Guidance From Your Local Community Banker | Worthington National Bank
Michael Jarrett, President of Worthington National Bank's Downtown Arlington Branch & GSWIDA Board Member
Lends his expertise and advice to small local business executives navigating the Payment Protection Program, which is a slice of the many resources under the CARES Act umbrella
One of the most important elements of the CARES Act is an initiative called the Paycheck Protection Program. The PPP, as it's now known, makes loans available to small businesses, which become grants if business owners keep their employees on the payroll. In effect, it's a lifeline in which the federal government will indirectly pay these workers' salaries for a while.
In an interview with GSWIDA Board Member Mike Jarrett, Mike suggests each business owner be prepared and ready by first being thoroughly familiar with the SBA guidelines for the program, and contact their respective CPA in determining eligibility and to assist with preparing the documentation required by their respective financial institution ... Those guidelines can be found on the SBA website at www.sba.gov.
Finally, he recommends that after becoming familiar with SBA guidelines the business owner should contact their existing bank of account to see if they are a certified SBA lender and are they participating in the program as not all banks are, and some have already reached their institutions threshold both in amount and number.
► Each financial institution will have their own policy and procedures for handling applications.
► Each financial institution will require different information in addition to the basic SBA application for the program.
► The applicant needs to be sure that the information submitted is as complete and accurate as possible as otherwise submission to the program will be delayed.
All applicants should be patient due to the simple fact that financial institutions participating in the program are swamped with applications and it will take time to underwrite each one received, time to submit and receive approval from the SBA, and time to have loan documents prepared for signature.
And, if you are not satisfied with your financial institutions response, consider contacting Worthington National Bank because Small Business Lending is our specialty. We are locally owned and operated and proud to say our entire bank, including lobby services, is open and ready to do business.
Michael Jarrett, President
Worthington National Bank
200 West Main Street • Downtown Arlington