COVID-19 Business Resources
Bar Harbor Bank & Trust has helped our customers navigate many financial crisis and economic downturns over the last 133 years. We are committed to working with all of our customers to help them navigate through the COVID-19 crisis. If you are experiencing financial difficulties due to COVID-19, we want to help. Some of the programs and options available are provided here.
As a business customer or business owner, you may be wondering what your relief options are. We encourage you to connect with your Commercial Lender. They can discuss the different options, including government-sponsored SBA programs, and develop a solution specifically for your needs. If you don’t currently have a loan relationship with us, please contact your local branch and they will connect you with a lender who can help you. Good things happen when we work together.
SBA Government Programs
Paycheck Protection Program (PPP)
Please be advised, effective August 8, 2020, the Paycheck Protection Program ended - PPP loans are no longer available. If you have questions or are in need of financial assistance, please contact a member of our Commercial Banking team.
Loan Forgiveness Overview
Up to 100% of your loan amount may be forgivable if you use the proceeds for these purposes:
- Eligible payroll costs incurred or paid during the Covered Period or the Alternative Payroll Covered Period.
- Business mortgage interest payments paid or incurred during the Covered Period for any business mortgage obligation on real or personal property incurred before February 15, 2020.
- Business rent or lease payments paid or incurred for real or personal property during the Covered Period, pursuant to lease agreements in force before February 15, 2020.
- Business utility payments paid or incurred during the covered Period, for business utilities for which service began before February 15, 2020.
Eligible non-payroll costs cannot exceed 40% of the total forgiveness amount.
On June 5, 2020, President Trump signed the Paycheck Protection Program Flexibility Act. This legislation included two changes which are important to you:
- It extended the length of the Covered Period (the time period during which you must use your PPP funds) from eight to 24 weeks, and
It extended the payment deferral period from six months to the date on which the SBA remits your loan forgiveness amount to the bank.
The SBA began accepting loan forgiveness applications on August 10, 2020 and began approving forgiveness applications on October 7, 2020. If you have not yet applied for forgiveness, we encourage you to do so as soon as possible.
There are three different Loan Forgiveness Applications, each with their own set of instructions:
- SBA Form 3508S and Instructions (for loans $50,000 or less)
- SBA Form 3508EZ and Instructions
- SBA Form 3508 and Instructions
To determine which form is the correct one for you to use, simply review the Instructions to see if you qualify.
If you have any questions about applying for loan forgiveness, please contact your Bar Harbor Bank & Trust Commercial Banker.
Once you have completed the forgiveness application, please submit it to your Bar Harbor Bank & Trust Commercial Banker with all supporting documentation as outlined in the Instructions.
Economic Injury Disaster Loans and Loan Advance
Small business owners are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million to help with temporary loss of revenue.
SBA Debt Relief
If you currently have an SBA guaranteed 7(a) loan the SBA will pay the principal and interest of current 7(a) loans for a period of six months.
For more information on these and other SBA loan programs, please visit the SBA's Coronavirus (COVID-19): Small Business Guidance & Loan Resources webpage.
Loan Modifications and Payment Deferrals
For existing Bar Harbor Bank & Trust commercial loan customers whose cash flow has been severely curtailed due to the COVID-19 pandemic, we will work with you, one-on-one to provide some relief regarding your loan payments. The first step is for us to fully understand and evaluate your liquidity needs. Please connect with your Commercial Lender to start the conversation.
Running your business during this time of social distancing presents its challenges. Bar Harbor Bank & Trust is here to provide solutions. We offer a variety of products and services to help you run your business remotely, securely, and efficiently.
There are a variety of organizations you can reach out to for information on assistance programs. Most have a special web page dedicated to providing information specific to COVID-19.
- Your local Chamber of Commerce
- Your state Chamber of Commerce
- U.S. Small Business Administration
- Your state run Finance/ Economic Development Authority
- Your state Department of Labor
- Industry associations
- Business periodicals published in your state
- Your insurance agent, to inquire about any business interruption benefits available under your policy