Through the end of May 6, Pinnacle Financial Partners has made $188.6 million in loans to companies in the Chattanooga area through the Small Business Administration’s Paycheck Protection Program.
This figure represents 1,009 local businesses that received emergency funding to pay their employees and essential bills during the ongoing COVID-19 pandemic.
“Chattanooga is a community driven by small business, and this crisis has stopped many of them in their tracks,” says Craig Holley, Pinnacle’s chairman in Chattanooga. “We want to help as many as we can so they can weather this storm and our economy can remain as stable as possible.
“You’re never going to execute an emergency response with 100% perfection, but the PPP and our associates have given an enormous amount of support when we need it most.”
The average size of a PPP loan from Pinnacle in the greater Chattanooga area is $186,942, with the vast majority of them coming in well below $350,000 each.
• 876 loans worth $71.5 million
• 87% of the loans Pinnacle made in Chattanooga
• Average loan size in this category was $81,600
• 124 loans worth $85.6 million
• 12% of the loans Pinnacle made in Chattanooga
• Average loan size in this category was $690,591
• Nine loans worth $31.5 million
• 1% of the loans Pinnacle made in Chattanooga
• Average loan size in this category was $3.5 million
Firmwide so far, Pinnacle has originated more than $2.4 billion in loans to nearly 14,000 small businesses. That’s $1.39 billion loaned to 7,758 businesses in Tennessee.
Hundreds of associates across the firm worked around the clock to process, review and submit those thousands of applications, clearing 6,000 in the first wave and the remainder after Congress approved the second round of funding for the program.
“The need from our clients is tremendous, showing just how far reaching this crisis has been,” says Terry Turner, Pinnacle’s president and CEO. “Fortunately, the federal government and America’s banks mustered their forces to meet the challenge. An emergency such as this required fast and decisive action that, despite its imperfections, showed how committed our industry is to supporting the economies we serve and the small businesses that drive them.”
These loans are made from Pinnacle funds and include an SBA guarantee. They are potentially eligible for forgiveness if used by the borrower for required purposes and within the allowed eight-week time period.
While the SBA has not yet issued all of the details on what will be required for forgiveness, Pinnacle is advising clients based on the language of the CARES Act and ongoing guidance from the Treasury Department.
“There are still a lot of questions we don’t have answers for yet, but the intent of the program is pretty clear,” Turner says. “I believe this law was intended to keep workers on payrolls, despite their employers’ businesses being negatively affected by COVID-19, and also to allow business owners to pay their most essential bills.
“For clients that follow the rules of the program, we encourage them apply for forgiveness.”
Pinnacle has hosted several online webinars for clients on PPP forgiveness. Those videos, along with more guidance, are posted at PNFP.com/PPPForgiveness.
Source: Pinnacle Financial Partners