By Holden Wilen
April 13, 2020
The Small Business Administration has approved more than $1.5 billion in small business relief loans to be disbursed by banks in Maryland, according to figures obtained by the Baltimore Business Journal.
A report compiled by the SBA’s Baltimore District Office shows that as of April 11, banks have been authorized for 4,692 loans through the federal government’s Paycheck Protection Program (PPP). Nationally, the SBA has authorized 724,000 loans for about $184 billion.
The totals for Maryland do not include loans authorized in Montgomery and Prince George’s counties because they are considered to be part of Greater Washington.
Bankers say they continue to get flooded with applications and the SBA is working frantically to authorize them. The numbers provide a point-in-time snapshot of the massive demand banks are getting for the loans, and are expected to already be even higher.
The PPP program, created under the $2 trillion stimulus package passed by Congress and signed by President Donald Trump, intends to provide fast cash to small businesses impacted by COVID-19 to use for payroll and other expenses such as utilities and rent. The loans, distributed through banks, are forgivable and have a 1% interest rate.
Baltimore-based Howard has received authorizations for 516 loans in Maryland, the most of any bank. The loans total $139.3 million.
Charlotte-based financial giant Truist Bank, formed by the merger of BB&T and SunTrust, has received authorization for the most dollars — $250.4 million for 383 loans.
The totals do not necessarily represent how much the banks have disbursed. Banks continue to finalize their processes for how to actually get money into the hands of business owners.
Here is a look at some of the other things that stood out with the snapshot numbers.
- First National Bank of Pennsylvania and Orrstown Bank round out the top five. FNB, which has been one of the region’s largest banks for several years, has been authorized for 235 loans totaling $107.3 million.
- M&T Bank, the biggest SBA lender in Greater Baltimore for the last 12 years, has authorizations for 99 loans totaling $14.7 million.
- Bank of America, the biggest bank in Greater Baltimore by deposit market, has authorizations for 28 loans totaling $5.7 million.
- PNC, another one of the area’s biggest banks, has authorizations for 33 loans totaling $24.6 million
To read the full story, visit Baltimore Business Journal’s website.
Source: Baltimore Business Journal