– The Small Business Administration (SBA) made the Paycheck Protection Program (PPP) available on April 3 and by April 16, the SBA announced the funding had run out. However, Congress has since cleared another $310 billion in relief for small businesses and C&N is still accepting new applications for these loans. Between the two rounds of funding, C&N has received SBA approval on loans for 900 local businesses totaling over $98 million, saving the paychecks of 11,255 workers to date.
“We were pleased that Congress approved the second round of funding for our local small businesses,” said Brad Scovill, C&N President & CEO. “While we were able to help 500 businesses through the first round, we still had applications that weren’t yet processed before the first round of funding ran out. Now, we’ve been able to give hope back to our business clients who thought they couldn’t get the help they need.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed to provide emergency relief for small- to medium-sized businesses disrupted by COVID-19. As part of the federal relief package, the Paycheck Protection Program serves as an extension of the Small Business Administration (SBA) 7(a) loan program. It allows financial institutions to provide federally-backed, forgivable loans to eligible businesses in order to retain workers and pay bills during the pandemic. Businesses can get low-interest loans of about two and a half times their average monthly payroll.
In addition to the PPP, C&N has extended support to its customers in other ways as well, including restructuring existing loans, helping with cash flow and extending additional lines of credit.
Shawn Bryant, CEO of Wellsboro Hotel Company in Wellsboro, has first-hand experience with the incredible efforts of C&N’s lending team. He said, “I have 40 very thankful employees who have been able to collect pay from us, helping them stay on their feet while we were largely shut down during this crisis. The entire Wellsboro Hotel Company workforce really appreciates C&N’s diligent efforts and work after hours to make sure our loan came through.”
Scovill said the Bank has received approval on 100% of the completed and qualified applications it has accepted to date. Helping these customers navigate the upcoming forgiveness process will require the team’s ongoing engagement in the coming months. “There’s still plenty of work to be done, but we intend to make a real difference for our customers through these programs. C&N’s ability to provide relief at this time will have a lasting impact on the livelihood of our local businesses, economies and neighbors.”
Please visit cnbankpa.com/COVID-19 for the most up-to-date information.