Paycheck Protection Program Loans

Paycheck Protection Program Loans

About the Paycheck Protection Program

The Paycheck Protection Program, part of the new Coronavirus Aid, Relief and Economic Security (CARES) Act, offers relief to businesses that need assistance due to the economic impact of COVID-19. The program provides low-interest loans to help small businesses cover expenses from February 15 through June 30, 2020. It is administered by the Small Business Administration (SBA) with support from the Department of the Treasury.

Who is Eligible?

Small businesses with 500 or fewer employees – including nonprofits, veterans organizations, tribal concerns, self-employed individuals, sole proprietorships, and independent contractors— are eligible. Businesses with more than 500 employees are eligible in certain industries.

Loan Forgiveness

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). Loan payments will also be deferred for six months; however, interest will continue to accrue over this period. 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.


No collateral or personal guarantees are required, and no fees or prepayment penalties will be charged. Money borrowed from the Paycheck Protection Program will have a 1.00% fixed interest rate and the loan repayment is due in two years. The maximum loan amount is $10 million and the size of the loan is based upon average monthly payroll.

Loan Applications

At this time, the Paycheck Protection Program has reached its funding limit and F&M Trust will no longer accept any new loan applications. If additional funding becomes available, please check back for updates and information on the bank’s participation in the Paycheck Protection Program.

If you have questions regarding your loan request and you are a current F&M Trust commercial loan customer, please reach out to your Relationship Manager or Business Banker. If you do not already have a designated Relationship Manager or Business Banker, please contact your nearest F&M Trust Community Office. A full listing of our Community Offices with contact information is available Here.

Access the SBA's Interim Final Rule for the Paycheck Protection Program Here

Additional information and resources are available at and

Other SBA Relief Programs

EIDL Program

The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands the Small Business Administration’s Economic Injury Disaster Loan Program (EIDL). Through the EIDL Program, the SBA can provide up to $2 million of financial assistance to small businesses or private, nonprofit organizations that suffer economic injury as a result of a declared disaster. These low-interest fixed-rate loans can be used to cover fixed debts, payroll, accounts payable and other bills that can’t be paid due to the disaster’s impact.

While small businesses may apply for both EIDL and Payroll Protection Program loans, they will only be eligible to receive a loan from one program.

You can learn more about the EIDL Program and apply for a disaster loan by visiting the SBA’s Disaster Loan Assistance website. Unlike a typical SBA loan or a Paycheck Protection Program loan, disaster loans are only available through the SBA rather than a bank or other lender.

Whether you are considering EIDL, Payroll Protection Program loans or other financing, F&M Trust stands ready to help you navigate this process. Please contact us if you have questions or need additional information.


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