Bank of America says 70% of Paycheck Protection Program loans in the Valley went to businesses with fewer than 10 employees
FRESNO – Despite reports of large corporations taking federal aid away from small businesses, one of the nation’s largest banks reports that’s not the case.
Bank of America reported last week that it has processed more than $165 million in Paycheck Protection Program (PPP) loans in Fresno, Tulare and Merced counties through May 15, according to Colleen Haggerty, head of the bank’s West market including California, Arizona, Nevada and New Mexico. Haggerty said 70% of the loans went to businesses with less than 10 employees.
“Nationally, we have processed 315,000 PPP applications as of May 15, with 81% going to companies with less than 10 employees,” Haggerty said.
In California, Bank of America confirmed more than 37,000 were funded for over $3.2 billion. The bank is still processing 17,000 loans, is ready to begin another 3,700 and accepted over 71,000 applications. Nationwide, threee quarters of the more than 265,000 small business loans were for less than $100,000 and 93% were for less than $350,000. Its 213,000 promissory notes to small businesses, indicating Small Business Associaiton (SBA) loan approval makes Bank of America the No. 1 SBA lender in the second round of funding.
“We processed applications for more than 250,000 small businesses during the second phase of this program, and we continue to receive and process new applications. We are happy to see the SBA has been processing submissions at a faster rate, and hopefully there is sufficient funding for everyone in need,” said Dean Athanasia, head of Consumer and Small Business at Bank of America.
Bank of America continues to provide non-government-related lending to small businesses. According to the Federal Deposit Insurance Corporation (FDIC), Bank of America is the No. 1 lender to small businesses in the United States.
While no fees related to the PPP have been received from the SBA, the company announced that net proceeds related to PPP fees will be dedicated to support small businesses and the communities and nonprofits we serve.
In addition to lending through the PPP, Bank of America is providing support to customers including:
1,320,000 deferrals of mortgages, credit card and auto loans; including 160,000 mortgage deferrals – foreclosure sales have been paused.
Offering customer refunds for late fees, overdraft fees, non-sufficient fund fees and CD early withdrawal fees.
10.5 million government assistance payments (Economic Impact Payments) processed to date, totaling -$18 billion.
$2.4 billion in credit extended to small business clients in the first quarter of 2020, up 11% year over year apart from the government’s lending program.
Bank of America is supporting communities where our clients live and work:
$100 million commitment to local communities to purchase medical supplies, food and other priorities in addition to the $250 million provided each year.
$250 million in capital and $10 million in philanthropic grants to community development financial institutions (CDFIs).
For questions related to a Bank of America account and the Paycheck Protection Program, clients can contact us at [email protected]