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April 4, 2020PPP Nonprofit Loans – We Just Met With Two Approved Lenders
PPP Nonprofit Loans – We Just Met With Two Approved Lenders is a summary of our nonprofit’s meetings with two major SBA 7(a) approved lenders (well-known banks) to compare their processes and product. Their loan representatives were well-informed and transparent about what’s really happening behind the scenes. Here’s what we learned:
- Both lenders indicated the U.S. Treasury and Small Business Administration were having difficulty supplying lenders the information/infrastructure needed to get started.
- Despite the April 3rd open application date neither lender knew the date THEIR INSTITUTION would be begin processing applications.
- One of the two lenders had a hunch that they would be processing applications on Monday.
- Both lenders indicated they would only be providing PPP Loans TO EXISTING CUSTOMERS ONLY. (New customers need not apply if they are seeking PPP.)
- One lender indicated their application process would be PERFORMED BY THE APPLICANT using a custom website portal on their bank’s website.
- One lender indicated they are gathering customer documentation (see list below) and WOULD USE THEIR STAFF to process each application.
- They both indicated their competition, BANK OF AMERICA, was only processing loans for nonprofit customers who had PREVIOUSLY ESTABLISHED credit with BOA.
Both lenders provided a LIST OF DOCUMENTS nonprofits will need to organize
- Completed PPP Loan Application
- 2019 Form 990 Tax Return (2018 if 2019 is not available)
- 941 Tax Liability Detail 2019
- 941 Tax Liability Detail 2020
- Payroll Register 2019
- Payroll Register 2020
- Statement of Activity (P&L) 2019
- Statement of Activity (P&L) 2020
- Articles of Incorporation
- Utility Bills 2020
- Proof of Employees U.S. Citizenship
List of Approved SBA 7(a) Approved Lending Institutions – PPP Nonprofit Loans
First, there is some conflicting information about where to apply. Some SBA website information indicates that you MUST use an approved SBA 7(a) lender to apply for PPP. There is also conflicting information that the SBA may provide their own online application portal at some point. REGARDLESS, IT IS OUR UNDERSTANDING THAT YOU WILL FAIR MUCH BETTER WITH AN SBA 7(a) APPROVED LENDER THAN APPLYING DIRECTLY WITH THE SBA.
Here’s a list of the most active SBA 7(a) lenders eligible to participate in the PPP along with links where you can apply (or pre-apply) or receive more information once available. This is not a full list of lenders but a list of the most active, in alphabetical order. Please note that some of these businesses may not be ready to accept applications right on April 3, but they may include links for updates about when applications are available.
- 21st Century Bank
- America First FCU – Apply at this link by clicking Apply Now. You’ll need a business account first.
- Ameris Bank – Fill out an application here and submit to [email protected]. See more details.
- Atlantic Capital Bank
- Bank of America – A guide is posted here, but there aren’t many details on applying yet.
- Bank of George – See documents you’ll need here.
- Bank of Hope – Call 888-972-5363 for details.
- Bank of the West
- BankUnited – Begin collecting documentation now, including Form 941 from the most recent four quarters and verification of payroll cost and employees for the last 12 months. See updates here.
- BBVA Compass – Updates will be available starting April 3 here. See other options here.
- Berkshire Bank – They suggest filling out a Contact Us form because of high call volume.
- Byline Bank – Updates will be here. If you’re a current customer, contact your Portfolio Manager.
- Cadence Bank – Learn more.
- Capital One – Applications aren’t being accepted as of April 2. Updates will be posted here.
- Cathay Bank
- Celtic Bank – Celtic warns they may have to delay accepting applications due to the SBA not yet releasing initial guidance. You can start by filling out a form here.
- CenterState Bank – Complete a form here for updates
- Centerstone SBA Lending, Inc.
- Chase Bank – They aren’t currently accepting applications but will post updates here.
- Citizens Bank – Updates will be posted here.
- Comerica Bank – Call 888-444-9876. Updates will be posted here.
