Banner SBA CARES Loan Program 

What are the terms and conditions of the PPP loan?

The interest rate of this loan is 1%. There are no fees or costs with this loan and no personal guarantees or collateral are required. For loans approved on or after June 5, 2020, the amortization schedule is five years. For loans approved prior to this date, the amortization schedule is two years unless mutually agreed by the borrower and Banner Bank.

Can I apply funds from a PPP loan for any aspect of my business?

No. The SBA requires at least 60% of the loan to be used toward payroll expenses as one of the conditions to qualify for full forgiveness. Up to 40 percent of the loan may be used for eligible non-payroll expenses such as business rent, mortgage interest and utilities.

Can I get both an Economic Injury Disaster Loan (EIDL) and a PPP loan?

Yes. You can obtain both an Economic Injury Disaster Loan (EIDL) and a PPP loan. EIDL loans are applied for directly through the SBA, not through us or other financial institutions.

Can I use an EIDL loan to cover the same expenses as a PPP loan?

EIDL loans used for the same purpose, if received, will need to be refinanced into the PPP. You’ll want to use any PPP loan funds you receive as intended, and use proceeds from the EIDL for other expenses not covered by the PPP loan to maximize your opportunity for debt forgiveness.

What happens if I already have an SBA loan?

• The SBA will automatically make principal, interest and fee payments on behalf of all current 7a, 504 and microloans for a period of 6 months. The SBA will also automatically pay the principal, interest and fees of new 7a, 504 and microloans originated prior to September 27, 2020. For SBA loans obtained through Banner Bank, we will discontinue automatic ACH payment processing during this timeframe.
• Any loan payments made after March 27, 2020, can either be returned or applied to the loan balance.

What if my business has been sold or had a change in ownership since I applied for a PPP loan?

The SBA has issued guidance for business owners who may have sold their business or had a change in ownership since they applied for a PPP loan. Please review guidance from the SBA.