Arsenal CU was a lifeline for more than 200 local small businesses
Helping small businesses with loans and other financial products and services is one of the ways that Arsenal Credit Union supports local economies. As a local lender, Arsenal reinvests its deposits right back into the community.
Loans that Arsenal and other financial institutions made between March 27 and August 8 through the Small Business Administration’s Paycheck Protection Program (PPP) provided a direct incentive for small businesses to continue operating and keep their workers on the payroll in the wake of the COVID-19 pandemic. Funds spent on basic operating expenses, such as payroll and rent, are eligible for forgiveness by SBA.
Overall, SBA approved 5.2 million loans through 5,460 lenders and disbursed $525 billion through its program, with the average loan size $101,000. This federal aid benefitted small businesses and workers in a wide range of industries, including:
- Health care and social assistance
- Professional and technical services
- Accommodation and food services
- Retail and wholesale trade
- Real estate
Loans provided by Arsenal helped saved more than 1,000 jobs locally
As an SBA Certified Lender, Arsenal funded almost $6.1 million in PPP loans, mostly within the first 60 days of the program, to help 209 businesses and self-employed individuals in the St. Louis area. The average loan amount was $51,000, with the lowest being $1,499 and the highest at $864,142. These loans helped 1,028 workers remain employed and paid.
Nationwide, Arsenal was among 718 credit unions with less than $1 billion in assets that participated in this special program which was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act approved by Congress. In aggregate, these credit unions issued 67,846 PPP loans totaling $3.1 billion. Adding in loans made by larger size credit unions, more than 1.1 million jobs were saved.
Economic relief still available through another SBA program
PPP has ended, with $133.9 billion remaining in the $659 billion fund. While SBA has stopped taking PPP loan applications, it continues to offer monetary aid through its Economic Injury Disaster Loan (EIDL) program for businesses and non-profit organizations currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.
These loans feature low rates but must be paid back. Borrowers can take up to 30 years to repay their loan, with the first payment deferred for one year. Among those eligible are sole proprietors, freelancers and independent contractors. To apply, visit SBA.gov.
For more information on how Arsenal can help your small business, contact Jennifer Wright (firstname.lastname@example.org; 314.919.1016) or Andrew Dodge (email@example.com; 314.919.1060)
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