Coronavirus Relief Acts
The information below refers to the original CARES Act funding from April - July 2020.
Paycheck Protection Program (PPP) Overview - Round 1 of Funding
In summary, eligible borrowers work with lenders to apply for, and receive, loans up to 2.5 times their average monthly payroll expenses for the prior year. Loans carry a one percent interest rate with up to a five-year term. Loan payments are deferred for the first six months of the loan.
Additionally, PPP loans contain a forgiveness process for funds spent on covered expenses, including both principal and interest, to be forgiven for the borrower with no tax consequence (i.e., forgiveness of indebtedness income is waived). Any remaining balance after the loan forgiveness period maintains a 100% government guarantee while the borrower makes payments.
Borrowers are broadly eligible if they have 500 or fewer employees or are certain businesses that meet SBA size standards. Additionally, 501(c)(3) nonprofits, 501(c)(19) veterans organizations, and certain others may qualify for PPP loans. Borrowers may also be sole proprietors, independent contractors, or self-employed.
Borrowers must have been in operation on February 15, 2020 and employed either salaried employees subject to payroll taxes or paid independent contractors. For more information, contact your Busey relationship manager.
PPP Flexibility Act of 2020
On June 5, 2020, President Trump signed legislation approving the Paycheck Protection Program Flexibility Act of 2020—which alters critical terms of the loan program.
To ensure you are in the best position for maximum loan forgiveness, we strongly encourage you to familiarize yourself with all currently available guidance relative to the forgiveness application and gather the required documentation prior to the date you plan to submit your application. Under program rules, it is the borrower’s responsibility to understand and comply with all loan forgiveness provisions. By submitting the application, you are certifying an understanding of these rules. Guidance and application documents can be found on the SBA’s PPP Webpage.
PPP Customer Portal
This online portal is designed to streamline the PPP loan forgiveness process, providing Busey customers an intuitive and easy-to-use tool to use while applying for forgiveness. To help you navigate the application process, we’ve developed a PPP Customer Portal Instructional Video—see below.
This video provides borrowers with a step-by-step guide through the loan forgiveness application process using Busey’s Customer Portal—from the initial steps of establishing credentials and logging into the portal all the way through submitting the final application—to make the process as seamless as possible.
By submitting an application to Busey for a loan under the PPP, the applicant(s): (a) understand that Busey anticipates a high volume of applications and there may be processing delays and system failures that interfere with submission of an application to the SBA, that Busey does not represent or guarantee that it will submit an application before funds are no longer available under the PPP or at all, and that Busey will not be responsible if applicant(s) do not receive a loan because funds are no longer available under the PPP, because funds were not disbursed within ten (10) days of SBA approval, or for any other reason, (b) certify that all information contained in such application or otherwise delivered from time to time in connection with such application is true in all material respects, (c) understand that Busey will rely on such information in deciding whether or not to grant or continue credit to the applicant(s) and in the administration of any loan to applicant(s) under the PPP, (d) understand that an application will only be considered a complete application upon the submission of all supporting documentation required by the application and that the applicant(s) may be asked for additional information based upon SBA rules from time to time in effect and/or required by Busey, (e) understand that Busey’s acceptance of an application does not constitute a promise or commitment to lend to applicant(s), (f) understand that Busey can only make a loan if funds remain available under the PPP and Busey does not control how quickly the SBA will respond to any application or in what order, and (g) understand such application and any potential loan to applicant(s) is subject to the requirements of the PPP, which may change at any time, without notice.
Busey is grateful to partner with you and your families—through life’s ups and downs—today and for generations to come.