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COVID 19: Payment Relief Options

In an effort to assist our Community and our Customers during this time of uncertainty the Bank has elected to proactively offer the following solutions to our Clients who are current on payments (prior to this natural disaster) and are in good-standing with the Bank, the Bank is offering the following relief efforts to our Clients. Please reach out to your Relationship Manager, Business Development Officer, or Branch Representative to assist you directly with the below:

HELOC Loans, Consumer Loans, Consumer Mortgages, and Small Business Loans as defined as Loans $1MM and less:

  1. 30 Day — Skip-A-Payment Option: Clients may skip one-full payment. This applies to both I/O and P&I Loans.
  2. 90 Day — Interest Only Option: Clients may pay interest-only payments for 90 days.
  3. 90 Day — Full Payment Deferral Option: Clients may defer the entire monthly payment for 90 days.
  4. Clients can obtain the National Disaster Questionnaire from their Bank Representative and submits along w/ current financials.

Relief Options for Loans 1 Million and less

Commercial Loans $1MM or larger:

  1. Clients are asked to contact your Relationship Manager to discuss how COVID-19 is Directly Impacting the Client’s ability to sustain operations as well as preventing the Client from making scheduled payments.
  2. Clients can obtain the National Disaster Questionnaire from their Bank Representative and submits along w/ current financials.

Relief Options for Loans Greater than 1 Million

FVCbank would strongly encourage all Clients to take advantage of the SBA Disaster Assistance Program.

SBA Disaster Relief Program:

  1. Application Process: Client applies directly with SBA via link below for Loan to cover working capital needs. Projected time-frame from date of application to loan closing is up to 45 days.
  2. Loan Amount: Up to $2,000,000
  3. Rates: Either Fixed @ 3.75% or Fixed @ 2.75% for qualifying not-for-profits.
  4. Term: Up to 30 years.
  5. Payments: Payments can be deferred for the first 12 months.
  6. Collateral: SBA is willing to take an inferior lien position behind BA’s and RE. A shortage of collateral will not prevent approval.
  7. Fees: No SBA Fee required. Standard fees apply e.g., UCC lien filing fees, flood certs, etc.
  8. Use of Proceeds: Client can use proceeds as they see fit including making payments on FVCBank debt. Funds cannot be used to pay existing Government Debt e.g., SBA 7a loan payments.
  9. Link to Submit Application: https://www.sba.gov/funding-programs/disaster-assistance
  10. Additional Notes: SBA recommends that clients submit a loan request equal to 1/3 of the prior year’s Gross Profits (= 4 months of gross profits). If client exhausts all loan proceeds, Client is able to request an additional loan at that time. Currently, the Mid-Atlantic and a few other regions have access to this program. Given the latter, the SBA recommends Client’s submit applications prior to the program being offered Nation-wide which will put further strain on their resources.