SBA & USDA Lending Solutions

without hiring staff or incurring capital expenditures

Paycheck Protection Loans

Windsor will not be taking applications from businesses that are not current clients of our lenders at this time.

If you are a client of one of our lenders, please reach out to them for application instructions.

Due to the the changes implemented in the terms and the current status of the SBA’s submission process, many lenders have been forced to prioritize their current banking clients for this program.

We will do our best to get a better understanding of the lending landscape and who might be able to help, but at this time, much of the industry is still trying to understand not just the process, but the their applications.

SBA’s Paycheck Protection Program (PPP)

The CARES Act, passed on March 27th, provides an authorization for the SBA 7(a) program to provide relief loans for operating costs to eligible small businesses.

Here is what we know about the program at this point:

Loan Attributes

  1. If your business or Non-Profit has fewer than 500 employees (full time, part time or any other basis), you are eligible for this program.
  2. Lenders will have to determine if the business was in operations on February 15, 2020 and had employees for whom it paid salaries and payroll taxes, or paid an independent contractor.
  3. Borrowers must make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19.

Specific allowable uses of the loan include:

  1. Employee salaries (including commissions and tips)
  2. Group health premiums
  3. Mortgage, rent, and utility payments
  4. Interest on other debt obligations originating from before 2/15/20, not principal payments
  5. Retirement benefits
  6. State or local tax assessed on compensation
  7. Vacation, paid leave (family, medical, etc.)

What Businesses Are Eligible?

  • Loan amounts will be based on the average monthly payroll expense for the last 12 months multiplied by 2.5
  • Salaries in excess of $100k may not be considered
  • These loans will be guaranteed 100% by the US Government.
  • They will be 2-year term loans from the date of application for forgiveness.
  • The maximum interest rate will be 4%, with most recent guidance capping the rate at 1.0%
  • There will be no borrower fees for participating in the program.
  • There are no credit elsewhere tests for funds provided under this program.
  • There will not be any personal guarantees necessary or collateral requirements for these loans.
  • Any loan amount that is not forgiven by June 30, 2020 will amortize over 10 years.
  • Loan payments will be deferred for 6 months
    There will be no prepayment penalties.

Loan Forgiveness

The amount forgiven will equal the amount spent during the 8-week period after the note’s date on the following items:

  • Eligible Payroll Costs
  • Interest on commercial mortgages in place prior to February 15, 2020
  • Rent payments on lease obligations in place prior to February 15, 2020
  • Payments on utilities having service-commencement dates prior to February 15, 2020
  • You will also owe money if you do not maintain your staff and payroll
  • Due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll

Loan Payments

  • We expect the SBA to cover 6 months of payments for all current 7(a) borrowers in regular servicing. The details about how they will pay and report has yet to be determined, but the bill does allocate funding for this purpose.

We are seeking confirmation as to whether you can qualify for a Paycheck Protection loan and a disaster loan. At this point, we believe you can qualify for both, but you would need to certify that your disaster loan was used for purposed other than the Paycheck Protection loan.

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