- Customers Bank – Complete the form at the bottom of the webpage for updates.
- East West Bank – Fill out the inquiry form here.
- Embassy National Bank
- Falcon National Bank – Phone numbers and emails to contact are listed here.
- Fifth Third Bank – You’ll need an online banking profile first and you can only apply online. See more details here.
- FinWise Bank
- FirstBank – Download an application here and then email it to your FirstBank banker.
- First Chatham Bank
- First Commonwealth Bank – Complete an application here and include 2019 Form 941 or Form 944 and a beneficial ownership form. Upload the application on their DropBox site or mail the application. See more details here.
- First General Bank
- First Home Bank – Start applying here.
- First-Citizens Bank & Trust Company
- First IC Bank
- First Financial Bank – Details will be posted here and First’s SBA clients will also get emails.
- First Horizon Bank – Updates here and contact your banker for more details.
- First National Bank of Pennsylvania – Updates here.
- First Savings Bank – If you’re a current banking customer, contact one of their lenders or call 1-833-372-4968.
- First United Bank – Apply here.
- First Western – Updates will be posted here.
- Five Star Bank – Contact your relationship manager for details, or see phone numbers near the bottom of the page here.
- Fountainhead SBF LLC – Fill out an application here to be entered into the processing queue. You’ll get a welcome email with details on more steps to take.
- Frost Bank – Plan ahead by gathering all the required documentation and then talk to your banker. More details are here.
- Fulton Bank – Applications will be accepted starting April 3. Download an application here, save it and email it to [email protected]. See details here.
- Hana Small Business Lending, Inc.
- Hanmi Bank – Details here.
- Harvest Small Business Finance, LLC
- HomeTrust Bank – Updates will be here.
- Huntington National Bank – See their PPP page here. They list what documentation you’ll need along with other relief programs.
- IncredibleBank – See details here.
- Independent Bank
- KeyBank National Association – Fill out a form here for updates.
- JPMorgan Chase Bank – They aren’t currently accepting applications but will post updates here.
- Live Oak Banking – Sign up here to see when they’re accepting applications.
- M&T Bank – Updates may be posted here. They also have an SBA loan page here, but it isn’t updated yet with CARES information.
- Metro City Bank
- Midwest BankCentre – PPP fact sheet and details are here. Call 314-631-550 or 800-894-1350 with questions.
- Midwest Regional Bank – A page here simply says not to email personal or financial information.
- Mountain Pacific Bank – Contact your loan officer at 425-263-3500 or wait for updates here.
- MUFG Union Bank
- NewBank
- Newtek Small Business Finance, Inc.
- Northwest Bank – Updates here.
- Old National Bank – Applications open April 3. Contact a loan officer for details.
- Open Bank
- Pacific City Bank – Their SBA loan page is here, but it does not list PPP options yet.
- Patriot Bank
- Pacific Western Bank – There’s no start date yet, but the bank recommends having payroll registers and financial statements ready. Learn more here.
- Peapack-Gladstone Bank – On this update, the bank says to email [email protected] for help.
- Peoples Bank – Complete a form here to be contacted.
- Pinnacle Bank – Talk to your Pinnacle financial advisor or find one here.
- PNC Bank – Click “Contact Us” for details.
- Poppy Bank
- PromiseOne Bank – Their website currently only talks about EIDL loans and not the new PPP loans, so it’s not clear if they’re offering these loans or not.
- Quantum National Bank – Applications will be posted here.
- Readycap Lending, LLC – Start the process here.
- Regions Bank – Updates here.
- Republic Bank – This page briefly mentions PPP along with other options.
- Royal Business Bank
- Seacoast Commerce Bank – Scroll down to the Protection Loan section near the end of the site and click on “Apply Here.”
- Seacoast National Bank
- Shinhan Bank America
- Stearns Bank National Association – PPP loan applications won’t be accepted until April 10.
- Stone Bank
- Sunflower Bank – Get updates here.
