During difficult financial times, community banks have a way of coming through to help support their small businesses and communities. The COVID-19 pandemic is no exception. Community banks are allowing relief by providing deferments on loans, no overdraft fees, and helping to distribute money supplied by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On Friday, March 27, the CARES Act became U.S. law. This is the most substantial stimulus bill (2.2 Trillion) in American history, and it put into motion an effort to provide financial relief for millions of Americans who have been impacted by the COVID-19 pandemic by providing $349 billion in the new Paycheck Protection Program (PPP). This will help the 26.5 million Americans, who have filed for unemployment since March 14, and the small businesses who employ them.
This new PPP gave small businesses a loan program designed to provide vital cash-flow assistance through 100 percent federally guaranteed loans to small businesses that maintain their payroll during the COVID-19 pandemic. All existing SBA-certified lenders were given delegated authority to process PPP loans quickly. This includes community banks, who have done a great job of distributing these funds to small companies and institutions that were in dire need of financial support during this pandemic. The banking industry did such a great job of distributing these funds that all $349 billion was allocated in the first 14 days.
Recently, bipartisan legislation was passed, which includes an additional $310 billion to restart the Paycheck Protection Program, with $60 billion being set aside for community banks. This $60 billion was highly advocated by community bankers and the Independent Community Bankers Association (ICBA). Rebeca Romero Rainey, President and CEO of ICBA, released a statement saying, “ICBA thanks Congress for passing this critical legislation restarting the Paycheck Protection Program with an additional $310 billion and dedicating at least $60 billion of the funds for loans from community financial institutions. As relationship lenders, community banks look forward to continuing to utilize the PPP to continue meeting the need of the Main Street small businesses we serve.” The bill allocates at least $30 billion of the PPP to institutions under $10 billion in assets and another $30 billion for institutions between $10 billion and $50 billion in assets. These funds will be crucial in making sure that small businesses from small communities will continue to succeed during this pandemic and in the future.
About Automated Systems, Inc.
Since 1981, Automated Systems, Inc. has been a leader in providing innovative core banking, digital banking, and data processing solutions to community banks nationwide. An array of integrated applications provide partnered banks with tailored, cost-effective, competitive choices. ASI delivers industry-leading technology backed by unparalleled in-house conversion, training and support teams; paving the way for progressive, top-notch customer service. ASI corporate headquarters are located at 1201 Libra Drive, Lincoln, NE 68512, 1.800.279.7312. For more information about banking solutions from ASI, visit www.asiweb.com.
About Insite Data Services
IDS data application hosting services combines secure and cost-effective core banking applications, enterprise-class servers and storage, and proven virtualization technology. IDS hosts all of the bank’s servers in secure data centers that use state of the art security systems including identity verification and biometric scanning. Insite Data Services also offers IDS On-Time, a full-service solution dedicated to back-office bank processing. These operations experts allow partnered banks to focus on their most important asset, their customers. For more information visit www.insitedataservices.com.