Through participation in the Small Business Administration’s Paycheck Protection Program, Nodaway Valley Bank has helped provide a financial lifeline to businesses and organizations impacted by the COVID—19 pandemic.
Many retail businesses experienced a steep decline in revenue during March, April and May of 2020, as a result of Shelter-in-Place ordinances enacted in larger communities and the public’s general reluctance to risk personal exposure through close contact. Not-for-profit organizations including churches, museums and performing arts groups were similarly impacted as the country’s economy entered a freefall. In most cases, revenue has not fully returned to previous levels.
Nodaway Valley Bank took an early lead in promoting Paycheck Protection Program loans to help stabilize the local economy by staving off potential employee layoffs and business closures. As a result of its diversified commercial customer base, the bank processed more than 700 loans ranging from a couple of thousand dollars to several million.
The Paycheck Protection Program provides a forgivable loan equal to eight weeks of payroll and benefits, provided employment levels are maintained during the covered period. “The federal government’s goal was to push out cash as quickly as possible to replace lost business revenue,” commented Executive Vice President & Chief Lending Officer Seann O’Riley. “The network of banks like Nodaway Valley which have participated in other Small Business Administration loan programs provided an efficient nationwide system to facilitate the process.”
“As a ‘Main Street lender,’ we’ve been able to help a variety of businesses and institutions, ranging from sole proprietors, such as hair salons and small retail shops with one or two employees to large manufacturers with several hundred employees,” O’Riley said. The bank estimates that the Paycheck Protection Program loans it has originated cover more than 8,000 jobs in the communities it serves.
The bank has also offered loan payment deferrals when warranted. “During this challenging period, we’ve tried to be proactive and keep things simple and efficient so our customers can focus on their business,” O’Riley stated. “Keeping an eye on the economic pulse of our market and trying to understand our customer’s most urgent needs is probably one of our most important roles as a community bank.”