Marine Bank & Trust has reported that, as of June 30, 2020, its team has processed 790 Small Business Administration (SBA) Paycheck Protection Program (PPP) applications totaling more than $62 million. Based on the information provided by the borrowers’ applications, these funds will keep an estimated 6,500 employees on their employers’ payrolls for eight weeks.
The PPP, part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, allocated $670 billion for American small businesses impacted by the Coronavirus. The popular program allows for the loan amounts to be forgiven as long as the loan covers payroll costs, and most mortgage interest, rent, and utility costs over the eight-week period after the loan is made; and employee and compensation levels are maintained. Suddenly, the SBA, which typically handles a little more than $25 billion in loans annually, was tasked with getting $670 billion in PPP loans out the door in a matter of weeks.
“The launch was not without its challenges,” said William Penney, Marine Bank’s president and CEO citing unclear guidelines and a crash-prone website. “But despite the setbacks, our team made a heroic effort and worked feverishly around the clock to secure as many loans as possible before funding ran out. It was like trying to get as many people into the lifeboats as possible before the ship sank.”
As a result, Marine Bank secured funding for 230 loans totaling more than $32 million before the initial pool of funding ran out on April 16th, far short of the program’s original June 30th end date.
"The PPP loan saved my company. More importantly, it saved 18 families who depend on their paycheck to pay the rent and put food on the table,” said Brad Rawlins of Service by Premier.
"The PPP loan enabled our preschool to keep our staff of 20 on payroll throughout our temporary closure and to continue our 43-year tradition,” said Sandy Kahle, founder of Maitland Farm Preschool. “It’s wonderful to hear the sounds of happy children again.”
“I can’t think of another time in my banking career when our actions have had such a ripple effect throughout the community,” said Penney. “The United Way of Indian River County was able to cover payroll for 11 jobs which are focused on the local COVID-19 Community Response Fund. The Mental Health Association in Indian River County was able to keep 30 employees and counselors on the payroll for eight weeks enabling them to provide counseling, especially to health care workers, during this highly stressful time. The list goes on and on.”
As of June 30th, two-thirds of the PPP loans funded by Marine Bank were for less than $50,000. The average loan size was $78,614.
“The loans weren’t huge, but they were a big deal to distraught business owners,” concluded Penney. “Community Banks have long touted that we are a steadfast resource for locally owned businesses and the PPP presented us with a unique opportunity to prove our worth to Main Street. I’m proud to say that we rose to the challenge not only for our customers but to other businesses in need. We can only truly succeed when we are all thriving.”