COVID-19 Business Resources
All businesses plan and prepare for tough times on their way to sustained success, but our current circumstances simply could not be anticipated. The combination of public health considerations, operational restrictions and the resulting economic impacts have resulted in nearly every business in the country scrambling to find its footing. Our small businesses are the backbone of northern Michigan and 4Front remains committed to ensuring they not only survive current challenges, but emerge stronger than ever.
Help Is Here | We've got options to ensure you weather this storm
If you're unsure about making ends meet, please reach out to us right now. We've identified a variety of options to help both member businesses and non-member businesses handle any challenges headed their way. To expedite requests for assistance, we're offering the form below. Completed forms are directed to a team dedicated to identifying ways we can assist our impacted members.
The CARES Act | Relief for businesses impacted by the Coronavirus
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was recently signed into law. The CARES Act includes a variety of resources for small businesses impacted by the Coronavirus. For an overview of the Act, visit the Guide to the CARES Act, offered by the Senate Committee on Small Business & Entrepreneurship.
The CARES Act is comprised of programs and products intended to aid small business during these difficult times. Several of the initiatives with the CARES Act are administered from the Small Business Administration (SBA) and are highlighted below.
Please note that, due to the dynamic nature of this program, the below resources are provided to the best of our ability. We are unable to guarantee accuracy and encourage you to contact our Business Services team at 231.932.5225 to confirm details.
Paycheck Protection Program
UPDATE: Monday, June 8 - 1pm ET
The Paycheck Protection Program (PPP) Flexibility Act was was approved in bi-partisan fashion and signed into law by the President. As a result, the Small Business Administration (SBA), in consultation with the U.S. Department of Treasury, will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP. These modifications will implement the following important changes:
- Extend the covered period for loan forgiveness from eight weeks after the date of loan disbursement to 24 weeks after the date of loan disbursement, providing substantially greater flexibility for borrowers to qualify for loan forgiveness. Borrowers who have already received PPP loans retain the option to use an eight-week covered period.
- Lower the requirements that 75 percent of a borrower’s loan proceeds must be used for payroll costs and that 75 percent of the loan forgiveness amount must have been spent on payroll costs during the 24-week loan forgiveness covered period to 60 percent for each of these requirements. If a borrower uses less than 60 percent of the loan amount for payroll costs during the forgiveness covered period, the borrower will continue to be eligible for partial loan forgiveness, subject to at least 60 percent of the loan forgiveness amount having been used for payroll costs.
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees for borrowers that are unable to return to the same level of business activity the business was operating at before February 15, 2020, due to compliance with requirements or guidance issued between March 1, 2020 and December 31, 2020 by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration, related to worker or customer safety requirements related to COVID–19.
- Provide a safe harbor from reductions in loan forgiveness based on reductions in full-time equivalent employees, to provide protections for borrowers that are both unable to rehire individuals who were employees of the borrower on February 15, 2020, and unable to hire similarly qualified employees for unfilled positions by December 31, 2020.
- Increase to five years the maturity of PPP loans that are approved by SBA (based on the date SBA assigns a loan number) on or after June 5, 2020.
- Extend the deferral period for borrower payments of principal, interest, and fees on PPP loans to the date that SBA remits the borrower’s loan forgiveness amount to the lender (or, if the borrower does not apply for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period).
- In addition, the new rules will confirm that June 30, 2020, remains the last date on which a PPP loan application can be approved.
Program Overview. The Paycheck Protection Program (PPP) provides small businesses with funds to pay up to eight (8) weeks of payroll costs, including benefits. Funds may also be used to pay interest on mortgages, rent, and utilities. The PPP authorizes forgivable loans to small businesses to pay their employees during the COVID-19 crisis. Click HERE for more information.
Eligibility. Eligibility for PPP is limited to small businesses with 500 or fewer employees—including non-profits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors. Businesses with more than 500 employees are eligible in certain industries.
Amount Available. Up to $10 million, or 2.5 times your total payroll expenses for the loan period.
Rate & Terms. The initial rate is 1 percent, but it may rise. It's capped at 4 percent. Loan terms will be the same for all borrowers and forgivable.
Application. Application may be through existing SBA lenders, like 4Front. Contact our Businesses Services team at 231.932.5225. June 30, 2020, is the last date on which a PPP loan application can be approved.
Economic Injury Disaster Loans (EIDL)
UPDATE: Monday, June 15
The SBA has reopened the EIDL and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19. To confirm eligibility and apply, click HERE.
Program Overview. Economic Injury Disaster Loans (EIDL) provide small businesses with working capital loans that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Small businesses and non-profits harmed by COVID-19 are eligible to apply for an Economic Injury Disaster Loan emergency advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Eligibility. Small business owners in all U.S. states, Washington DC, and territories. Economic Injury Disaster Loans are also available to residents in declared disaster areas. Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to Coronavirus (COVID-19).
Amount Available. Up to $2 million. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
Rate & Terms. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. To keep payments affordable for small businesses, the SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.
Application. Apply online, directly with the SBA.
Small Business Debt Relief Program
The Small Business Debt Relief Program will cover all loan payments on all non-disaster SBA loans, in particular 7(a), 504 and microloans. Relief includes principal, interest and fees for six months. Under the SBA's Small Business Debt Relief Program:
- The SBA will also pay the principal and interest of new 7(a), 504 loans and microloans issued prior to September 27, 2020.
- The SBA will pay the principal and interest of current 7(a), 504 loans and microloans for a period of six months.
4Front SBA borrowers who have questions about their current loan and if your loan is automatically deferred are asked to contact our Businesses Services team at 231.932.5225.Go to main navigation