Lubbock National Bank to provide stimulus loans to small busines - FOX34 Lubbock

Lubbock National Bank to provide stimulus loans to small businesses

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LUBBOCK, Texas -

Businesses with fewer than 500 employees affected by the coronavirus can receive financial assistance through Lubbock National Bank

The Payroll Protection Plan is included in the Coronavirus Aid, Relief, and Economic Security Act signed by President Trump Friday. 

"The most important thing is the businesses that need cash flow right now to stay afloat," Lubbock Congressman Jodey Arrington said. 

Under the Payroll Protection Plan, cash flow assistance will be provided to businesses through federally guaranteed loans. Lubbock National Bank Senior Vice President Paul Dannevik said the impact will be far reaching. 

"This is an extremely important piece of legislation, that's going to be good, not only for our community, but communities across the country," Dannevik said. 

Just like the CARES Act, the plan looks to aid businesses through the COVID-19 pandemic. Qualifying businesses will have up to four months of fixed costs paid for by the government, as long as they remain open and don't lay-off employees. 

"They've just got to provide us some financial information that includes information such as your payroll for last year, what your utilities were, rent and what we believe even interest that was paid on any loans last year," Dannevik said. 

Dannevik said loans that are not forgiven will be spread out over 10 years at no more than four percent interest. Congressman Arrington said while the legislation's not perfect, something needed to be passed quickly for relief during this time. 

"The American people are counting on us to come together and get some resources out there in a timely way so we can survive this crisis," he said. 

Businesses don't have to put up any collateral and they do not have to personally guarantee the loan. 

To apply for the Payroll Protection Program click here


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