Frankfort, IN — As a preferred lender with the Small Business Administration (SBA), The Farmers Bank began taking Paycheck Protection Program (PPP) loan applications online through their website on Friday, April 3rd at approximately 2:00 p.m. As of Tuesday afternoon, April 7th, they had already received a total 257 PPP loan applications totaling $36,617,144. Of those received, 123 applications totaling $21,638,029 have already been submitted to the SBA.
Once all the applications have been submitted to the SBA, which has proven to be the most critical part of the process, the bank will start notifying businesses of their approval status. However, banks are still waiting on guidance from the SBA about the final loan documentation and issuing the loan proceeds to approved borrowers.
Due to the overwhelming response the bank has received to date, priority is being given to eligible businesses that have either a loan or deposit relationship with The Farmers Bank and to those businesses that have already submitted complete applications with the supporting documentation that is required. The bank has reserved the right to suspend or temporarily suspend the loan application process if necessary.
“This is an astounding number of applications to process in such a short period of time. We have had all hands on deck since last Friday to get these applications processed. While it’s not yet possible to fully understand the effects of this unique situation, we remain confident in our ability to work through this together with our valued business customers,” said Karen F. Gregerson, President and CEO of The Farmers Bank. “I want to commend the many staff members who have worked closely with our business customers to access this program. They have worked incredibly hard throughout this entire process.”
Please be patient as we are using all our resources available to get as many applications as possible submitted to the SBA before funding runs out since the SBA is allocating funds on a “first come – first serve” basis. We understand the urgency of this situation for you and your business and we want to be able to serve you as quickly as possible.
The Paycheck Protection Program provides small businesses and not-for-profits with funds to pay up to 8 weeks of payroll costs including benefits. Funds can also be used to pay interest on mortgages, rent, and utilities.
Please visit the bank’s website https://www.thefarmersbank.com/about-us/covid-19/borrower-paycheck-protection-program for more information about the Paycheck Protection Program and for the most recent updates.