Banks in Okawville are prepared to help keep the local economy moving during the Coronavirus pandemic following the passage of the CARES Act.
The Old Exchange National Bank and the First National Bank of Okawville are filing with the Small Business Association to be a lender of choice to help local businesses weather the pandemic shutdown.
“We’re doing the right thing for our customers and our community,” said Dale Brockmann, president of The Old Exchange National Bank. “The idea is to provide money so that small businesses can keep workers on the payroll.”
Both The Old Exchange and First National Bank are working to become approved to lend funds to help cover payroll, benefits, utilities and other expenses for businesses with up to 500 employees.
“There is a lot of paperwork we have to do before we can start lending the money, but we’re hoping we can be ready for our customers by the end of this week,” said Adam Luechtefeld of First National Bank.
Employers can apply for a loan based upon an average of monthly payroll costs over the last year. The loan amount can be for as much as two-and-a-half times that one-month’s average cost.
In addition, after a period of time, the borrower can apply to have all or part of the principal amount forgiven. Payments would be deferred for up to six month, and all that would be owed would be the interest on the loan. The interest rate is set at one percent.
Brockmann advises that borrowers would have to demonstrate that the money received was used to cover payroll costs in order for the principal to be forgiven.
For more information on the loan program, contact Old Exchange National Bank at 243-5234 and First National Bank in Okawville at 243-5291.