With the Small Business Administration’s announcement today that funding has been exhausted, Nodaway Valley Bank has ceased accepting PPP applications.
During the past year, NVB has funded more than 1,600 PPP loans totaling $91.8 million, covering an estimated 12,000 jobs throughout northwest Missouri. The SBA has paid off approximately $52.3 million in loans to date. As their covered payroll periods expire, the bank will assist remaining clients with preparation and submission of their forgiveness applications.
NVB bank assembled a special team of lenders to guide clients through the online application and forgiveness process. DocuSign was used to exchange documents and signatures electronically.
“This was a new experience for us and our customers, and it proved to be efficient and convenient,” commented Seann O’Riley, Chief Lending Officer. “I anticipate we will continue to utilize similar documents throughout the bank, even as business returns to normal.”
As a result of closed lobbies, more applications for personal and residential real estate loans have been channeled through the bank’s online loan application program, a trend O’Riley expects to continue even though all lobbies have re-opened. “Loan customers have also become accustomed to making an appointment,” O’Riley said.
“Online loan applications are immediately assigned to a loan officer for review and follow-up, so the customer receives the same amount of attention whether they’re at home or at the lender’s desk. Furthermore, clients can submit back-up documents electronically instead of making a trip to the bank,” he said. “The pandemic has ushered some efficiencies in our application process.”
Initially, the Paycheck Protection Program targeted business and non-profit organizations employing 500 or fewer people. It was expanded to help self-employed and farmers. PPP clients which experienced a 25% quarterly decrease in revenue could apply for a second round of PPP financing.
“This program covered a wide variety of commercial loan customers,” commented bank President Cort Hegarty, “and it proved to be a financial lifeline for businesses and people affected by closures and accompanying revenue declines. As a community bank, we are proud of our role and pleased that we could be of help.”