M&T Bank says 85% of PPP loan applications come from regular borrowers
SYRACUSE, NY – M&T Bank Corp. (NYSE: MTB), the largest lender and SBA bank ranked by deposits in central New York City, says that to date, about 85% of the claims it has received in the new round of the check protection program Payroll (PPP) come from second time borrowers.
PPP is the forgivable loan initiative that aims to help small businesses survive the economic disruptions of the COVID-19 pandemic. On January 11, the US Small Business Administration (SBA) opened the loan portal for the new round of PPP, starting with community financial institutions. Big banks like Buffalo-based M&T had to wait another week to participate.
Unlike previous PPP cycles, borrowers who have already received loans may have a second bite to eat. Second Draw PPP Loans are for certain eligible borrowers who have already received a PPP loan, typically have 300 employees or less, experienced a 25% reduction in gross receipts, and have used or will use the full amount of their first PPP loan. .
And that’s where the heaviest action is yet.
Hard-hit sectors of the economy like restaurants and hospitality, which may have received previous PPP loans, “are still in need of help and this program is the perfect help for them,” said Lee DeAmicis, regional director business banking services at M&T Bank. in Syracuse. He has worked at the bank for 25 years.
M&T Bank launched its PPP loan portal on January 19. In the first three days of operation, the bank received approximately 600 completed applications in its Syracuse / Utica area, requesting more than $ 77.8 million in PPP funding for companies collectively employing more than 14,400 workers. . The average loan amount was approximately $ 129,000.
Across the company, M&T Bank has received more than 10,000 completed applications requesting nearly $ 1.6 billion in PPP financing for companies employing approximately 243,000 workers. The average loan size was $ 151,160 and 76% of loans were less than $ 150,000.
The activity was the most intense on the first day. M&T says that, as it has seen in previous PPP cycles, it expects that speed to decrease in the coming days.
So far, the process has gone better than in the first tranche of the PPP in spring 2020, DeAmicis said, as the bank and its clients now have more experience with the program.
“The last time… there was panic and a sense of urgency for us and our clients. We had never experienced it; nobody knew what was going on, ”he says. “This time around, we have a solid understanding of how the process works and how much money is available. So everyone feels a lot more comfortable.
To apply through M&T, small businesses must have or open a new M&T checking account in order to apply. Assuming the loan is approved, the checking account is where the funds will be deposited.
In previous cycles, M&T Bank has provided over $ 7 billion in PPP assistance to more than 35,000 businesses and has grown its SBA team from 20 to over 2,700 to manage the process for clients.
“The need has not diminished and we are bringing the same energy and commitment to this round of PPP funding,” said Julia Berchou, Vice President and Director of Public Relations.
M&T Bank has a website provide more information on COVID-19 resources, including PPP.