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 “I am very pleased that Lincoln College was so
quickly approved for this critical loan, which will help us save the
jobs of workers impacted by furloughs and reduced hours as a result
of the economic disruption that has accompanied this deadly virus,”
Gerlach said. “I want to thank our Congressman Darin LaHood, as well
as Illinois Senators Richard Durbin and Tammy Duckworth, for their
support of the federal legislation that created this and other
critical relief programs.
“In addition, I want to thank Steve Aughenbaugh, President and CEO
of the State Bank of Lincoln and Dave Irwin, Vice President and Farm
Manager for their assistance in helping us successfully apply for
this loan. It’s quite an accomplishment that they were able to help
us qualify less than a week after the program was launched,” Gerlach
added.
The Small Business Paycheck Protection Program was contained in the
Coronavirus Aid, Relief, and Economic Security Act (CARES) and began
on Friday, April 3, making the Lincoln College application one of
the first loans approved.
“This is exactly what we envisioned when we enacted the Paycheck
Protection Program in the CARES Act,” said Congressman Darin LaHood
(R-18). “This loan will enable the college to keep people working,
earning paychecks and supporting local businesses during the
Coronavirus pandemic. This isn’t just a benefit to the employees of
Lincoln College. It will help support businesses and workers
throughout the Lincoln community and Logan County, and I will
continue to do what I can to support them as we navigate this
challenging time.”
LaHood also urged other small businesses impacted by the COVID-19
pandemic to apply for loans. According to
the Federation of Independent Illinois Colleges and Universities,
Lincoln College has an annual local economic impact of more than $53
million and generates over $9 million in federal, state and local
taxes. “Our commercial loan officers have
been putting in a lot of hours in order to handle the huge demand
for the SBA PPP program, and we appreciate everyone’s patience,”
Aughenbaugh said. “As an SBA Preferred Lender, we are happy to be
able to provide this service to our local businesses and
organizations in order to help them retain their employees during
these tough times.”
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“Keeping our employees earning a paycheck helps
preserve that economic impact and allows Lincoln College to continue
to benefit everyone in our community,” Gerlach added.
The loan will allow Lincoln College to recall 32 furloughed
employees, as well as allow 16 employees who had been reduced to
three-day work weeks to return to five-day work weeks. In addition
all part-time and student workers will continue to get paid, even if
they are unable to work due to the Illinois State Stay Home order.
Most of the affected employees were maintenance, food service,
residence hall and other support staff.
The Paycheck Protection Program is a $349 billion emergency loan
program created with the President’s signing of the CARES Act. The
program provides forgivable loans up to $10 million to small
businesses left financially distressed by the Coronavirus (COVID-19)
pandemic. The loans are administered at the local level by a
national network of banks and credit unions and are designed to
maintain the viability of millions of small businesses struggling to
meet payroll and day-to-day operating expenses. Small businesses
interested in the program should contact their local lenders.
The loans, which are 100% backed by the Small Business
Administration (SBA), are being provided to small businesses without
collateral requirements, personal guarantees, SBA fees, or credit
elsewhere tests.
The loans cover up to eight weeks of average monthly payroll (based
on 2019 figures) plus 25% and payments are deferred for six months
(interest does accrue). The SBA will forgive the portion of loan
proceeds used for payroll costs and other designated operating
expenses for up to eight weeks, provided at least 75% of loan
proceeds are used for payroll costs.
[Lauren Grenlund
Director of Public Relations
Lincoln College] |
