Wavebreak Media Ltd
After a rough start, the paycheck protection program (PPP) loan process has gained traction. Major banks now have working online portals. They’re collecting documents and sending applications to the SBA for approval. And just today, lenders that have never previously registered with the SBA got access to participate through a new online portal. Small businesses should have better access to these loans soon.
Reuters reported on Tuesday that more than $100 billion in funds had been authorized for these loans, according to a senior Trump administration official, although neither the administration nor the bank industry had data on how much had been disbursed to businesses.
One business owner with 20 employees and $2.5 million in revenue told me he applied to his regional bank on Friday and was approved on Sunday. He says he doesn’t have the funds yet, or even a timeline for getting them, but the approval itself was a big help and quite a relief.
Most banks are only accepting applications from current customers, creating a major hurdle for many businesses. Companies that don’t bank with a participating institution haven’t had many options.
That’s starting to change, however. Some banks are now taking applications from new and non-bank customers. There are also some third-party FinTech companies stepping in to help.
On the eve of the PPP loans opening to everyone (April 3rd was for small business and sole proprietors, April 10th is for independent contracts and the self-employed), it’s important to know all of your options. And with some like Florida Senator Marco Rubio arguing that the funds for the program will run out next week, it’s important to get in line as soon as possible.
I’m creating a list here and will update it as I identify more participating banks. If you know of any not listed here, please contact me at the links below.
Also if you just started reading about the CARES Act’s small business provisions, have a look at these additional stories if you need to know your options through the CARES Act, you have additional questions that you’re not finding answers to or you want to know how to calculate your payroll expenses for loan purposes.
Right now U.S. Bank is the only bank accepting applications from new customers. And even U.S. Bank encourages applicants to start with their current bank as they are processing current customer applications first.
Northeast: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey and Pennsylvania
Orrstown Bank: (Central PA, Greater Baltimore and Hagerstown Regions) This bank asks you to fill out an application and send it to firstname.lastname@example.org. You need to indicate in your email whether you are a current or future Orrstown bank client
Midwest: Ohio, Michigan, Indian, Wisconsin, Illinois, Minnesota, Iowa, Missouri, North Dakota, South Dakota, Nebraska and Kansas
South: Delaware, Maryland, Virginia, West Virginia, Kentucky, North Carolina, South Caroline, Tennessee, Georgia, Florida, Alabama, Mississippi, Arkansas, Louisiana, Texas, and Oklahoma.
1st National Bank of Texas (Texas, Arizona, Arkansas and New Mexico): New bank customers should collect business entity documentation (state filings, EIN, and operating agreement/bylaws, if applicable) and driver’s license information. It is recommended to have the bank create a direct deposit account specifically for the PPP loan proceeds.
West: Montana, Idaho, Wyoming, Colorado, New Mexico, Arizona, Utah, Nevada, California, Oregon, Washington, Alaska, and Hawaii.
Senator Rubio has pushed to allow FinTech firms to participate in PPP lending to increase access to loans. He tweeted early today that the US Treasury has released a new lender application for non-bank lenders such as Paypal PYPL and Squarespace to increase the availability of loans.
Here are a current list of FinTech companies that can also help you apply for these loans.
I will continue to update this list as more information becomes available. If you know of any other companies providing loans through the CARES Act, contact me at the links below.