Guidance From Your Local Community Banker | Worthington National Bank

News Date: 
04/17/2020 - 2:30pm

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 $2.2 trillion 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.

There was, however, one key flaw that emerged almost immediately after the economic aid package passed: Congress had allocated $349 billion for the PPP, and that wouldn't be nearly enough. Indeed, the question wasn't whether the program would run out of money, but when.  On Wednesday, the SBA website read that it is "unable to accept new applications for the Paycheck Protection Program based on available appropriations funding. Similarly, we are unable to enroll new PPP lenders at this time."   SBA was nearing a ceiling for loan committments on Wednesday morning, with more than 1.3 million loans given approval at a value of more than $296 billion. By Wednesday evening, $315 billion had been approved

In an interview with GSWIDA Board Member Mike Jarrett, Mike states that Congress is being asked by the President, the Department of the Treasury and millions of small business owners for another round of funding of at least $250 billion. Assuming Congress will agree on the parameters for additional SBA Payment Protection Program funding, Mike stated "You could build in a caveat that although the initial round of funding has been exhausted that a second round is being negotiated as we speak. Just use that as your lead, be prepared and then plow ahead."

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 in the event the second round is funded.  Those guidelines can be found on the SBA website at

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
(817) 303-6064

Worthington National Bank
200 West Main Street • Downtown Arlington