Read below for details on significant changes
and impacts to Busey customers:
For more information on these impact areas, see the list below:
Individual taxpayers may be entitled to a $1,200 recovery rebate payment. For those who have filed their 2019 tax returns, the IRS will use that information to calculate the payment amount. For those who have not yet filed, the IRS will use 2018 data.
- Have a Busey Bank account on file with the IRS? You will likely receive your payments electronically within a month. Check IRS.gov for the latest information. No action is needed by most people at this time.
- Not sure? Change your direct deposit information and update your mailing address on the IRS website for a quicker deposit. If you do not have an account with the IRS, you will likely receive a paper check. Deposit that check at our branches or by using your Busey app.
Mortgage forbearance provisions in the CARES Act require mortgage servicers of government-backed loans to grant up to 180 days of forbearance to borrowers who request it and make affirmation of financial hardship due to COVID-19.
At Busey, various options will be available to Busey mortgage customers including payment relief for up to 12 months and waiver of late fees. There will be no credit bureau impact with granted deferrals. In addition—to help keep people in their homes—Busey will halt foreclosure sales and evictions of borrowers until at least May 17, 2020.
Additionally, since the Treasury extended the 2019 income tax return filing date from April 15 to July 15, the date for making 2019 IRA and Roth IRA contributions has been extended to the same date.
Detailed information on retirement plan and IRA provisions included in the CARES Act is available at Busey's Money Matters blog. To learn more about your options and how these updates impact you, please contact your Busey Wealth Management advisor.
All payments for federal student loans are deferred through September 30, 2020. Contact your student loan servicer to discuss eligibility and options.
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, which can be issued through June 30, 2020 or until funds run out, will carry a one percent interest rate with a two-year term. Loan payments are deferred for the first six months of the loan.
Additionally, PPP loans contain a forgiveness process, allowing up to eight weeks of 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.
Paycheck Protection Program (PPP) Flexibility Act of 2020
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.
Busey is closely monitoring the release of any new information pertaining to PPP loan forgiveness to best prepare you for this crucial phase. We are committed to remaining your valued partner as we navigate this process together.
Paycheck Protection Program (PPP) Customer Portal
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.
As we continue to navigate the ever-changing COVID-19 landscape together, Busey is working to keep you informed by communicating market updates and important impacts to your finances. To learn about the latest developments and how they may affect you, we invite you to participate in our new series of complimentary webinars.
The information provided in this Webinar is for general informational purposes only. It is not intended to be specific advice. Please contact your Busey Wealth Management advisor to discuss solutions tailored to your unique situation.
Busey is grateful to partner with you and your families—through life’s ups and downs—today and for generations to come.