The move relieves banks, companies and retarded SBAs
April 1, 2021
Corporations and banks received a two-month extension this week to apply for Paycheck Protection Program loans as President Joe Biden signed a bill that delayed the deadline for the final round of PPP loans from March 31 to May 31.
This week’s extension takes the pressure off bankers and corporations, says Steve Yeakel, president and CEO of the Virginia Association of Community Bankers. So far in this round in 2021, Virginia banks have taken out nearly 65,000 PPP loans totaling $ 4.49 billion.
This round of PPP loans is more focused, with some of the added challenges associated with second-draw loans, he says, “But at the end of the day, more money comes to more people who really need it.”
Since launching the PPP loan program in April 2020 following the economic disruption caused by the pandemic, Richmond-based Atlantic Union Bank has processed 15,700 loans totaling approximately $ 2.2 billion – “the vast majority” of PPP loans in Virginia, Bank President and CEO John Asbury says. The program has brought more than 3,000 new customers to the bank since last year, Asbury says.
Atlantic Union has received just over 6,000 applications and issued loans totaling more than $ 591 million since the beginning of the last round of PPPs. So far, the SBA has approved just over 5,000 loan applications.
Atlantic Union stopped accepting PPP loan applications on March 19, but has resumed the process due to the extension. “The program just keeps getting better,” says Asbury. “Any changes made are for the benefit of the borrower.”
He and Alison Holt-Fuller, who leads the bank’s PPP program in her role as head of first-line risk management for products and companies, say some changes are making the program more attractive.
This includes a more streamlined process of forgiveness and the ability to have a second draw – including the potential for businesses to receive two draws in 2021, provided that the time periods required by the program do not overlap. They say another change is that businesses can apply for both a PPP loan and a closed venue grant.