for our most up-to-date COVID-19 information.

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SBA Loans for Business Customers


SBA Loans for Business Customers

Frequently Asked Questions for the Small Business Administration Paycheck Protection Program (PPP)

*This document is for informational purposes only and is subject to change. Final rules, determinations and guidelines are subject to the Small Business Administration (SBA).

Is Clear Mountain Bank participating in the Paycheck Protection Program from the Small Business Administration (SBA)?

Yes, we are participating in the Paycheck Protection Program (PPP) offered through the Small Business Administration and we are currently accepting and processing requests from Clear Mountain Bank business customers at this time.

What is the Paycheck Protection Program?

The Paycheck Protection Program authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.

Under this program, 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.

Payroll costs are capped at $100,000 on an annualized basis for each employee. Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. Loan payments will be deferred for 6 months.

What are the eligibility criteria for small business borrowers?

All businesses – including nonprofits, veterans’ organizations, tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors with 500 or fewer employees can apply. Businesses in certain industries can have more than 500 employees if they meet applicable SBA employee-based size standards for those industries.

For this program, the SBA’s affiliation standards are waived for small businesses (1) in the hotel and food services industries as listed in ; or (2) that are franchises in the SBA’s Franchise Directory; or (3) that receive financial assistance from small business investment companies licensed by the SBA. Additional guidance may be released as appropriate.

Do I need to first look for other funds before applying to this program?

No. We are waiving the usual SBA requirement that you try to obtain some or all of the loan funds from other sources (i.e., we are waiving the Credit Elsewhere requirement).

How many loans can I take out under this program?

Eligible borrowers may only receive one PPP loan.

How long will this program last?

The program is open until June 30, 2020, however, there is a funding cap.

What can I use these loans for?

The proceeds of a PPP loan are to be used for:

  1. Payroll costs (as defined in the CARES Act and SBA’s IFR)
  2. Costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums
  3. Mortgage interest payments (but not mortgage prepayments or principal payments)
  4. Rent payments
  5. Utility payments
  6. Interest payments on any other debt obligations that were incurred before February 15, 2020; and/or
  7. Refinancing an SBA EIDL loan made between January 31, 2020 and April 3, 2020.

What qualifies as payroll costs for a small business?

Payroll costs consist of:

  1. Compensation to employees with principal residence in the United States
    1. Salary, wages, commissions, or similar compensation,
    2. Cash tips or the equivalent based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips
  2. Payment for vacation, parental, family, medical, or sick leave
  3. Allowance for separation or dismissal
  4. Payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement
  5. Payment of state and local taxes assessed on compensation of employees

What is excluded from the definition of payroll costs?

The CARES Act expressly excludes:

  1. Any compensation of an employee whose principal place of residence is outside of the United States
  2. The compensation of an individual employee in excess of an annual salary of $100,000, prorated as necessary
  3. Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including:
    1. Employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and
    2. Income taxes required to be withheld from employees; and
  4. Qualified sick and family leave wages for which a credit is allowed under sections 7001 and 7003 of the Families First Coronavirus Response Act (Public Law 116–127).

Are sole proprietorships, independent contractors, and the self-employed eligible for PPP loans?

Yes. Individuals are eligible for PPP loans if they operate as a sole proprietorship, independent contractor, or eligible self-employed individual, and if they were in operation on February 15, 2020.

What qualifies as “payroll costs” for an independent contractor or sole proprietor?

Payroll costs for an independent contractor or sole proprietor are wages, commissions, income, or net earnings from self-employment or similar compensation.

How large can my loan be?

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.

What is the interest rate on a PPP loan?

The interest rate is a 1% fixed rate.

When do I need to start paying interest on my loan?

All payments are deferred for 6 months following the date of disbursement of the loan. However, interest will continue to accrue during this six-month deferment.

When is the maturity date on a PPP loan?

The maturity is two (2) years.

Can I pay my loan earlier than 2 years?

Yes. There are no prepayment penalties or fees.

Do I need to pledge any collateral for these loans?

No collateral is required.

Do I need to personally guarantee this loan?

No. There is no personal guarantee requirement. However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue criminal charges against you.

How much of my loan will be forgiven?

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.

  • Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
  • Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019.
  • Re-Hiring: You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.

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, lease, and utility payments.
  • You have not and will not receive another loan under this program.
  • You will provide us 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 we 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. And you also understand, acknowledge, and agree that we 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.

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