Managers at Texas Citizens Bank and Texan Bank said their employees worked around the clock to keep up with demand for Paycheck Protection Program loan processing. (Justin Howell / Community Impact Newspaper)
The coronavirus pandemic has given new meaning to the term “bank hours”, bank managers said, as Houstonians apply for millions of Paycheck Protection Program loans to keep their businesses open.
The Coronavirus Aid, Relief and Economic Security Act (CARES Act) contains several programs administered by the US Small Business Administration, including the Paycheck Protection Program. There were two waves of funding. The program is planned helping small businesses Retaining employees as the coronavirus spreads nationwide.
Kristi Koncaba, President and Chief Operating Officer of Texan Bank, said in an email that the pandemic and its demands have allowed the bank to focus on processing the PPP loans. Texan Bank had to act quickly to prepare to help customers, which is not easy based on the information available, she said.
“Everyone was hands on deck first to quickly set up a process and procedure,” she wrote. “The CARES bill was passed and we were expected to be ready within a few days. In addition, the instructions from the SBA and the Treasury Department were minimal and occurred little by little each day. “
The bank approved 470 loans and loaned nearly $ 50 million on May 7, Koncaba said. The average loan size was $ 104,642 with a median loan size of $ 33,600. If companies use the loan proceeds “as they should (to save jobs),” Texan Bank will have saved more than 5,500 jobs in the Houston area, Koncaba added.
“We are incredibly proud of our team,” she wrote. “That might not look like much compared to a big bank, but as a small community bank like Texan Bank, it’s a big deal.”
Texan Bank has five Locations in Houston. The bank processed loans as available and approved and funded loans in amounts ranging from $ 2,000 to over $ 2 million, Koncaba said. Loans are processed until the incentive expires, she said.
“The team worked late every day – including weekends and Easter Sunday – to draw, approve, process and fund these important job-saving loans,” Koncaba wrote. “It was a busy and stressful time, very frustrating at times, but we feel so blessed that we have been able to offer our community a product that will help local small businesses save jobs and possibly keep their doors closed.”
Texas Citizens Bank, which has two Banking centers 479 PPP loans totaling $ 97 million were processed in the Bay Area and one on Rice Boulevard; 297 of these loans were in the first round and totaled $ 73 million. and the other 184 loans were in the second round, totaling $ 24 million, TCB marketing strategist Camille Trent said in an email.
TCB’s chief operating officer, Jimmy Allen, said in an email that the types of companies that apply, as well as the amount they have applied for, vary widely. The types of businesses in the mix included medical offices and clinics, emergency medical facilities, employee recruitment firms, retailers, and legal and real estate services. As with Texan Bank, applicants at Texas Citizens Bank have been processed based on availability and their loan amounts have been qualified according to Small Business Administration guidelines on wages and salaries, Allen said.
Even before the Paycheck Protection Program officially opened on April 3, Texas Citizens Bank was inundated with requests for PPP loans, according to a press release.
Duncan Stewart, chairman and chief executive officer of Texas Citizens Bank, said in the press release that the bank had hired additional SBA experts to assist with processing and, like Texan Bank, staff worked long evenings and weekends to get around approve and process the loans.
“This is a historic time,” Stewart said in an April 23 news release. “In many years, [the team] I can look back with great pride on the role they have played over these weeks in saving companies and their employees’ livelihoods. “