The loan terms are as follows:
- Loan Amount:
- For small businesses: Lesser of (a) $100,000 or (b) up to 100% of average monthly revenues in a 3-month period prior to the COVID-19 outbreak. The 3-month period can be any 3-month period from 2019 or January to March 2020.
- For Example:
- October 2019 Revenues: $10,000
- November 2019 Revenues: $15,000
- December 2019 Revenues: $30,000
- Average Revenues: $18,333
- 3-months of Average Revenues: $55,000
- Maximum loan size is $55,000
- If the maximum loan size is greater than $100,000, the maximum loan size will be $100,000
- Interest Rate:
- For small businesses, the fixed annual interest rate will be 3%.
- Repayment:
- For months 1 – 12: Interest only payments, paid monthly.
- For months 13 – 60: interest and principal payments, paid monthly.
- Term:
- Proceeds:
- Proceeds are required to be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, etc.
- Refinancing of an existing loan is not permitted.
- The loan applicant will be required to detail anticipated use of funds when they apply.
- Borrower Fees:
- No application fees. Late fee will be assessed for missed payments.
- Recourse:
- No collateral is required.
- Prepayment:
- Borrower may prepay the loan without penalty.