BBVA USA today announced it will be one of the first banks in the U.S. to begin processing customer applications for the Paycheck Protection Program, a key small business relief component of the recently passed CARES Act and administered through the Small Business Administration (SBA).
The Paycheck Protection Program allows businesses with fewer than 500 employees to borrow money from government guarantee lenders to fund up to 2.5 times their monthly payroll and other employee expenses, including health insurance and retirement coverage. If all employees are retained throughout the designated time period, businesses may be eligible to have their loan balances forgiven.
Dobers: "During this challenging time, we want to do everything we can to help small business customers..."
“We are proud to be among the first banks prepared to process these applications, because we recognize how important this funding will be to small business customers,” said BBVA USA Executive Director of Business Banking Elizabeth Dobers. “During this challenging time, we want to do everything we can to help small business customers navigate the process and quickly help them secure the money they need before the nearly $350 billion allocation is gone.”
The bank will begin accepting applications beginning April 3, 2020, and BBVA small business customers should expect to receive an email today containing details on the application process. Commercial and Wealth business customers should work with their relationship managers directly. Regulators have suggested that borrowers submit applications with their current financial institution to speed loan processing and funding.
Impacted small business customers can also reach out to their bankers to discuss options including payment deferrals and extensions, as well as potential fee waivers. In addition, small business owners in all U.S. states, Washington D.C., and territories may be eligible for low-interest federal disaster loans for working capital, as well as Economic Injury Disaster Loan advances of up to $10,000 to provide economic relief to businesses currently experiencing a temporary loss of revenue.
Clarkson: "BBVA has always been heavily focused on small businesses, recognizing that entrepreneurs and small business owners are the backbone of our communities."
“BBVA has always been heavily focused on small businesses, recognizing that entrepreneurs and small business owners are the backbone of our communities,” said SBA Division Manager for BBVA Greg Clarkson. “Our experience and understanding of the SBA process gives us a bit of an inside track, navigating through government processes and funding loans quickly.”
BBVA USA has been recognized as one of the leading small business lenders by the SBA and ranked 8th nationally in terms of dollar volume of SBA loans originated, based on financial data for fiscal year 2018.
For additional information regarding BBVA’s COVID-19 response for small businesses, as well as application details for the Paycheck Protection Program, visit here.