Local bank processes over 176 SBA PPP loan applications
April 29, 2020 | TS Bank
Treynor, IA – TS Bank has processed over 176 Small Business Association’s (SBA) Paycheck Protection Program (PPP) applications totaling $15.2 million and protecting 1,759 paychecks in the 13 business days the program has been available.
Launching in early April, the SBA PPP federal loan program is aimed at helping small businesses and select nonprofits who have been severely impacted by COVID-19, providing payroll assistance in the form of 100% guaranteed loans from the SBA.
During the first round of funding which lasted 10 business days, TS Bank processed 98 loans totaling $13.5 million protecting 1,521 paychecks.
The second round of funding was released Monday morning when the portal opened at 9:30 a.m. As of late yesterday, TS Bank had processed 78 second round loan applications totaling $1.7 million protecting 238 paychecks and also depleted its backlog of SBA loans ready to be claimed.
TS Bank is encouraging all businesses and nonprofits across southwest Iowa and Omaha who are interested in this program to call TS Bank at 844-487-3030 to be connected with the banking team.
“It has been touching to hear so many local business owner stories of how much their SBA PPP loan has meant to them. Business owners have told us their loan was the difference maker for them to be able to stay afloat and to retain employees in these difficult times. I am incredibly proud of the TS Bank team for delivering impact in the time of community need,” said Kevin Forristall, Executive Vice President. “We are very proficient with the SBA PPP process and are committed to protecting as many paychecks as we can. If your business is seeking a SBA PPP loan, we are here to help.”
According to the SBA, the average loan size in the second round of funding is $111,000, down from $207,000 in the first round. The majority of loans made since Monday—85%—have been for amounts of $150,000 or less. Roughly seven in 10 second-round loans were made by lenders with less than $10 billion in assets, amounting to nearly $30 billion.1
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. According to the SBA, they will forgive all loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19. Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries. Small businesses in the hospitality and food industry with more than one location could also be eligible if their individual locations employ less than 500 workers.
According to the SBA, the loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees. Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease. This loan has a maturity of two years and an interest rate of 1%.
If you wish to begin the SBA PPP application process at TS Bank, call us at 844-487-3030 to be directed to a market president.
About TS Bank: TS Bank’s mission is to Ignite Prosperity® in the communities it serves. Leading the resurgence of community banking, TS Bank reinvests 10% of their net income locally; hosting educational events and partners with local organizations and non-profits. Treynor State Bank was chartered in 1923 and branded to TS Bank in 2005. TS Bank has $365 million in assets, along with the largest Iowa state-chartered C-Corp trust department west of Des Moines at nearly $218 million in assets named TS Prosperity Group. Locations include Treynor, Macedonia, Atlantic, Corning and Council Bluffs, Iowa. For more information visit tsbank.com.