- Synovus Bank – You can apply online on April 3. Be notified here.
- TCF National Bank
- TD Bank
- The MINT National Bank
- Truist Bank d/b/a Branch Banking & Trust Co – Trustmark has a page about applying here.
- Umpqua Bank – Visit here for all relief options. Sign up here for PPP updates.
- UniBank
- Union Bank – Updates are posted here but nothing specifically about CARES as of the time of publication.
- United Business Bank
- United Community Bank – Sign up here for updates on PPP.
- United Midwest Savings Bank
- Univest – They’ll begin accepting loan applications on April 3 and April 10. Complete an online application here and send it to [email protected].
- U.S. Bank, National Association – Updates will be posted here.
- US Metro Bank
- VelocitySBA – See here.
- Wallis Bank
- Wells Fargo Bank – You’ll be able to apply online here.
- West Town Bank & Trust – Complete a contact form here for a pre-application. Get more details here.
- Zions Bank – An application will be here on April 3.
We Just Met With Two Approved Lenders – PPP Nonprofit Loans was first posted at INSIDE CHARITY
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Jimmy LaRose
Jimmy LaRose’s passion for “people who give” has inspired philanthropists around the world to change the way they invest in nonprofits. His belief that donors are uniquely positioned to give charities what they truly need – leadership rather than money – is the basis for his work with individuals, governments, corporations and foundations, in the U.S., Europe, Asia & Middle East. Jimmy, in his role as author, speaker, corporate CEO & nonprofit CEO champions all of civil society’s vital causes by facilitating acts of benevolence that bring healing to humanity and advance our common good. He and his beautiful wife Kristi are citizens of the Palmetto State where they make their home in Lexington, South Carolina.
28 Comments
What do you put in the Owner field if you are a nonprofit???
Beth,
Great question. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. On Tuesday we spoke to our lender. We completed the loan application yesterday. They invited us to forward our completed PPP Application and our 2019 Form 990 to them and to wait for further instructions.
On another note, we found out yesterday (March 3rd) that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.
Thank you NANOE 🙂
THANK YOU PAMELA…you’ve always been NANOE’s Great Champion!
https://NANOE.org
Thanks
Thank you David Scruggs. Please free to stay in touch and share with us what you learn! Warmly, Jimmy
[email protected]
Hi Jimmy,
Is it OK to apply at more than one bank. I realize I can only receive one loan, but I would like to hedge my bet and have applications in with several banks in case one runs out of money or delays the application for one reason or another.
Chris…GREAT GREAT GREAT QUESTION!
(One I’ve been asking myself since last Tuesday.)
The only way your query could work is if you have business accounts at two or more banks. If you do, call them both and find out which one is more eager to have your business.
Remember, most lenders have indicated they would only be providing PPP Loans TO EXISTING CUSTOMERS ONLY. (New customers need not apply if they are seeking PPP.)
There is another theoretical complexity. What if you have a relationship with a local lender? Should a nonprofit still attempt to apply at Kabbage.com? We are not endorsing or recommending lenders but you may find it interesting that Kabbage.com has indicated they are processing PPP Loan Applications online.
Here’s their website:
https://www.kabbage.com/paycheck-protection-program-loans/
Thank you,
My bank is currently not taking SBA applications, although they are telling me that they have applied.
I feel if I wait for them, I might miss out.
I have found several banks online that are accepting applications fro non-customers, Kabbage is one of them.
I am going to apply at 3 or 4 today. Just wondering if I am breaking any rules (or laws) by doing so.
They say they are tracking loans by EIN, so that explains not taking loans from multiple banks without breaking laws.
You are welcome Mr. LaRose 🙂
We are a nonprofit preschool – no owners. IF your bank’s online PPP application requires you to list 100% ownership before you can continue, should I just put 100% and straighten it out later?
Layla,
Couple of things here. We found out over the weekend that different lenders are creating their own applications for PPP loans which may vary and have different questions and requirements. We’re hoping they differentiate between for-profit and nonprofits with custom applications that make more sense.
