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.

Comerica customers can call 888-444-9876 to discuss their unique situations.

U.S. Bank (NYSE: USB)

On March 13 U.S. Bank made temporary adjustments to several of its lending products and services, effective to March 31 or thereafter for a simple Loan, transparent installment loan and personal loan products). All of these changes are designed to make these products more affordable and accessible to existing customers impacted by coronavirus, along with relief and forbearance programs for those who qualify, said officials.

“We understand the financial pressure that many of our customers, both consumers and businesses, are facing due to the coronavirus, and we're here to help,” said Augustus Tobes, business banking North Bay regional sales manager, U.S. Bank.

Here are the temporary adjustments:

Citibank (NYSE: C)

Products for business customers, including Quick Loan and Cash Flow Manager. Qualified business customers can receive funds in their accounts within an average of 15 minutes:

Quick Loan (for general business purposes): $5,000 to $250,000 with terms from 12 to 84 months at an interest rate 2% lower than the standard rate for which the business would qualify.

Cash Flow Manager (secured and unsecured): This is an on-demand line of credit of $10,000 to $250,000 at an interest rate 1% lower than the standard rate for which the business would qualify.

U.S. Bank decreased its prime lending rate to 3.25% from 4.25% on March 16.

Checking accounts: Reactively refunding fees for impacted customers for overdraft protection fee, monthly maintenance fee and foreign ATM fees.

Stock buyback program: U.S. Bank has temporarily halted this program to support Federal Reserve efforts to moderate the impact of COVID-19 on the economy and global markets.

Mortgage payment deference: for 90 days with no late fees. (call a service representative about mortgage relief options and all products and services that may be available (888-287-7817, #2).

Small business Visa card: The U.S. Bank Visa Platinum Card for small business owners has a 0% introductory rate on purchases and transfers for 20 billing cycles, and thereafter at a variable rate, currently 9.99% to 17.99%.

“This is a rapidly evolving situation, and we want our customers to know we are here to provide assistance should they need it,” said Anand Selva, CEO, Citi's U.S. Consumer Bank. “We continue to monitor developments closely and will evaluate additional actions to support our clients and communities as needs arise.”

Citibank officials stated its program include fee waivers for Citibank customers, hardship programs and additional small-business support, such as extended banker availability, according to the American Bankers Association.

Here are actions the institution has taken:

Wells Fargo Bank (NYSE: WFC)

Individual and small business customers affected by COVID-19 may be eligible for the following assistance, effective Monday, March 9, for an initial 30 days.

Retail Bank: Fee waivers on monthly service fees; waived penalties for early CD withdrawal.

Small Business: Fee waivers on monthly service fees and remote deposit capture; waived penalties for early CD withdrawal; bankers available after hours and on weekends for support.

Citibank has “always on” assistance programs for eligible credit card customers, including credit line increases and collection forbearance programs.

“Wells Fargo has taken - and will continue to take - the steps needed to support our customers, employees and communities during this difficult time,” said CEO Charlie Scharf in a statement. “We will continue to evaluate this fluid situation and take additional action as necessary.”

Resources identified by bank officials as earmarked to help small businesses include, $2 million allocated for the deployment of flexible capital in collaboration with Opportunity Fund and will also provide immediate cash boosts and financial coaching support of entrepreneurs and their low-wage workers in coordination with SaverLife.

Wells Fargo is taking several additional steps to meet the needs of customers:

TriCounties Bank

Providing assistance including fee waivers, payment deferrals, and other expanded assistance for credit card, auto, mortgage, small business and personal lending customers who contact the bank, and will continue to communicate with customers as the situation evolves.

Encouraging customers to continue making their mortgage payments if they can, but will grant an immediate 90-day payment suspension for any Wells Fargo Home Lending customer who requests assistance.

Suspended residential property foreclosure sales, evictions and involuntary auto repossessions.

“We understand that small businesses are facing urgent challenges, and we're here to help,” said Michael Murphy, marketing director for TriCounties Bank.

The institution's small business deferment program may offer the following help if a customer's ability to make a loan or line-of-credit payment has been affected by the coronavirus crisis:

No payments for the next three monthly statement cycles

No late fees during the deferment

No adverse credit reporting during the deferment

This program is available for most small-business loans and lines of credit, including existing loans backed by the SBA or other government agencies.

Customers must apply for the deferment by contacting their local branch or by calling 800-922-8742. Payments must be current in order to be eligible for application to the program. Customers will also be asked to sign a change in terms letter, which explains the changes to their loan or line of credit. Customers may also qualify for additional loan changes following the 90-day deferral period.

For large commercial loans of $250,000 or more, TriCounties Bank may be able to provide:

Short-term interest-only payment periods.

Short-term deferral of interest and principal, referral to other third-party or government assistance programs and/or long-term or custom debt restructuring.