Notice: The Small Business Administration (SBA) continues to refine its online resources for Coronavirus Relief Options. This page has been updated as of Monday, May 18th, 2020, to bring you the most current and accurate information about these federal economic disaster assistance programs and their requirements. It is provided to our community as a local resource of information available elsewhere on federal government websites and we will strive to keep it as up-to-date as possible pending any additional changes by the federal government.
On this page:
Paycheck Protection Program
List of Cuero-Area Lenders
Economic Injury Disaster Loan and Loan Advance
SBA Express Bridge Loans
Area SBA District Offices
SBA Debt Relief
Paycheck Protection Program
Notice: PPP Resumed April 27, 2020
The SBA resumed accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT.
Loan Information
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Frequently Asked Questions for Lenders and Borrowers (2020-05-13)
For affiliation rules applicable for the Paycheck Protection Program, click here.
The Interim Final Rule for Applicable Affiliation Rules for the Paycheck Protection Program as posted in the Federal Register.
Who Can Apply?
The following entities affected by Coronavirus (COVID-19) may be eligible:
- Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
- Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
- 500 employees, or
- That meets the SBA industry size standard if more than 500
- Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
- Sole proprietors, independent contractors, and self-employed persons
Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.
This loan has a maturity of 2 years and an interest rate of 1%.
If you wish to begin preparing your application, you can download a copy of the PPP borrower application form (see below) to see the information that will be requested from you when you apply with a lender.
Download the PPP Borrower Application (Updated April 27, 2020)
PPP Borrower Application from the SBA website, or
PPP Borrower Application from our website
Descargue la Solicitud del Prestatario para el Programa de Protección de Pago (Actualizado 18 de mayo de 2020)
Muestra de la Solicitud para el Programa de Protección de Pago del sitio web de la SBA, o
Muestra de la Solicitud para el Programa de Protección de Pago de nuestro sitio web
Loan Forgiveness
Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
Learn more about the PPP on the SBA website, here.
List of Cuero-Area Lenders
Note: This information is provided for convenience only and may be amended at any time. Please contact the individual lender for full details about PPP lending availability and terms.
- Cuero National Bank
361-277-3100
Call for more information. - Prosperity Bank
361-564-2291
PPP offered to current members. Call for more information and to request an email packet. - TDECU
Erika Plummer, Member Center Manager
D: 361-580-9748, T: 800-839-1154 ext 9748
eplummer@tdecu.org
PPP offered to current members and non-members. Also offering two months of loan extensions to anyone that has a current loan with them, low interest rates, and assistance loans up to $4,000. Call for more information. - TrustTexas Bank
361-275-2345
PPP offered to current members. Call for more information. - Wells Fargo Bank
PPP offered to current members only with well-established business account in place before February 1, 2020. Visit their PPP info page.
See also:
List of participating PPP lenders by state (as of May 14, 2020)
Find Eligible PPP Lenders
Economic Injury Disaster Loan and Loan Advance
Economic Injury Disaster Loan Emergency Advance
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
Notice: New Eligibility for Economic Injury Disaster Loan and Advance
Overview
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.
SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.
Note: If you would like to check the status of your EIDL application, contact the SBA Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339 or by e-mail at disastercustomerservice@sba.gov. You may also contact the SBA San Antonio District Office for assistance. EIDL Advances will be direct-deposited upon approval without prior notification.
Eligibility
The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
- Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
Eligible agricultural businesses may apply for the Loan Advance here.
SBA Express Bridge Loans
Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loan or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for a decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan.
Terms:
- Up to $25,000
- Fast turnaround
- Will be repaid in full or in part by proceeds from the EIDL loan
Find an Express Bridge Loan Lender by connecting with your local SBA District Office (see also below).
Area SBA District Offices
San Antonio District Office (75.8 miles from Cuero, Texas)
SBA District Office
615 E Houston St. Suite 298
San Antonio, TX 78205
Phone: 210-403-5900
Fax: 210-403-5936
https://www.sba.gov/offices/district/tx/san-antonio
sado.email@sba.gov
Lower Rio Grande Valley District Office – Corpus Christi Branch Office (94.6 miles from Cuero, Texas)
SBA District Office
2820 S. Padre Island Dr. Suite 108
Corpus Christi, TX 78415
Phone: 361-879-0017
Fax: 361-879-0764
https://www.sba.gov/offices/district/tx/harlingen
Houston District Office (113.5 miles from Cuero, Texas)
SBA District Office
8701 S. Gessner Drive Suite 1200
Houston, TX 77074
Phone: 713-773-6500
Fax: 713-773-6550
https://www.sba.gov/offices/district/tx/houston
Houston@sba.gov
SBA Debt Relief
Overview
As part of SBA’s debt relief efforts,
- The SBA will pay 6 months of principal, interest, and fees of current 7(a), 504, and Microloans in regular servicing status.
- The SBA will also pay principal, interest, and fees of new 7(a), 504, and Microloans disbursed prior to September 27, 2020.
This relief is not available for Paycheck Protection Program loans or Economic Injury Disaster loans. Borrowers do not need to apply for this assistance. It will be automatically provided as follows:
- For loans not on deferment, SBA will begin making payments with the next payment due on the loan and will make six monthly payments.
- For loans currently on deferment, SBA will begin making payments with the next payment due after the deferment period has ended, and will make six monthly payments.
- For loans made after March 27, 2020 and fully disbursed prior to September 27, 2020, SBA will begin making payments with the first payment due on the loan and will make six monthly payments.
SBA has notified 7(a), 504 and Microloan Lenders that it will pay these borrower loan payments. Lenders have been instructed to refrain from collecting loan payments from borrowers. If a borrower’s payment was collected after March 27, 2020, lenders were instructed to inform the borrower that they have the option of having the loan payment returned by the lender or applying the loan payment to further reduce the loan balance after SBA’s payment.
Borrowers should contact their lender if they have any questions regarding this payment relief.
Additional Debt Relief
For current SBA Serviced Disaster (Home and Business) Loans: If your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
What does an “automatic deferral” mean to borrowers?
- Interest will continue to accrue on the loan.
- 1201 monthly payment notices will continue to be mailed out which will reflect the loan is deferred and no payment is due.
- The deferment will NOT cancel any established Pre-authorized Debit (PAD) or recurring payments on your loan. Borrowers that have established a PAD through Pay.Gov or an OnLine Bill Pay Service are responsible for canceling these recurring payments. Borrowers that had SBA establish a PAD through Pay.gov will have to contact their SBA servicing office to cancel the PAD.
- Borrowers preferring to continue making regular payments during the deferment period may continue remitting payments during the deferment period. SBA will apply those payments normally as if there was no deferment.
- After this automatic deferment period, borrowers will be required to resume making regular principal and interest payments. Borrowers that cancelled recurring payments will need to reestablish the recurring payment.
If you have questions about your current loan and whether or not your loan is automatically deferred, please contact your Loan Servicing Office directly using the following information:
- Birmingham Disaster Loan Servicing Center:
Phone: 800-736-6048
Email: BirminghamDLSC@sba.gov - El Paso Disaster Loan Servicing Center:
Phone: 800-487-6019
Email: ElPasoDLSC@sba.gov