COVID-19 relief program
Kohler Credit Union is committed to helping small businesses navigate their way through the COVID-19 government loan relief options.
The Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) are two federal loan programs aimed at helping small businesses who have been severely impacted by COVID-19.
- Paycheck Protection Program is part of the new CARES stimulus package. Businesses can receive 2.5 times their average monthly payroll at a 1% fixed rate and a 24-year term (max of up to 10 years amortization, balloon payment following the 2 year term) and 6 month payment deferral (max of up to 12 months). Business owners can also apply for loan forgiveness. The forgiveness program supports employment. If the company does not maintain certain levels of employees or compensation, then part of the loan will not be forgiven.
- Economic Injury Disaster Loan allows businesses to receive up to $2,000,000 at a 3.75% interest rate with a 30-year term.
For both programs:
- Payment is deferred for 6 to 12 months. Loan proceeds from each program can be applied to payroll expenses, rent, utilities and other operating expenses that can’t be paid because of COVID-19’s impact.
- A company must be either (i) a small business concern under the SBA regulations, or (ii) a business concern, nonprofit organization, veterans’ organization, or Tribal business concern that employs not more than 500 employees (or the number of employees in the size standard applicable to the borrower’s industry, which for some industries is up to 1500 employees). Businesses in the Accommodation and Food Services Industry with more than 500 employees in multiple locations can avail themselves of the PPP loan program as long as they have 500 or fewer employees per location.
- Program FAQs
If a business owner wants to apply:
For the Economic Injury Disaster Loan, all businesses will work directly with the SBA. They can apply through the SBA’s website.
For the Paycheck Protection Program, please complete the contact form below and we will be in contact with you.