JobsOhio, Peoples Bank and First Federal/Home Savings Bank announced a partnership to support existing small business clients with maintaining operations and payroll during the COVID-19 pandemic. JobsOhio has committed up to $50 million to assist Peoples Bank and recently merged First Federal Bank and Home Savings Bank. The program provides additional financing on favorable terms for local Ohio business customers in good standing that would otherwise not be able to access this credit on such terms due to the COVID-19 crisis.
What employers are eligible?
- Ohio-based businesses that are current bank customers and are in good standing.
What are the loan terms?
- Maximum of $200,000 loan,
- If a current borrower, the loan has to be an amount not to exceed the lower of 20% of total existing commitments or maximum of additional $200,000,
- Deposit only customers with no current loans, amount is lesser of 10% of aggregate annual revenue from sales (most recent 12 month period) or $100,000,
- Variable rate loan at prime rate (currently 3.25%),
- No origination fees,
- 35-month term – 6 months interest only, then 29 principal and interest using 60-month amortization (First Federal/Home Savings only)
- Standard approval process, collateral and other terms apply (First Federal/Home Savings),
- 66-month term with interest only payments for the first 6 months, unsecured loan (Peoples only).
How can an eligible business use the loan proceeds?
- Eligible businesses can use the newly available loan funds for working capital, including payroll, rent, mortgages or other fixed debts, utilities and other bills.
Please note that businesses can still receive the above loan if they have received a small business Paycheck Protection Program loan. Loan proceeds may not be used for the same expenses.
Do you want to discuss your options during the COVID-19 crisis? If so, please comment below, contact Kari Brooke at (513) 675-0848 or firstname.lastname@example.org to discuss how we can help you.