Brad Ritchie sees the Paycheck Safety Program as having been a invaluable software for West Virginia’s small companies throughout the coronavirus lockdown.“They still have rent. They still have utilities. I think this loan is going a long way to keeping these people in business,” mentioned Ritchie, president and CEO of Summit Neighborhood Bank in Moorefield.Summit Neighborhood Bank is the working unit of Summit Monetary, one of many largest banking firms based mostly in West Virginia. It has a department in downtown Charleston and one at Southridge.The Small Enterprise Administration is in its second spherical of loans below this system, also called PPP. The primary spherical of loans discovered bigger companies benefiting from this system as a result of they’d the contacts and paperwork already in place. Summit was nonetheless capable of assist smaller companies within the first spherical, Ritchie mentioned.“We were able to get almost everybody that applied in Phase I except companies that applied on the Thursday the money ran out,” Ritchie mentioned.The second part has moved higher as smaller firms, significantly self-employed individuals, have been capable of submit functions for loans, Ritchie mentioned. Likewise, the typical loan request has been smaller on this spherical, he mentioned.At one level, the SBA locked out bigger banks from the appliance course of from four p.m. to midnight so smaller banks may get their requests processed, Ritchie mentioned. Additionally, in lots of instances, functions can obtain same-day approval if the supporting documentation is enough, he mentioned.As a result of loan forgiveness relies on the variety of workers who work within the eight weeks after the enterprise receives the loan, the PPP helps some companies greater than others. Thus, some companies are much less prone to apply, Ritchie mentioned.Accommodations and film theaters that laid off individuals throughout the shutdown usually are not prone to deliver them again within the subsequent eight weeks, so that they’re not making use of for loans in the identical manner different companies are, he mentioned.Ritchie praised Rick Haney, lending relations specialist for the Small Enterprise Administration in West Virginia, for his work in serving to companies with the PPP.In accordance with the SBA, by means of Might 1 a complete of seven,042 PPP functions had been permitted in West Virginia for second-round funding. These loans totaled $460,178,499 for a median of $65,348 per loan.Nationally, about 71% of loans within the second spherical have been for $50,000 or much less.As publicly traded firms have launched their first-quarter earnings stories, they’ve disclosed their exercise in PPP loans. By April 28, 2020, Summit had permitted 468 PPP loans totaling $83.eight million.As of mid-April, United Bank, which does enterprise in a number of states, had processed greater than 3,000 loans totaling greater than $900 million in PPP’s first part. That may be a median of about $300,000 per loan. United started lending cash once more when the second part started on April 27.Wheeling-based WesBanco, one other regional bank that operates in a number of states, lent a bit of over $700 million within the first part earlier than funding was exhausted. Earlier than the second part began, it contracted with a 3rd occasion processor and to arrange a extra automated system to course of loans sooner for Spherical 2.Metropolis Holding Co. of Cross Lanes, the mum or dad of Metropolis Nationwide Bank, didn’t present PPP numbers in its quarterly report, nevertheless it did say it had granted deferrals of about $82.2 million for mortgage debtors and about $377.9 million for industrial debtors within the quarter due to the coronavirus scenario.
Jim Ross is growth and opinion editor of The Herald-Dispatch in Huntington.