Guest Commentary By Samantha Vance, Onovative
How to Maximize New PPP Loan
Relationships
Over the course of the past year, banks took the spotlight for dedicating countless hours to ensure the survival of communities across the nation. You seamlessly adjusted operations to best serve your communities in safe and healthy ways. You maintained and excelled at constant communication with your account holders. Te Onovative team applauds you and your teams for all the tremendous efforts during the past 14 months. Trough news outlets and personal stories, the world got a preview of what we have known for years serving this industry — community financial institutions are the backbone for many towns and neighborhoods across the United States.
SMALL BUSINESS IMPACT In a time of great need, many small businesses recognized the value in the commitment and service from community financial institutions. Your teams leaped to secure funding for small businesses from the Paycheck Protection Program. According to the Federal Reserve, 91% of small businesses applied for some type of emergency funding, and almost half of
22
mobankers.com
those requests were handled by small banks. An overwhelming 40% of loan dollars and 32% of loans approved for PPP Round 2 so far were generated from community banks and credit unions.
Not only did you deliver, but you also provided a superior customer experience to both your new and existing relationships. A recent Federal Reserve report cites that 79% of independent businesses that used community banks to process their PPP loans were satisfied with their overall experience, compared with 67% for large banks and just 49% for online lenders. Te Federal Reserve also reported that 95% of borrowers who went to a large bank for their PPP loans were existing customers of the institution while nearly 20% of small banks’ PPP borrowers were new to their institutions.
Te high level of customer service provided by community banks during the pandemic led to referrals for PPP loans and new account openings. Trough all the uncertainty of
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32