SBA / COVID-19 Financing Options

SBA (7a) Paycheck Protection Program

As this program is administered through existing SBA 7(a) lenders, we are pleased to inform you that Quicksilver Capital has coordinated with a trusted Community Bank and an SBA Preferred Lender to facilitate the application process for our valued merchants.

Loan Overview

• The PPP provides small businesses with funds to pay up to 8 weeks of payroll costs, costs related to group health care benefits during periods of paid sick, medical or family leave, and insurance premiums. The funds can also be used to pay interest on mortgages, rent and utilities and interest on payments on any other debt obligations that were incurred before February 15, 2020.
• A business can apply for a loan of 2.5x average monthly payroll costs up to $10 million

1. Term: 2 years
2. Interest Rate: 1.0%
3. Loan payments will be deferred for 6 months from the date of disbursement of the loan (with potential for deferment of up to 1 year); however, interest will continue to accrue during that 6 month period
4. No personal guarantee or collateral is required
5. Neither the government nor lenders will charge any fees
6. An eligible business must apply before June 30, 2020
7. A business is eligible to apply even if the small business is applying for other relief programs
8. No prepayment penalties or fees
9. A business is only eligible to receive one PPP loan, so a business should consider applying for the maximum amount

A7(a) loan forgiveness:

The loan can be forgiven up to the full principal amount of the loan and any accrued interest if the borrower uses all the loan proceeds for forgivable purposes and employees and compensation levels are maintained

• The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan; however, not more than 25% of the loan forgiveness amount may be attributable to non-payroll costs
• Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). 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
• Loan forgiveness may be reduced if:

1. Number of Staff: Your loan forgiveness will be reduced if you decrease your full-time employee headcount
2. Level of Payroll: Your loan forgiveness will also be reduced if you decrease salaries and wages by more than 25% for any employee that made less than $100,000 annualized in 2019
3. Re-Hiring: 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