Thanks to the extraordinary efforts of our lending team on the Paycheck Protection Program (PPP), United Southern Bank was able to approve a total of $36,434,000 in SBA loans for 450 local businesses! In just 3 weeks, our dedicated staff and lenders processed hundreds of applications, closing the same number of loans we usually do over 6 months!
Some lenders closed their loans outside with social distancing and others provided the much-needed funding through the drive-thru lanes. This was an exceptional effort for a bank of our size, and we cannot thank our staff enough!
What do these loans mean for our community? They mean that many Lake and Sumter County workers will continue receiving a paycheck. They will be able to buy groceries, pay their rent and utilities, keep their home WIFI going so their kids can learn virtually, and perhaps order take-out from a struggling restaurant.
In spite of the negative press, most businesses that were approved need these funds. The loans were based on previous payroll totals and the proceeds will be used to pay employees their full payroll amounts, even if they are not working or have reduced hours. If the money is spent by the businesses appropriately within the 8-week period following the closing, the loan will become a grant. The nationwide average loan size was $206,000. USB processed loans for a wide variety of businesses in a wide variety of amounts. Some were for less than $1,000, while others were for much more. These loans put money in the hands of our neighbors so they can put it back into our economy.
Although the first round is closed, Congress recently allocated an additional $320 billion in PPP funding. While we have a stack of applications ready to go as soon as the second round opens, we encourage businesses considering applying to call and speak with one of our lenders.
The second round of funding is likely to go quickly, and we would love to help more of our local businesses see relief.