Page 63 - BusinessWest October 12, 2020

April, “that two weeks was absolutely crazy because you had people look- ing for loan deferrals, and the bank examiners were very friendly to both the banks and borrowers to try to help these people out,” he recalled. “We were just trying to help our customers. You’re not worried about loan origina- tion; you’re just worried about getting people through the unknown and the craziness.”
The first Monday in April, the bank received about 500 PPP applications, and about the same number the next day.
“We needed to get all hands on deck,” Miles told BusinessWest. “We were still waiting on guidance from regulators and the Treasury Depart- ment. We had people afraid for their livelihoods, their families, and every- thing. It was organized chaos.”
The bank got $185 million in PPP loans approved in that first round, what he called a “herculean task.” The second round, several weeks later, was much less chaotic. “That was more for the smaller businesses — a lot more applications, but smaller in dollar size. We were able to keep up with those because we’d been through it, and they weren’t as complicated.”
“For now, this has put a lot of capital in the banks and a lot of capital in businesses in our region and beyond. A lot of our customers are in good shape right now.”
Oleksak said the PPP was a critical lifeline for a lot of people. “There was kind of a mass panic there wouldn’t be a round two, which put a lot of pres- sure on the banks and our customers, trying to rush to get them into a pro- gram that was not very well-defined from the outset,” he recalled. “Then round two came along, and everyone who needed funds was able to access them, and that made a big difference.”
Leach said the widely reported chaos was quite real, but the larger story was a positive one.
“In spite of the controversy, and the people who thought they were mak- ing up the rules as they went along, I think the PPP was very functional,” he said. “We’re seeing a lot of customers well-capitalized right now, which is the untold story nationally.
“Maybe that changes and this is just a Band-Aid,” he added, due to the lack of clarity about the next few months, from fears of a second COVID-19 surge to the limbo status of further federal stimulus. “But, for now, this has put a lot of capital in the banks and a lot of
capital in businesses in our region and beyond. A lot of our customers are in good shape right now.”
Lee Bank processed 348 PPP loans and has submitted more than 100 for- giveness applications, although some customers are waiting to see if the federal forgiveness guidelines change, specifically whether “they do a sweep- ing approach where everything under $150,000 is forgiven with a very, very simple forgiveness application.”
Again, borrowers want clarity.
Still, Leach came back to the positive impact his bank was able to make with the PPP — and also with loan-payment deferrals for about 240 customers, with
about $60 million deferred in total.
“In a bank that has $400 million in total assets, you can see that’s a good chunk,” he said, adding that only a fraction of those customers requested a second deferral period.
Oleksak and Miles both reported similar trends, with requests for con- tinued deferrals dropping after the first 90-day period.
“Thirty days before the first defer- ment was up, we contacted people, and 85% to 90% said, ‘we’re good, we’re not going to be looking for a deferral going forward.’ So that made us feel really comfortable,” Miles said. “With the PPP and the deferrals, it bridged
the gap for customers.”
“We’re being very sensitive,” added
Kevin O’Connor, Westfield Bank’s exec- utive vice president and chief banking officer. “We’ve been very involved with them, understanding their needs and how the bank can work with them.”
While borrowers in the broad hos- pitality sector continue to struggle, for obvious reasons, most customers have come through the past seven months well with the help of PPP and loan- payment deferrals, Miles added. “The main ones hurting are the ones being affected by the phases and the roll- outs — restaurants, bars. They’ll take a while to get back on their feet.”
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