CARES Act Paycheck Protection Program
As recently announced, the Federal Government has approved $320 billion in additional funding for the Paycheck Protection Program, often referenced as “PPP”, which is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program provides payroll assistance to eligible small businesses and select nonprofit organizations in the form of loans 100% guaranteed by the Small Business Administration (SBA) that may be forgiven. First National Bank has been an active participant in facilitating PPP loans, funding over $22 million to eligible clients and affiliate referrals* thus far in an effort to help our community manage through this crisis.
The United States Treasury has worked with the SBA to appropriate the approved funding and the SBA will start accepting new applications today beginning 10:30 am. First National has a waiting list of existing clients with completed applications and documentation that we will submit to the SBA first. Once these applications have been submitted, we will begin accepting and submitting new applications for existing clients and affiliate referrals* on a first come, first serve basis. We have been approved for the Federal Reserve’s Paycheck Protection Program Liquidity Facility and plan to help as many eligible clients as possible.
Depending on demand, our resources and PPP funding, we may begin accepting applications from new clients at some point in the future. Please stand by for further information.
*First National Bank has a reciprocal affiliate referral arrangement with another local community bank due to SBA restrictions on lenders originating loans for defined affiliates.
April 10, 2020
We are encouraged by the Federal Reserve’s announcement yesterday regarding the launching of its Paycheck Protection Program Liquidity Facility available to banks. This facility is much needed to alleviate the liquidity crunch banks are facing as they help eligible small businesses and nonprofit organizations access payroll assistance through the Paycheck Protection Program (PPP) during this Coronavirus Pandemic. First National Bank plans to work with the Federal Reserve to set up this facility in order to begin accepting more applications from our clients for PPP loans. Please standby for further information as to when we will start accepting new applications.
As part of our community responsibility, First National Bank has been an active participant in the Paycheck Protection Program, often referenced in the media as “PPP”, which is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The program provides payroll assistance to eligible small businesses, and select nonprofit organizations, in the form of loans 100% guaranteed by the Small Business Administration (SBA) that may be forgiven.
While Paycheck Protection Program loans are guaranteed by the federal government, they are funded by participating banks across the nation, such as First National. The government is not directly funding these loans. Banks and other qualified financial institutions choose whether to participate, or not, based on resources available to process applications and funding or liquidity. First National was in a position to participate and chose to do so in order to help our clients continue to fund their payrolls and thus support our community.
To date we have facilitated 69 applications that have been approved totaling over 16.9 million dollars. We have another 94 applications in process totaling over 7.6 million dollars. If all loans are approved by the SBA and closed, we will have funded 24.5 million dollars in an effort to help our community manage through this pandemic crisis. Proportionate to our assets, this volume is certainly significant.
Unfortunately, our funding is not unlimited and we are currently not able to submit Paycheck Protection Program applications for clients making inquiries after the close of business on Friday, April 3, 2020. However, please know we have taken every step to facilitate this much needed program to the best of our ability and capacity, and will continue to work with our clients throughout this crisis, to include providing traditional bank financing to qualified applicants. Please contact a First National Bank Loan Officer for more information about available options.