SBA snapshot: These banks are processing the most PPP loans in Maryland

Baltimore Business Journal - 04/13/20 | Written by: Holden Wilen

The Small Business Administration has approved more than $1.5 billion in small business relief loans to be disbursed by banks in Maryland, according to figures obtained by the Baltimore Business Journal.

A report compiled by the SBA's Baltimore District Office shows that as of April 11, banks have been authorized for 4,692 loans through the federal government's Paycheck Protection Program (PPP). Nationally, the SBA has authorized 724,000 loans for about $184 billion.

The totals for Maryland do not include loans authorized in Montgomery and Prince George's counties because they are considered to be part of Greater Washington.

Bankers say they continue to get flooded with applications and the SBA is working frantically to authorize them. The numbers provide a point-in-time snapshot of the massive demand banks are getting for the loans, and are expected to already be even higher.

The PPP program, created under the $2 trillion stimulus package passed by Congress and signed by President Donald Trump, intends to provide fast cash to small businesses impacted by COVID-19 to use for payroll and other expenses such as utilities and rent. The loans, distributed through banks, are forgivable and have a 1% interest rate.

“Everyone at the bank has been working nights and weekends to make sure our customers receive the loans they need under the newly launched Paycheck Protection Program,” said Mary Ann Scully, CEO of Howard Bank.

Baltimore-based Howard (NASDAQ: HBMD) has received authorizations for 516 loans in Maryland, the most of any bank. The loans total $139.3 million.

“Whether they are borrowers, depositors or both, we are focused on making sure our customers have the funds and support they need to keep their businesses operating during this crisis. It has been all hands on deck and the Howard Bank team is rising to the occasion," Scully said.

Charlotte-based financial giant Truist Bank, formed by the merger of BB&T and SunTrust, has received authorization for the most dollars — $250.4 million for 383 loans.

The totals do not necessarily represent how much the banks have disbursed. Banks continue to finalize their processes for how to actually get money into the hands of business owners.

Taylor Bank is the first known in Maryland to have disbursed loans. The Berlin-based bank distributed $2 million to four businesses on April 10 and plans to disburse at least another $13 million by the middle of the week.

Noticeably absent from the list is Wells Fargo, one of the largest banks in the U.S. and the fourth-largest in Greater Baltimore.

The San Fransisco-based giant has had a disastrous rollout of the PPP. Wells Fargo last week stopped accepting applications, saying it had reached its asset cap under restrictions related to a fake accounts scandal from 2016.

Federal regulators gave Wells Fargo an exception to allow the bank to continue participating in the PPP. Wells Fargo is accepting "expressions of interest" from its small business customers, but suggested they should consider going to other banks for relief.

"We are committed to helping as many small businesses as possible given the realities of both this unprecedented situation and the tremendous interest in the PPP," the bank said in a statement to the BBJ.

Here is a look at some of the other things that stood out with the snapshot numbers.

  • Olney-based Sandy Spring ranks No. 2 for loans with 412 and dollars with $208.7 million.
  • First National Bank of Pennsylvania and Orrstown Bank round out the top five. FNB, which has been one of the region's largest banks for several years, has been authorized for 235 loans totaling $107.3 million. Shippensburg, Pennsylvania-based Orrstown, which bought Hamilton Bank last year received authorizations for 184 loans totaling $63.5 million.
  • M&T Bank, the biggest SBA lender in Greater Baltimore for the last 12 years, has authorizations for 99 loans totaling $14.7 million.
  • Bank of America, the biggest bank in Greater Baltimore by deposit market, has authorizations for 28 loans totaling $5.7 million.
  • PNC, another one of the area's biggest banks, has authorizations for 33 loans totaling $24.6 million
  • JPMorgan Chase, the biggest retail bank in the U.S., has authorizations for 19 loans in Maryland totaling $24.9 million.

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