A discussion about the Paycheck Protection Program (PPP) from an SBA Lender’s Perspective.
Business Development Officer
at Business Finance Capital
1. The PPP experience has been a challenge from the perspective of a borrower, but what has the experience been like on the lending side? How has your job changed in the last few weeks?
SC: Though the PPP program has had its challenges, this is “business as usual” for an SBA lender. SBA lending tends to be robust whether the economic cycle is at its peak, or at its trough, but as a lender it can also be a challenge because the regulatory landscape is often changing, while the products remain in high demand.
It has been extraordinarily busy on the lending side not only because of the PPP program, but because SBA’s visibility in the media. It has certainly helped boost ALL of SBA’s wonderful programs that are currently available.
My job has changed because I am not only assisting businesses that are looking to purchase new buildings or refinance their existing buildings but I am now taking time to be a helping hand in providing assistance with PPP applications and continuing to be a resource for businesses in need. Our team’s focus has been keeping our existing clients motivated to succeed in this tough environment, and walking them through the benefits of the CARES Act and what it may mean for them.
The CARES Act has provided immediate relief to our existing borrowers by covering 6 months of 504 loan payments and will keep our owner user purchase and refinance market strong, by covering 6 months of payments on newly funded deals through September 2020. It has been rewarding to be able to offer our clients and partners this extraordinary benefit on top of an extraordinary program.
2. What has been the most difficult thing you’ve encountered in this process?
SC: I just closed a deal this week for a Women’s Cancer Center. The last piece of the puzzle was the appraisal report. The report was running late and found out it was due to the appraiser’s father passing away – it was very sad news. Though delayed, the appraisal company provided the appraisal report and we were able to fund a Cancer Center that could bring hope and treatment to many women.
There are many stories of people being affected by Coronavirus (physically, mentally, emotionally) but it is important to focus on your health and the health of the people around you and abide by the Shelter-in-place ordinance. If we all stay positive, we can get through this together.
3. What has been the most positive thing about the process?
SC: The best news I could tell my clients, who’ve had their loan funded, was that they would be receiving debt relief, not deferment, but 6 months of debt forgiveness. Borrowers have been so thankful and some almost in tears to find this information from me as it will help sustain their business during the pandemic.
4. What do you foresee for your clients in the months ahead? Has your role with respect to your clients changed for this year?
SC: I foresee my small businesses will have to be creative, try to figure out ways do business, and learn about programs that will help sustain their company in the next coming months. My role as a source of information for Commercial Real Estate Lending and SBA Programs for my clients has not changed – my passion is helping small businesses grow.
For a link to the above article, visit https://aeiconsultants.com/qa-series-ppp-from-an-sba-lenders-perspective/