PPP Loans For Small Businesses
Apr 15, 2020
Beneficial State Bank, a FDIC-insured mission-driven bank and preferred SBA 7(a) lender, is processing Paycheck Protection Program loan applications representing payroll for almost 10,000 employees and over $100 million of potentially forgivable business loans
April 15, 2020, Oakland, Calif. -- Beneficial State Bank is pulling out all the stops to help small businesses and nonprofits in need of Paycheck Protection Program (PPP) loans--rapidly implementing a new loan processing platform integrated with the Small Business Administration, redeploying over 50% of its Commercial & Business Banking staff and over 15% of its total staff to process PPP loans, and supporting applicants in Oregon, Washington, and California who are suffering from the economic fallout of the COVID-19 crisis.
Beneficial State Bank has been awarded SBA approval for nearly 230 PPP applications worth $76.5 million, with 400 in-process from current and new customers collectively seeking more than of $100 million in loans. The bank began funding the loans today. In total, these businesses employ almost 10,000 people that would be paid via the proceeds of these emergency relief loans.
The bank has so far analyzed a third of its approved PPP applications and found nearly 20% are businesses owned by women or people of color, more than 35% are nonprofits or B Corporations, and almost 90% are mission-aligned, with funds going to businesses that support job development, health and wellness services, social justice, education and youth services and environmental sustainability.
Soon after business owners were able to apply for PPP loans on April 3, Beneficial State instated a technology platform and systemized approach to be able to process the 2,000 inquiries received. This enabled the bank to better process applications.
“The influx of applications has been immense--we’ve seen more than two-years’ worth of business loan inquiry volume come flooding in within a matter of days--and the guidance from the federal government has been ambiguous and piecemeal. We took measures into our own hands and instated critical processes to ensure Beneficial State Bank was better positioned to handle the volume,” said Randell Leach, CEO of Beneficial State Bank. “Our teams have been working around the clock to setup an efficient process and we are allocating additional resources to support our response to the community and provide access to these essential funds. We recognize the pressing need and we want to help as many people as we can, as quickly and efficiently as possible.”
Beneficial State Bank has dedicated over 50% of its commercial and business banking staff and over 15% of its total workforce to deploying the system being used to process the applications and loans, and expects that number to grow. Other staff are helping clients with additional needs during the crisis, including deferring loan payments, waiving fees, and hosting virtual financial wellness workshops.
“Business owners are understandably frantic to get this money, and we will continue fine-tuning our system in an effort to help as many people in our communities as we can,” Leach said.
As a federally certified Community Development Financial Institution and certified B Corporation, Beneficial State provides under-resourced communities fair and transparent banking services.
Beneficial State Bank (Beneficial State) is a state-chartered, federally insured bank with branches in California, Oregon, and Washington. Beneficial State serves the triple bottom line of people, planet, and prosperity for all, which involves serving its communities, supporting positive environmental outcomes, and achieving long-term financial sustainability. A unique ownership structure supports these strategic priorities: the bank’s capital is majority-owned by the nonprofit Beneficial State Foundation. This means its economic rights are fully aligned with, and permanently governed in, the public interest.
Beneficial State Bank is a founding signatory of the UN’s Principles for Responsible Banking, a member of the Global Alliance for Banking on Values, a Community Development Financial Institution (CDFI), Fossil Free Certified, and one of the world’s top-rated Certified B Corporations, awarded B Corp "Best for the World" status every year since 2013.