Horizon Community Bank Clients:
HCB is recognized by the U.S. Small Business Administration as a Preferred Lender and actively supports SBA lending in the communities we serve. The bank is dedicated to providing guidance to assist small businesses through the COVID-19 pandemic. Below are information and resource links released by the U.S. Small Business Administration on Economic Injury Disaster Loan (EIDL) to provide working capital funds to small businesses, non-profits and agricultural businesses make it through this challenging time. The applications and funding of the EIDL loans are handled directly from the U.S. Small Business Administration.
The U.S. Small Business Administration announced that the deadline to apply for the Economic Injury Disaster Loan (EIDL) program for the COVID-19 Pandemic disaster declaration is extended to Dec. 31, 2021. The deadline extension comes as a result of the recent bipartisan COVID-19 relief bill passed by Congress and enacted by President Trump on Dec. 27, 2020.
EIDL applications will continue to be accepted through December 2021, pending the availability of funds. Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Every eligible small business and nonprofit is encouraged to evaluate if this an effective financing tool to get the resources it needs. To inquire or apply.
About the U.S. Small Business Administration:
The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

Treasury: Latest COVID-19 Economic Impact Payments Being Processed Tonight
The Internal Revenue Service has begun processing ACH files for the $600-per-person economic impact payments, with a value date of Jan. 4, 2021, the Treasury Department said tonight. ACH files will continue to be sent to banks through Thursday, Dec. 31, Treasury added.
The initial ACH file is expected to include 113 million payments with an estimated value of $112 billion. The IRS will also send 34 million checks and prepaid debit cards amounting to $30 billion. Checks will start to be printed and mailed tomorrow, Dec. 30, at a rate of approximately five to seven million per week and are expected to look the same as the previous round of EIPs in the spring. The checks will be dated Jan. 6, but Treasury has confirmed that it will not return any checks deposited or cashed before that day. Prepaid cards totaling about three million per week will start to be mailed on Monday, Jan. 4.
Bankers should be aware that Treasury Secretary Steven Mnuchin and other official sources have signaled that consumers may have immediate access to their EIPs. “These payments may begin to arrive in some accounts by direct deposit as early as tonight and will continue into next week,” Mnuchin said on Twitter tonight. However, since banks’ practices vary on early access to funds sent by ACH, bank contact centers should be prepared for questions about funds availability.
Meanwhile, the Bureau of the Fiscal Service (which will process the EIPs on behalf of the Treasury Department) and the Federal Reserve will host a free webinar on this second round of EIPs tomorrow, Dec. 30, at 2 p.m. EST. Speakers on the webinar will include Roger Replogle, Cash Product Office manager for the Federal Reserve System, who will discuss the effects of EIPs on banks’ cash management. Each bank is asked to register no more than two representatives. |
If you have any further questions please visit www.irs.gov
Horizon Community Bank does not have the ability to determine whether you qualify. Your eligibility is determined by the government. To learn more about eligibility and payment amounts, visit IRS.gov/coronavirus.

Message for Clients Horizon Community Bank:
To our existing clients – Horizon Community Bank hopes that we have been a valuable resource to you as you have navigated the myriad of programs available through the CARES Act. We assisted nearly 700 clients with $67.5 million with Paycheck Protection Program loans to-date. Our data indicates this effort assisted in the retention of 8,521 local jobs. We were here for you in the past, and we hope you will use us as a resource as we move forward.
General
Yesterday Congress approved an additional $900 billion coronavirus relief package. This is a 5,500-page bill that we expect President Trump to sign into law today. We also expect that this bill will require the SBA, through guidance from the Treasury, to enact policies and procedures to govern how the program works. The initial CARES Act was signed into law on March 27, 2020, banks received interim final rule 1 on April 9, 2020, and the initial Paycheck Protection Program went live on April 10, 2020. At this time, we are not sure when specific guidance will be received, especially given the holiday season, but Horizon Community Bank will be a resource and advocate for our communities and our local businesses. Please stay tuned for additional guidance. We are in this together.
Existing PPP Clients
Horizon Community Bank bankers lobbied both Congress and the various agencies significantly for added reform in the existing PPP programs. It appears that some of this effort will benefit businesses that have already participated in the program. In addition to our active involvement in processing PPP loan applications and funding, we have processed PPP forgiveness applications for approximately 40% of these clients, and last week we were processing an additional 160 new PPP forgiveness applications. We have been a leader throughout this process. We now await further definition from the Treasury on this newest aspect of legislation, but it appears the following modifications or provisions have been added to the new bill –
- Covered business expenses under the initial program will now be allowed as tax deductions.
- A simplified PPP forgiveness application for loans of $150,000 or less. We believe this will be a one-page borrower completed attestation. We encourage borrowers to maintain adequate record keeping supporting use of proceeds in the event of an audit.
- A repeal to the provision that required borrowers to deduct the amount of EIDL advances in calculating forgiveness amounts.
These seem to be the most beneficial modifications impacting existing PPP borrowers. Please consider Horizon Community Bank as your small business resource and partner.
CARES Act 2 PPP Eligibility
Horizon Community Bank has significant experience in past PPP processing. We will be involved in continued support of our business clients as they continue to navigate this environment. We are here, as a resource, for our clients and communities as we continue to weather the Coronavirus epidemic or pandemic with the newest aspects of the CARES Act.
We continue to search resources to get the most up-to-date information. This communication is primarily geared towards qualifying applicants for funding under the most recent CARES Act legislation. This is what we believe to be the most current information –
- Not-for-profit, 501(c ) 6 organizations now qualify for funding, subject to certain restrictions.
- To qualify for an additional loan, the maximum loan size is $2 million and qualifying businesses must employ fewer than 300 employees.
- To qualify, borrowers must be able to show that gross revenue dropped by at least 25% in a 2020 quarter, relative to this same quarter in 2019. Further definition to follow.
Horizon Community Bank strongly supports a localist vision, and we hope you do the same when looking at banking alternatives. We will keep you abreast of further developments as we are made aware.
From all of us at Horizon Community Bank, we wish you a Happy Holiday and a safe and prosperous New Year.