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Local Bank received funding for 713 Small Business PPP loans

By Cindy Jo Ayers
The Small Business Administration (SBA) began accepting Paycheck Protection Program (PPP) applications  on April 3, 2020.  At the end of the first round of loans on April 16, SBA had granted 1,661,367 loans to small business through out America so they could continue to pay their employees.
The PPP was designed for injecting cash in the form of forgivable loans to small business employers through the SBA and banking system to avoid a massive flood of unemployment applications during the Covid 19 crisis. This plan which would have normally taken years to implement took less than one month to implement.
The initial funding for this program was $351 billion and the first applications were received on the afternoon of April 3 and ended on April 16, when the first round of funding was depleted. During the first round of PPP loans Drummond Community Bank took 831 applications for $64.3 million dollars in those initial applications, they submitted and received funding approvals for 713 of those loans for a total of $60.4 million (94% of requests).
Scott Guthrie, President, Drummond Community Bank said, “Our success rate was extremely high relative to other banks, primarily because of our staff’s willingness to develop a work flow that called for two shifts starting early in the morning through at least midnight each night.” Guthrie went on  to say, the bank only had four SBA portals available to them so staff was inputting from 7 a.m. until late in the night each day including weekends.
It was reported that many banks chose to outsource this input to third parties, which caused delays in customer processing and confusing customer communication.
The second round of PPP loans began on Monday, April 27, Guthrie said, “Any of the applications that did not get approved on the first round are now being processed with priority in the second round.”
The next round of funding for PPP is for $310 billion, with $60 billion of that being earmarked for smaller community banks.
President Donald Trump himself said during one of the afternoon Covid 19 briefings that smaller community banks did a far better job of getting the PPP money out than big banks.
Guthrie believes  during the last several weeks, people have quickly learned the value of local community banks. “We have been overwhelmed with phone calls from non-customers who could not even get a return phone call from their big bank regarding the PPP program.”

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