PPNB helps small businesses maintain nearly 800 jobs through the Paycheck Protection Program (PPP).
When business owners and bankers look back on the pandemic, we won’t be able to forget the Paycheck Protection Program (PPP) administered by the Small Business Administration (SBA) and serviced by lenders. Originally authorized through the CARES Act, the goal of the PPP is to help businesses pay their employees, as well as keep their rent and utilities current. Businesses that use the loan funds for those purposes can apply to have some or all of their loan principal and accrued interest forgiven by the SBA.
The program got off to a rocky start but it should be noted that the scale of the program was unprecedented. Once it was up and running, lenders churned out loans to the tune of $521 billion as of June 30, 2020. In Colorado, banks and non-bank lenders made 104,402 loans to businesses, presumably supporting hundreds of thousands of jobs in our state.
At PPNB, we have originated 106 PPP loans so far and we are still receiving applications. The total dollar amount of PPP loans done by PPNB to date is $5.4 million, which seems like a small amount relative to banks much larger than us. When one considers, however, that PPP loans increased our loan portfolio by nearly 18%, the commitment to our business customers becomes significant. In fact, we were proud to support some of the smaller businesses in our region; our smallest loan was $625.
Our PPP borrowers employ nearly 800 people in our community. As a community bank, we are with our customers during their successful times as well as their challenging times. We are grateful that we were able to support them when they needed it most.