Summit Bank’s goal is to help as many of our small businesses hurt by COVID-19 as possible. This is an unprecedented time in our lives. The volume of the applications received for this program from businesses in our communities has been staggering. Last Thursday night, before the launch of PPP, and as soon as guidance was available to us, we began reviewing hundreds of applications, and we haven’t stopped since.
Like all loan processes, a review and due diligence is necessary to move forward. These were not grants but a special type of Summit Bank SBA loan with advantageous terms for borrowers. In this process, the bank took very seriously the main considerations of the bill:
- The uncertainty of current economic conditions makes necessary the loan request to support the ongoing operations
- The funds will be used to maintain workers and maintain payroll, or mortgage payments, lease payments and utility payments.
We had 500 applications to review by 2:00 p.m. on Thursday. As of today, we have received preliminary approval on $50 million PPP loans, which is a large amount for a community bank with three offices and total assets of a little more than $500 million. Because these are loans that may remain on our books, certain regulatory capital levels have to be considered and therefore every application cannot be approved. $50 million is not enough to fund all the applications we have received.
We have tried to contact everyone personally. For those who have not been contacted, we were not able to process your loan due to the overwhelming demand and need in our communities. The SBA, as of the time of this writing, still has over $250 billion available in the Program. Therefore, we encourage you to apply for PPP from another resource. Though we are not endorsing any alternatives, we are aware of three online resources that are taking applications for PPP approval among the many avenues that are available to pursue. Their websites are:
Please check Summit Bank’s PPP page for updates as this program evolves.