OakNorth helps Customers Bank increase its PPP commitment to support US SMEs

Monday 13 April 2020 08:51 CET | News

Customers Bank has processed loan applications totalling more than USD 200 million to help save American businesses.

Furthermore, the bank is expanding its capacity to process loans under the federal Paycheck Protection Program (PPP). PPP is the hallmark of the Coronavirus Aid, Relief, and Economic Security (CARES) Act adopted by Congress and signed into law by President Trump on Friday, March 27, 2020 with the express purpose of helping Americans and the organisations that employ them under the COVID-19 pandemic. 

The Bank’s SBA Government Guaranteed Lending and Small Business teams use PPP to get capital flowing in the economy. The bank teamed up with OakNorth to offer the financial tool. The PPP provides financial assistance in the form of a ‘loan’ of up to USD 10 million, but large portions of the ‘loans’ will be forgiven if payroll is maintained during the crisis or restored by June 30, 2020.

Eligible businesses can apply for an amount up to 250% of average monthly payroll, subject to some limitations. The loan funding can be used to meet payroll, buy health benefits, pay rent and utilities, or pay the interest on a mortgage or qualifying debt.

The most important eligibility criterion is that the applicant has fewer than 500 total employees. Special consideration for the hard-hit accommodations and food service industries.

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Keywords: Customers Bank, loans, SMEs, financing, US, COVID-19, OakNorth, US
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech