The COVID-19 pandemic has impacted each of us in an unprecedented way and we want to help your business receive vital funds needed. Learn more about the Disaster Relief and SBA Loan options available to you below.

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Small Business Administration Programs
  Paycheck Protection Program Loan
Subject to guidance from the SBA
www.sba.gov/funding-programs/loans/paycheck-protection-program
Small Business Administration (SBA)
Economic Injury Disaster Loans (EIDL)
www.disasterassistance.gov
Farmers & Merchants Bank
Disaster Assistance
Loan Guarantee Program
(State Guarantee)
ibank.ca.gov/small-business-finance-center/
Who is eligible? Small businesses with no more than 500 employees or meet the applicable size standard as defined by the SBA suffering economic injury as a result of the Coronavirus (COVID-19).

A 501(c)(3) nonprofit organization (including religious organizations), a 501(c)(19) veterans organization or tribal business concern described in section 31(b)(2)(C) that has less than 500 employees.
Small businesses with no more than 500 employees or meet the applicable size standard as defined by the SBA suffering economic injury as a result of the Coronavirus (COVID-19).

A non-profit with an effective ruling letter from the IRS, granting tax exemption under sections 501(c), (d), or (e) of the IRS Code.

Religious organizations are ineligible.
Small businesses with no more than 750 employees suffering economic injury as a result of the Coronavirus (COVID-19).

Most non-profits are eligible, some Religious and Charitable Organizations may be excluded.
What is the maximum loan amount?
  • Loans up to $10,000,000.
  • Loan amounts cannot exceed 2.5x average monthly payroll costs during the 1-year period before the date on which the loan is made (compensation per employee above $100,000 excluded).
  • Loans up to $2,000,000.
  • The loan amount cannot exceed 50% of annual gross profits.
  • Loans up to $1,250,000.
  • Loan amounts will be based on economic injury and financial needs of borrower.
What is the interest rate and fees?
  • Fixed at 1.00%.
  • No application or origination fees.
  • 3.75% fixed interest rate on loans to for-profit companies.
  • 2.75% fixed interest rate on loans to non-profits.
  • No application or origination fees.
  • 4.25% fixed interest rate.
  • Loan costs include 2.50% guarantee fee and $500 documentation fee.
What are the eligible uses of funds?
  • These loans may be used to cover the costs of the following expenses incurred between February 15 and June 30, 2020:
    • Payroll/Employee Benefits
    • Interest on Mortgages
    • Rent payments
    • Qualified Utility payments
  • Loan proceeds can be used for any regular operating expense including short term debt obligations, payroll, accounts payable and other bills that can’t be paid due to business interruption caused by COVID-19. Borrower must maintain records for use of loan funds for three years.
  • Loan proceeds can be used to recover from significant economic injury including payroll, accounts payable and other bills that can’t be paid due to business interruption caused by COVID-19.
What are the loan provisions?
  • No prepayment penalty.
  • Payments of principal and interest will be deferred for 6 months
  • Maximum 2-year maturity after application for loan forgiveness.
  • No collateral or personal guarantee required.
  • No prepayment penalty.
  • Loans will have 12-months of deferred payments with 30-year term.
  • The SBA will look to take any available collateral on all loans over $25,000.
  • Personal guarantee required for any owner of 20% or greater.
  • Loans of $200,000 or less will not require a personal guarantee.
  • No prepayment penalty.
  • Each loan will have a repayment schedule consistent with the borrower’s needs and ability to repay.
  • Loan amortization schedules of up to 7 years.
  • The Bank will look to take available collateral on all loans.
  • Personal guarantee required for any owner of 20% or greater.
How do I apply? Visit our Paycheck Protection Program webpage to learn more and how to apply. Apply ONLINE ONLY directly through the SBA at disasterloan.sba.gov/ela/ Contact F&M Bank’s Specialized Lending Group by e-mail at slg@fmb.com
Anything else I should know?
  • All loan terms will be the same for everyone.
  • The loan amounts will be forgiven as long as:
    • The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
    • Employee and compensation levels are maintained.
  • You will need to provide your lender with payroll documentation and other documentation required as deemed necessary.
  • Payroll costs include:
    • Salary, wages, commissions, or tips;
    • Employee benefits including costs for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payments required for the provisions of group health care benefits including insurance premiums; and payment of any retirement benefit;
    • State and local taxes assessed on compensation; and
    • For a sole proprietor or independent contractor: wages, commissions, income, or net earnings from self-employment, capped at $100,000 on an annualized basis for each employee.
  • You will owe money when your loan is due if you use the loan amount for anything other than payroll costs, mortgage interest, rent, and utilities payments over the 8 weeks after getting the loan
  • Due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs. You will also owe money if you do not maintain your staff and payroll.
    • Your loan forgiveness will be reduced if you decrease your full-time employee headcount.
    • Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employees that made less than $100,000 annualized in 2019.
    • You have until June 30, 2020 to restore your full-time employment and salary levels for any changes made between February 15, 2020 and April 26, 2020.
  • You can submit a request to the lender that is servicing the loan. The request will include documents that verify the number of full-time equivalent employees and pay rates, as well as the payments on eligible mortgage, lease, and utility obligations. You must certify that the documents are true and that you use the forgiveness amount to keep employees and make eligible mortgage interest, rent, and utility payments. The lender must make a decision on the forgiveness within 60 days
Due to high demand, we recommend applying during off-peak hours (10pm – 7am)

Applicants may receive a $10,000 emergency advance within 3 days after applying for an EIDL loan. If the application is denied, the applicant is not required to repay the $10,000 advance. Emergency advance funds can be used for authorized expenses outlined as part of the EIDL Loan Program.

When applying, be prepared to supply the following information to process the application:
  • Explanation of economic injury being sustained as a result of COVID-19 with any supporting documentation
  • Company information including entity documentation and Taxpayer ID number.
  • Complete copies of the most recent federal income tax return
  • Profit and loss statements
  • Two years of personal tax returns for each individual owning 20% or greater.
When you apply, please include the following:

  • Loan Amount Requested
  • Written letter identifying economic injury being sustained as a result of COVID-19 with any supporting documentation.
  • Two years of business federal tax returns.
  • Two years of personal tax returns for each individual owning 20% or greater.
  • Personal Financial Statement (form provided upon request).
NOTES:
  1. An applicant may receive an EIDL Loan and loans under other programs (such as the Paycheck Protection Program) as long as the basis for the loans/costs being paid with each are different (no “double-dipping”).
  2. For the most up-to-date information about each program, please visit the website links at the top of the page.

Please understand PPP Program funds are limited and F&M Bank cannot guarantee that applications will be processed and submitted before funding is no longer available. Submitting an application is neither a commitment nor an offer to lend by the Bank at this time, and is subject to the availability of PPP funds.