By Mike Kruzman / news@whmi.com


With another round of funding for small business loans expected to be passed tomorrow, a local lending official is urging those interested to do what they can to prepare.

A $483-billion package that includes more than $300-billion in funding for small businesses has been approved by the U.S. Senate and is expected to pass the House Thursday. March’s federal CARES Act initially provided $349-billion for small businesses in the form of payroll protection, but that pool was quickly depleted, leaving many businesses without needed help. Lake Trust Credit Union Vice President of Lending Andrea Mosher says one benefit she sees to the new funding package is that this time $60-billion will be carved out for lenders with less than $10-billion in assets. Mosher said this applies to most credit unions and small community banks, which also happen to be the institutions that many “main street” or small businesses use.

Mosher is encouraging local businesses looking to take advantage of round 2 to act quickly, but thoroughly. She says to talk with your trusted advisor, whether it’s your CPA or attorney, and have them help you gather the data the lending institutions need to submit the package for approval. This includes payroll records. Mosher also encourages business owners to use the U.S. Treasury’s website for a better understanding of what they need to provide. She said the more complete the information they get upfront is, the more quickly they can get you through the process. She says if it’s not complete, it will come back and put the business-owner behind others they were in front of, previously.

Mosher notes that at the end of June, there will be a process borrowers will have to go through with their lender. If the borrower can show they spent 75% of the dollars they received to pay salaries and keep people employed, the money is forgiven. Falling below that number turns it into a loan, as the intent of the package is to keep people working. As for the turnaround between being accepted and receiving the aid, Mosher says institutions must provide the funding within 10 days of approval.