York Traditions Bank is now Traditions Bank!
We’re still here to help you make your mark in the world. We’re simply changing our look to better reflect the way we do business and to better serve all of our customers, online and in person.
Has your organization been affected by Coronavirus?
Doing your part to keep your employees, customers, and leadership healthy during the Coronavirus crisis has required great sacrifice for many businesses and organizations. If your business has been financially impacted by COVID-19, there are a number of federal loan options available which may offer relief.
Traditions Bank realizes that this is an especially stressful time for business owners as you maneuver the overwhelming and constantly changing information available about the loan types. Your Business Services Partner can help you navigate this process and offer expert advice so that you can choose the right option for your organization and situation.
Important note: Please continue to be cautious of COVID-19 scams. We urge you not to respond to unsolicited communications or share information about your loan with businesses or individuals which are not affiliated with your bank.
Paycheck Protection Program
Economic Injury Disaster
YoCo Strong Restart
Main Street Lending Program
Paycheck Protection Program
The background of the Paycheck Protection Program Loan Guarantee
Part of the SBA 7(a) program, the Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing funds toward job retention and certain other expenses. The initial application period for this program ended on August 8, 2020; however, Congress voted to re-fund this program in January 2021.
Traditions Bank is now accepting applications from current customers and non-customers who are interested in establishing an ongoing banking relationship.
For Second Draw PPP Borrowers
The Paycheck Protection Program (PPP) now allows certain eligible borrowers that previously received a PPP loan to apply for a Second Draw PPP Loan with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Please make sure that your application is FULLY COMPLETED. Due to high volume, packets that are missing information will be returned to the applicant for resubmission.
Second Draw App for Schedule C
Please refer to the SBA’s frequently asked questions as of January 19, 2021.
Note: Regarding Question 7 on page 4 of the FAQ document, Traditions Bank requires borrowers of $150,000 or less to provide documentation substantiating the reduction in gross receipts at the time of application for internal approval prior to submitting to the SBA.
For Businesses who did not previously receive a PPP loan
SBA is reopening the Paycheck Protection Program (PPP) for First Draw Loans the week of January 11, 2021. First Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Please make sure that your application is FULLY COMPLETED. Due to high volume, packets that are missing information will be returned to the applicant for resubmission.
First Time Borrower Application
We recommend that you continue to check the SBA and US Department of Treasury websites for the most recent information as the guidance on these programs continues to be released.
Paycheck Protection Program Loan Forgiveness Details
If you have a loan through the Paycheck Protection Program, forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. The loan forgiveness form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the 24-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by December 31
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
Did you obtain a PPP loan through Traditions Bank? Are ready to submit your application for forgiveness?
We are pleased to inform you that we are now accepting PPP Forgiveness Applications through an online software portal hosted by Vikar Technologies.
You should have received a letter through U.S. mail and an email with important information with login instructions. If you cannot locate this information, please contact us at YTBPPP@yorktraditionsbank.com or call the PPP team at 717-801-4398.
Questions?
If you have questions about the Paycheck Protection Program, please contact us at YTBPPP@yorktraditionsbank.com or call the PPP team at 717-801-4398.
Economic Injury Disaster
Economic Injury Disaster Loan Assistance Program
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid.
SBA has resumed processing EIDL applications that were submitted before the portal stopped accepting new applications on April 15 and will be processing these applications on a first-come, first-served basis. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.
The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic.
- Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
- SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.
At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.
Eligible agricultural businesses may apply for the Loan Advance here.
YoCo Strong Restart
YoCo Strong Restart Fund
The YoCo Strong Restart Fund was created after the York County Commissioners voted to allocate a portion of the $40.5 million in Coronavirus Aid, Relief and Economic Security (CARES) Act funding to support a small business and nonprofit organization grant program. The YoCo Strong Restart Fund will be administered through a partnership with the York County Economic Alliance and Community First Fund.
The County has dedicated $10 million for small business support, and $4 million for nonprofit support. Grants amounts will range from $10,000 to $35,000 to eligible organizations negatively impacted by the COVID-19 pandemic.
More information about YoCo Restart can be found here.
Main Street Lending Program
The Federal Reserve Main Street Lending Program
Traditions Bank is a participant in the Main Street Lending Program’s New Loan Facility.
The MSLP is designed to help credit flow to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 crisis, but now need loans to help maintain their operations until they have recovered from, or adapted to, the impacts of the pandemic.
Loans originated under the program have several features that will help businesses facing challenges. The program offers 5-year loans, with floating rates, and principal and interest payments deferred (as indicated in the details listed below) to assist businesses facing temporary cash flow interruptions.
There are a wide range of loan amounts that may support a broad set of employers.
Source: https://www.bostonfed.org/supervision-and-regulation/supervision/special-facilities/main-street-lending-program/main-street-lending-program-overview.aspx
MSLP New Loan Facility Details
Eligible Borrowers: Businesses established before March 13, 2020 that are eligible according to the terms of the Main Street Lending Program. Click here for the Term Sheet and see details under Eligible Borrowers.
Minimum Loan Amount: $250,000
Maximum Loan Amount: The lesser of $35 million OR 4 times the business’ 2019 EBITDA (includes all of the borrower’s existing and proposed debt)
Loan Term: 5 Years
Repayment Schedule:
- Year 1: No principal or interest payments
- Year 2: Interest-only payments due (year 1 Interest is capitalized)
- Year 3: 15% of Principal + Interest due
- Year 4: 15% of Principal + Interest due
- Year 5: The remaining 70% of Principal + Interest due
Interest Rate: Floating at 1M LIBOR + 3%
Collateral: Negotiated
Fees: Up to 2% of the loan amount. 1% is passed on to a Federal Reserve Bank’s Special Purpose Vehicle (SPV) which will purchase 95% of the loan
How to Apply
Contact Mike Huson, Managing Director of Business Services, to discuss if the MSLP is right for your business.