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DALLAS, Jan. 11, 2021 /PRNewswire/ -- Crossroads Systems, Inc. (OTCQB: CRSS) ("Crossroads" or the "Company"), a holding company focused on investing in businesses that promote economic vitality and community development, through its wholly owned subsidiary Capital Plus Financial ("CPF"), today announced that it is continuing to address potential barriers to accessing capital for minority and underserved communities by partnering with Blueacorn to provide a simple and efficient platform for small businesses across the country to apply for first and second draw Paycheck Protection Program ("PPP") loans via the Small Business Administration ("SBA").
In the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act, Congress set aside $15 billion across first and second draw PPP loans for lending by community financial institutions like CPF. Separately, the SBA has set aside $15 billion and $25 billion, respectively, for first and second draw PPP loans for borrowers with a maximum of 10 employees or for loans less than $250,000 to borrowers in low-or-moderate income neighborhoods.
Eligibility for a second draw loan requires borrowers to have exhausted the remainder of their first draw loans, have no more than 300 employees, and demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. For most borrowers, the maximum loan amount of a second draw loan is 2.5x average monthly 2019 or 2020 payroll costs up to $2 million.
To ensure increased access to PPP funds for minority, underserved, veteran, and women-owned business concerns, the SBA is accepting applications only from community financial institutions for at least the first two (2) days following the reopening of the loan portal on January 11, 2021. In collaboration with FinTech platform Blueacorn, CPF has developed an easy-to-use application wizard that automatically completes and submits all necessary documentation directly to the lender. Prospective applicants can access the loan portal at https://blueacorn.co/.
"We are proud to be working alongside Blueacorn to make sure that struggling businesses receive the capital they need as quickly as possible," said Crossroads CEO Eric Donnelly. "CDFI's like CPF have seen firsthand the impact that the pandemic has had on minority-owned businesses in low-to-moderate income tracts. Many of these businesses are relying on PPP lending to stay afloat, and CPF stands ready to inject the capital necessary to continue building communities back even stronger."
About Crossroads Systems
Crossroads Systems, Inc. (OTCQB: CRSS) is a holding company focused on investing in businesses that promote economic vitality and community development. Crossroads' subsidiary, Capital Plus Financial (CPF), is a certified Community Development Financial Institution (CDFI) and certified B- Corp, which supports Hispanic homeownership with a long term, fixed-rate single-family mortgage product.
Blueacorn is an online financial platform catering to underserved business communities allowing them to receive and access business funding. Blueacorn provides solutions to business owners who may have gaps or lack financing through their online platform
Important Cautions Regarding Forward-Looking Statements
This press release includes forward-looking statements that relate to the business and expected future events or future performance of Crossroads Systems, Inc. and Capital Plus Financial and involve known and unknown risks, uncertainties and other factors that may cause its actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. Forward-looking statements include, but are not limited to, statements about Crossroads Systems' and Capital Plus Financial's ability to implement their business strategy, and their ability to achieve or maintain profitability. The future performance of Crossroads Systems and Capital Plus Financial may be adversely affected by the following risks and uncertainties: economic changes affecting homeownership in the geographies where Capital Plus Financial conducts business, developments in lending markets that may not align with Capital Plus Financial's expectations and that may affect Capital Plus Financial's plans to grow its portfolio, variations in quarterly results, developments in litigation to which we may be a party, technological change in the industry, future capital requirements, regulatory actions or delays and other factors that may cause actual results to be materially different from those described or anticipated by these forward-looking statements. For a more detailed discussion of these factors and risks, investors should review Crossroads Systems' annual and quarterly reports. Forward-looking statements in this press release are based on management's beliefs and opinions at the time the statements are made. All forward-looking statements are qualified in their entirety by this cautionary statement, and Crossroads Systems undertakes no duty to update this information to reflect future events, information or circumstances.
©2020 Crossroads Systems, Inc., Crossroads and Crossroads Systems are registered trademarks of Crossroads Systems, Inc. All trademarks are the property of their respective owners.
Investor Relations Contact:
Gateway Investor Relations
Matt Glover and Tom Colton
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SOURCE Crossroads Systems; Capital Plus Financial