Regarding the original SBA PPP Loan application here’s a few thoughts. First, the The CARES Act bill was hastily put together. Second, the PPP Loan application was hastily put together. When it comes to the line about declaring the name of the “20% owner.” We made the decision to leave it blank understanding that the lender may ask us to place the name of the Board Chairman, Board Officers or all Board Members. EVEN THOUGH NONE OF THEM ARE OWNERS. Simply put, the SBA is using the same form for both for-profit and nonprofit businesses even though nonprofits do not have owners. We completed the loan application, left many items blank, forwarded it onto our lender and are waiting for further instructions.
the bank I bank with is no longer accepting applications for PPP. Any ideas on who would accept an application without having an account there?
Honestly small business are going to have a hard time submitting their application for PPP, most banks are requiring you to have an account. I suggest never to give up keep inquiring someone has to help us 🙂
What bank will process your loan without being a customer?
I sent application to my bank and 2 days later, they called and said they would not be processing my application, as I was only a depositor and have no loans with the bank and they were only processing for the customers that had more than a business checking account.
Lynn,
First, Bank of America made a similar announcement last week and then had to retract that policy because of the blow back. I would recontact your lender to see if they’ve changed their position. Second, our experience has been that banks will not take new business customers who intend to apply for PPP loans. Third, though we are not endorsing any particular lender we have heard of some success with BoeFly Lending. We also know that Kabbage is accepting PPP loan applications.
Hi Lynn – Did you get the help you needed? If not please reach out – our lending partner is smaller and able to move fast, no existing relationship needed.
I am Maria Garcia, I am a single mother here in Texas, i want to testify about a genuine lender that helped me with a loan for my daughters treatment and for the Christmas, he is Mr Matthew Ryan, He is trustworthy, everyone out there in need of a loan should contact him via [email protected]
Regards
Maria Garcia
Marcia,
We’re grateful and celebrate both you and Matthew Ryan. Thank you for the introduction!
[email protected]
Thank you very much Maria for the the resources 🙂 I am going to follow up ASAP!
Hi,
I may be repeating the question but haven’t seen any clear answer. I applied trough Chase on April 7 and yesterday received email that funds are finished. Definitely they didn’t followed first come serve rule. I don’t believe they are going to process my app because of small amount I’m requesting. Now I am thinking to apply from 3 or 4 different institutions and will sign it with only one who process my app first. Is that OK if I apply through different lenders at same time?
If I didn’t make the first round and applied at a second bank, essentially have two applications open with two banks, is that considered fraud?
Christine,
Regarding your question. ABSOLUTELY NOT.
Thank you for your reply, Mr. LaRose. The first bank we applied to finally cleared our application for review by the SBA. They call it staging, not an approval but at this point it looks pretty good for us.
Hi Jimmy,
Thanks for the clear answer to Christine’s question — once she’s been declined, would she be doing anything wrong applying elsewhere. A few people have asked a different version of this question that matches my question, and I haven’t seen as clear an answer to that one: assuming we haven’t been declined, but our application is still pending submission to the SBA, would we be doing anything wrong if we also submitted applications through other lenders?
You can apply to as many banks as you like.
Once the application makes it through a bank’s underwriting department, it gets sent to the SBA for assignment of funds.
That SBA assignment is attached to your EIN or SS#.
If you get through this process with a particular bank, you will then get loan closing information from that bank.
if another bank submits your application to the SBA it will be rejected by the SBA because you already have a SBA # attached to your EIN.
No fraud, no problem.
Fraud would only occur if you sent in applications under fake or multiple EINs for the same business.
Apply away! don’t put all your eggs in one basket.
I wanted to express my appreciation for this timely article on PPP nonprofit loans. Your explanations of the Paycheck Protection Program and its impact on nonprofit organizations offer valuable insights and guidance. Thank you for your efforts in sharing this important information!