How Wine Country lenders are helping small businesses outlast the coronavirus lockdown
As the COVID-19 mandatory business lockdown continues, some North Bay banks and the Redwood Credit Union are among a number of financial institutions across the U.S. providing aid to small businesses and community organizations impacted by economic injury.
The Business Journal reviewed changes being made by local banks in the region, announced in their press releases and websites, to determine what financial relief packages are available. A number of these banks also assist customers in obtaining low-interest Small Business Administration economic injury loans through the SBA Office of Disaster Assistance.
The following is a brief overview of economic-relief programs from seven financial institutions with local operations.
Exchange Bank (OTCMKTS: EXSR)
“The coronavirus situation remains very fluid. We are making daily adjustments to our procedures to ensure our customers can safely access their funds and do their banking,” said Gary Hartwick, president and CEO of Exchange Bank.
The bank created a coronavirus information page to answer customer questions and provide general service information.
Regarding consumer and business lending practices, the bank said it's too soon to know what our its customers need and how it can best address those needs. The institution said it will work with consumers and businesses on an individual basis during the COVID-19 pandemic and that it stands ready to support the customers and the communities it serves.
Bank of America (NYSE: BAC)
The institution partners with the Small Business Administration to provide support for its clients. This includes low rates and certain fee waivers in place on SBA express loans, SBA 7a loans and SBA 504 loans. This financing can be applied for through the bank.
As the COVID-19 pandemic continues to develop, bank officials told the Journal it has been proactively checking in with clients, letting them know about important resources the bank has to offer.
Bank of America clients can discuss their needs by calling its Small Business Banking service center at 888-287-4637 or connect digitally through its Business Advantage 360 platform.
Bank officials provided a list of ways it supports for clients impacted by the coronavirus:
Consumer and small business deposit accounts: Clients can request refunds including overdraft fees, non-sufficient funds fees, and monthly maintenance fees.
Consumer and small business credit cards: Clients can request to defer payments and obtain refunds on late fees.
Small-business loans: Clients can request to defer payments, refunds on late fees.
Auto loans: Clients can request to defer payments, with payments added to the end of the loan.
Mortgages and home equity: Clients can request to defer payments, with payments added to the end of the loan.
Credit reporting: BofA said there will be no negative credit bureau reporting for up-to-date clients.
Foreclosure sales, evictions and repossessions: Have been paused.
Clients facing financial hardships related to the coronavirus can go to the company's website and contact the client services team for assistance.
Redwood Credit Union
Redwood Credit Union, a nonprofit member-owned cooperative, stated it has special assistance programs for those financially impacted by loss of income as a result of the COVID-19 crisis and business lockdown:
0% annual percentage rate loans for impacted businesses and individuals for current RCU members.
Rate is effective as of March 17. All rates, terms, and special offers subject to change. Certain restrictions may apply.
Example payment on a 0% APR 12-month term per $1,000 borrowed: $83.33
Maximum loan amount is $5,000.
Term lengths up to 12 months.
First loan payment may be deferred up to 90 days.
Extended loan payment relief: on all RCU loans and lines of credit.
90-day payment deferrals on all consumer, credit card, mortgage and business loans
Waiving all late fees over the next 90 days.
Loans will not be reported as delinquent to the credit bureaus during any payment deferral period.
Reversal of fees for Overdraft Protection Advantage and nonsufficient-funds fees until further notice.
Early withdrawals:from RCU certificates of deposit (CDs) without any penalty.
For other financial assistance programs RCU members are advised to call 800-479-7928, option 2, for assistance due to financial hardship resulting from the pandemic.
Comerica Bank (NYSE: CMA)
Comerica Incorporated officials stated it is discussing various loan payment deferral, fee waiver options and other considerations that best meet business and personal customer circumstances for those impacted by COVID-19 and experiencing financial difficulty.
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