At Security Federal, the health and financial well-being of our customers, employees, and communities is our top priority. As your financial institution, we are committed to assisting you through any disruptions that may arise as a result of COVID- 19. If you have experienced financial hardship, please reach out to your relationship manager, request an appointment or contact us at 1-803-641-3000 so we can help.
Resources Available at Security Federal Bank:
Fee waivers or deferred loan payment assistance
- Contact your banker or call 1-803-641-3000 to request
Paycheck Protection Program
The Paycheck Protection Program ("PPP") is a program to provide loans to those businesses impacted by COVID-19. The PPP authorized up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis and on April 24, 2020, an additional $320 billion in funding was approved. The PPP application deadline is August 6th by noon.
PPP Loan Forgiveness
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 June 30
- 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
- At least 60% of the loan proceeds must be used for properly documented payroll related purposes.
- The remaining 40% of the proceeds may be used for documented non-payroll related purposes including: Payment of mortgage interest, Rent payments and Utilities.
- Forgiveness Instructions and Applications
- Updated Full Version Forgiveness Application Instructions and Updated Full Version Forgiveness Application Form (for those that don’t qualify for the EZ Application Form).
- EZ Applictions Forms: New PPP Loan EZ Forgiveness Application Instructions and the New EZ Forgiveness Application Form.
We sincerely appreciate the opportunity to assist you with your financial needs and look forward to a continued relationship. If you have any questions related to your PPP loan and the Forgiveness process, please contact your Security Federal Banker with your questions or contact our Customer Service Center at 803-641-3000 and they will connect you with your banker.
Assistance for your Employees – Free Financial Counseling
Security Federal Bank offers free financial counseling for all of your employees. Financial Counselors are available and ready to assist individuals in all of our markets. Counselors can help with a wide variety of personal financial issues such as budgeting, credit score management, debt consolidation, etc. They can also help displaced employees access the available public resources. For further information and to set up an appointment with one of our Counselors, please call our Customer Service Center at (803) 641-3000.
Links to Other Resources
- Disaster Loans
- The U.S. Small Business Administration is offering federal disaster loans for businesses, private non-profits, homeowners and renters. Information about the different programs available can be found at the link below:
- Economic Injury Disaster Loan
- The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses in all 50 states and territories. The loans are for businesses suffering economic injury as a result of the Coronavirus (COVID-19). A few key elements of the loans include:
- Eligible entities may qualify for loans up to $2 million
- Interest rate of 3.75% for small businesses and 2.75% for non-profit organizations
- Long-term repayment options (up to 30 years)
- Religious and Charitable Organizations are not eligible
Additional information can be found at the link below and we encourage you to apply for one of these loans as soon as possible.
Small Business Development Centers
Small Business Development Centers are located throughout South Carolina and Georgia. Representatives are available to help with SBA Disaster Recovery Loan applications or other needs.
South Carolina Centers: https://www.scsbdc.com/
Georgia Centers: https://www.georgiasbdc.org/
South Carolina Departments of Commerce
The South Carolina Department of Commerce, through the Emergency Support Function (ESF) 24, is actively engaged in supporting the business community for impacts of the coronavirus (COVID-19) and is available to answer non-medical questions related to industry support.
The Department of Treasury has released some helpful information for lenders and borrowers, as well as the loan application. You can access that information at https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.
If you are interested in applying for this loan program, we are asking that you please gather the following items:
- Signed SBA Application
- Verification of payroll expenses on or around 2/15/20 (Examples of verification: payroll summary from payroll provider or paycheck stubs
- 2019 W-3 and W-2's
- 2019 payroll report listing employees, gross wages and any pre or post-tax deductions
- 2019 profit and loss statement or 2019 business tax return
- 2019 State Unemployment tax filing
- Businesses opened in 2020: Payroll records from 1/1/20 - 2/29/20
- If applicable: 501©(3) status - evidence of status (original filing from IRS)
For Sole Proprietors, Partnerships and Independent Contractors, we are asking that you please gather the following items:
- Signed SBA Application
- Sole Proprietors: 2019 Schedule C
- Partnerships: 2019 partnership tax return or partner K-1’s
- Verification of self-employed status: 2019 IRS Form 1099-MISC detailing nonemployee compensation received (box 7), invoice or business bank statement
- Documentation to establish you were in operation on or around February 15, 2020, including one of the following: invoice or bank statement
- Copies of 2019 Form W-3’s and W-2’s (if applicable)
If you do not have an existing banking relationship with Security Federal, please provide the following documents in addition to the documents listed above:
- Articles of Organization / Incorporation and Certificate of Existence (if applicable)
- Operating Agreement or By-laws (if applicable)
- Identifying information for the authorized signer and owners with ownership of 20% or greater
- Authorization to do a soft credit pull
Once you have compiled the above information and completed the application, please contact your local Security Federal Bank banker to schedule an appointment to begin the application process or call our Customer Service Center at 803-641-3000.