Michigan Banks Lend $4.652 Billion Under Round 1 of Paycheck Protection Program
Michigan banks lend over $4 billion dollars to Michigan businesses under the federal PPP program, proving once again why working with a Michigan bank is so important for Michigan businesses.
EAST LANSING, Mich., May 06, 2020 /PRNewswire-PRWeb/ -- Michigan businesses continue to be supported by community banks. The Community Bankers of Michigan (CBM) has compiled the number of loans and dollar amounts from every bank in the state. Here is the information that shows just how successful community banks were to secure potentially forgivable loans in the federal Paycheck Protection Program in the first two weeks of April.
Michigan Banks*
- 21,245 number of loans
- $4.652 billion
Michigan total loans from all sources**
- 43,438 number of loans
- $10.381 billion
**Michigan banks, out-of-state banks lending in Michigan, CU's, Fintech's, Farm credit/Greenstone, all others.
Michigan banks did 49% of the number of loans and 45% of the dollar amount of loans.
The average loan size for all loans in Michigan was $239,000 and the average for Michigan banks was $218,000. This makes sense as the largest banks in the country that have offices in Michigan were going to do more of the $5 million max loans.
Initial data has been provided for the second round of funding for the PPP program. Michigan lenders have made 60,373 loans for $5.566 billion, averaging $92,207 per loan through May 3 in this second round. Michigan ranks 6th in the country in both number and dollar amount of loans to date. The second round has gone much smoother as banks were ready to lend, and community bankers spent time reaching out to new businesses that did not have a prior relationship with their bank, ensuring even more small businesses were helped.
"Michigan banks have stood tall in this program. Bank employees worked late through the night and on the weekends to get loans processed for businesses that needed help in their communities. Community bank employees worked extra hard in the middle of the COVID-19 crisis to answer the call to assist Michigan businesses who desperately needed the help," says Mike Tierney, President/CEO of the CBM.
Community bankers have continued their efforts in the second round of PPP loan origination, including long nights and weekends. "Michigan SBA District and Area offices have made themselves available in an effort to assist bankers with their questions," shared Kate Angles, Chief Operating Officer of the CBM. "While it has been challenging for everyone involved with this program over the last month with the continued program updates, there has been a singular focus on meeting the needs of the small businesses throughout the state."
The sheer magnitude of developing and implementing a nationwide program in days has been an impressive achievement. While many larger banks struggled to get their loan programs up and running during the first round of funding, community bankers were in the trenches getting the job done. Many credit unions did not participate in the SBA PPP loan program.
Tierney commented, "The Michigan business community just got the best look in decades at why banking with a Michigan bank is so important to the future of their business."
For additional information and or interview requests, contact Mike Tierney, of the CBM at 517-336-4430; [email protected].
About Community Bankers of Michigan
The Community Bankers of Michigan is a 250-member trade association serving community banks, and their financial services partners, throughout Michigan. With headquarters in East Lansing, Michigan, the Community Bankers of Michigan is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, professional education programs, and high-quality products and services. For more information visit http://www.cbofm.org. One Mission. Community Banks.
SOURCE Community Bankers of Michigan
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