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COVID-19 Small Business Resource Center

 
 

COVID-19 Small Business Resource Center

Guidance and support

We’re taking extra measures to help businesses navigate this challenging time. Below, you’ll find information on how the bank can assist you, in addition to government-funded support. We’re working diligently to track and review programs available to help you, and we'll continue to update this page with the latest information.



Loan deferment program on qualified Camden National Bank loans
 


Flexibility for higher limits related to remote deposit capture


Ready to assist with SBA and FAME loan relief programs

For additional information about any of these programs and how you can get support, please reach out to your commercial banker, local banking center, or our Customer Care Team, available 24/7 at 800-860-8821.


Government-funded relief programs

COVID-19 related relief is presently available from the Federal government through the Small Business Administration (SBA). In the State of Maine, additional COVID-19 related relief is also available through the Finance Authority of Maine (FAME).

SBA's Economic Injury Disaster Loan Program (EIDL)
Available now - apply through the SBA

This program is administered through the SBA to provide small businesses (including agricultural businesses and cooperatives) and most private, non-profit organizations with working capital loans of up to $2 million to help overcome a temporary loss of revenue. Although EIDL loans are estimated to take 4 to 6 weeks from application for processing, approval, and initial funding, all applicants will receive a loan advance of $10,000, made available within three days of a successful application. This loan advance will not have to be repaid to the SBA.

In the interim, Maine businesses can also apply for:

FAME's COVID-19 Relief Interim SBA Finance Loan Program
Provides FAME Direct Loans of up to $100,000 with special terms available to eligible borrowers who provide proof of commitment for SBA financing. The FAME loan would be originated for use to the business owner until the SBA loan is funded. The SBA loan would then pay off the FAME loan. Learn more.

PPP vs. EIDL infographic
Paycheck Protection Program (PPP)

Please note: Submit completed PPP application materials no later than Thursday, August 6, 2020 so our teams can process and submit the application to the SBA in time for the August 8th program deadline. Incomplete applications or applications submitted to us after 8/6 may not be processed in time, and anything submitted after 5pm on Friday 8/7 will not be processed.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020 to provide additional relief for individuals and businesses. Funding was established to create a new SBA program called the  Paycheck Protection Program (PPP), providing small businesses (less than 500 employees) with loans up to $10 million to help fund payroll costs, including benefits, interest on mortgages, rent, and utilities.

PPP funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities. Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor Camden National Bank will charge small businesses any fees.

On June 5, 2020, the PPP Flexibility Act was signed into law. We expect further clarification and guidance from the SBA, but a summary of key changes includes:

  • Extended forgiveness period. The forgiveness period for all PPP loans has been extended to 24 weeks from the date of origination, meaning borrowers have more time to use PPP funds (but in no event later than 12/31/2020).
  • Modified expense requirements. To qualify for forgiveness, the amount borrowers must devote to maintaining payroll has moved from 75% to 60% of their PPP loan. This means that 40% of the loan may be spent on mortgage interest, rent, and utilities.
  • Extended employee rehiring deadline. In order to receive forgiveness, the required employee rehiring deadline has moved to December 31, 2020.
  • Extended allowable maturity period. With approval from the lender on a case-by-case basis, unforgiven PPP loans may now have a maturity period of up to five years.

In order to understand these changes and the potential impact for your business, we recommend that you carefully review all rules, regulations, and written guidance from the Small Business Administration (SBA) with the assistance of your legal, tax, and other advisors.


How the PPP process works:

PPP provess infographic
PPP provess infographic
More on PPP loan forgiveness

Up to 100% of your PPP loan is eligible for forgiveness, meaning that you don’t have to repay it, if you meet the conditions required by the SBA. The amount of forgiveness is based on the amount of loan proceeds that you use to cover eligible payroll costs, utilities, rent, and mortgage interest obligations over the 24-week period after the first loan disbursement is made (referred to as the “covered period”).

PPP loans that are not forgiven may have a maturity day of up to five-years and are subject to a 1% interest rate. All loan payments are deferred for six months following the date of disbursement.

Keep in mind


 

Review SBA materials and save documentation:
At this time, we encourage you to review the SBA’s website (including the loan forgiveness form and instructions, as well as FAQs) so you’re up-to-date on the latest eligibility and documentation requirements. It’s important to continue tracking your payroll costs, plus utilities, rent, and mortgage interest obligations for the covered period, as outlined by the SBA.


 

Applying for forgiveness:
Information from the SBA regarding PPP loan forgiveness is still evolving. Our goal is to make your experience as streamlined as possible, so while we await clear guidance on the process, we are not presently accepting applications for forgiveness. Please remember, we’ll be inviting our PPP borrowers via email to apply for forgiveness electronically. With the help of your business banker, this should make the process much smoother and more efficient.

Additional resources:

Please note: The information contained above is merely a summary and you should carefully review all rules, regulations, and written guidance from the SBA (available at www.sba.gov) with the assistance of your legal, tax, and other advisors.

Information is subject to change. Paycheck Protection Program (PPP) loans funded by Camden National Bank are subject to approval by the Small Business Administration, and are required to meet program and other eligibility guidelines. Certain restrictions apply to refinancing options and are subject to program terms. Refinancing existing SBA loans are excluded with the exception of permitted refinancings of Emergency Injury Disaster Loans. Maximum loan amounts and terms are determined by SBA guidelines regarding borrower qualifications and the use of funds. Camden National Bank and its representatives do not provide legal or tax advice. Consult an advisor regarding any legal or tax consequences related to a PPP loan.
Modifications to existing SBA loans
Available now - Contact us to learn more

The SBA has approved of modifications to their existing programs. If you're a current borrower and want to learn more about the options available to you, please contact the loan officer you worked with in obtaining the original loan.

FAME's COVID-19 Relief Business Direct Loan Program
Available now - Learn more

Provides FAME Direct Loans of up to $50,000 with special terms available to Maine-based businesses experiencing interruption or hardship due to COVID-19.

FAME's COVID-19 Relief Lender Insurance Program
Available now for qualified Maine borrowers - Contact us to learn more

This program provides commercial loan insurance of 50-75% to lenders who make loans to Maine businesses experiencing interruption or hardship due to COVID-19.

Helpful tips:

  • Be sure to gather your financial information and entity documents so you have these items on hand when you’re ready to submit.
  • If you file joint tax returns, you will need to provide a joint personal financial statement. Both parties will need to sign and date the form.
  • Sign and date the first page and provide all pages of required documents (tax returns, financial statements and forms).
  • Provide all of the information as requested to streamline the application process.

Information is subject to change. Loans issued by Camden National Bank may be subject to approval by the Small Business Administration, and may be required to meet program and other eligibility guidelines. Certain restrictions apply to refinancing options and are subject to program terms. Refinances of existing SBA loans are excluded. Financing maximums and terms are determined by borrower qualifications and use of funds. Camden National Bank and its representatives do not provide tax advice. Consult an advisor regarding a particular financial situation. Credit products are offered by Camden National Bank.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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