Update: April 6, 2020. Summit Bank takes pride in our ability to help small businesses and our communities hurt by COVID-19. This is an unprecedented time in our lives. The magnitude of the need of businesses in our communities is abundant. We immediately began reviewing hundreds of applications Thursday night through the weekend. As you know, we are a local community bank with three offices and an asset size of a little more than $500 million. We have submitted over $35 million of PPP loans as of Monday morning to the SBA that have received preliminary approval. Our entire Leadership Team has been working around the clock to process applications. We are very happy that we have been able to help as many businesses as we have under these extremely high pressure times. We are disappointed that we are unable to immediately help the 500 + business clients who applied for the Paycheck Protection Program (PPP), which became available for application on the morning of Friday, April 3, 2020.
We realize there is a lot of apprehension surrounding the PPP Program along with some fear that the program will run out of money before all PPP applications can be approved. Along with other bank CEOs, I was able to join a video conference call Sunday morning with Treasury Secretary Mnuchin. We learned:
- Out of the 5,200 lenders in the United States, there were 1,900 lenders participating in the PPP.
- A small number of Community banks are the very first PPP lenders in the SBA system.
- Summit Bank is one of the first banks in the country that is up and running with loans already preliminarily approved over the weekend.
- We have learned that more lenders will start to process applications this week, including national and regional banks.
- Over the weekend SBA was receiving about $1 billion in approvals every hour.
- There is a lot of support in Washington D.C, for more funding if the $349 billion runs out.
We are working on several avenues that would allow us to provide additional funding. We believe we will know more in the coming days. It is our sincerest wish that we can help every client who has applied at Summit but, due to excessive demand exceeding supply, we are unable to help everyone.
We will reach out to those who have preliminary SBA approval in Phase 1 to follow up with closing documentation and required certifications by the end of the business day on Tuesday, April 7. We are waiting for the SBA for finalized guidance that will be required prior to disbursement.
President and CEO