SYRACUSE, N.Y. (WSYR-TV) — The Paycheck Protection Program (“PPP”) authorized up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis.
On Thursday morning, the emergency small business lending program, run by the Small Business Administration, officially ran out of money.
Treasury Secretary Steven Mnuchin and Democrats have been talking to try and reach an agreement on a package that will immediately increase funding for the program.
M&T Bank is one of the leading SBA loan lenders in the country.
Before the program ran out of money the bank was able to:
- Get $6.4 billion in PPP funding approved for 27,711 businesses employing more than 600,000 people.
- In the Syracuse/Utica region: 1,660 loans approved for $371 million.
- Last year, M&T approved 1,449 SBA loans—it did more than 27,000 in a week.
“It’s amazing, you think $349-billion, yes you think that’s more than enough,” says Allen Naples, Regional President for M&T Bank CNY Region.
With businesses across the region closed up or greatly reducing operations, many jumped at the chance for some help, even as hard as it was to obtain one of these loans.
Naples explains, “It has to be so precise. For the banking industry we’re basically the conduit for SBA so we have to make sure that it’s done correctly. And us, like most banks, I’m assuming, we’re just not built for this kind of volume.”
M&T started with 300 people dedicated to processing these loans and quickly doubled that to get the work done.
“I’ve had customers, large customers to very small customers down in Armory Square calling me on the phone saying, crying because they’re laying off half their force,” he tells NewsChannel 9.
He adds, “We’ve got about 200 that didn’t make it through, so we’re going through now and doing all the due diligence, calling the customers back, correcting any issues that have to be corrected, and assuming they say yes, whatever day it is, and that window opens those are the first ones that go through, and then will start accepting other applications.”
M&T Bank will direct $150,000 to support coronavirus relief efforts in Central New York and the Mohawk Valley, the bank and organizers of the Mohawk Valley COVID-19 Response Fund and the Central New York COVID-19 Community Support Fund
The charitable investments will bolster the two regional funds, which were launched to address the local impact of the global outbreak.
Both funds are designed to rapidly deploy resources to nonprofit organizations that are addressing critical human services needs in communities significantly impacted by the pandemic. As urgent issues and hardships arise, these funds will help.
Through the M&T Bank/Partners Trust Charitable Fund (MTPT), M&T will provide $100,000 to the Mohawk Valley COVID-19 Response Fund, which was created by the Community Foundation of Herkimer and Oneida Counties and the United Way of the Valley and Greater Utica Area.
Additionally, M&T will donate $50,000 through the M&T Bank Charitable Foundation to support the Central New York COVID-19 Community Support Fund, which was launched by the Central New York Community Foundation in partnership with the City of Syracuse, Onondaga County, Allyn Foundation and United Way of Central New York.
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