HONOLULU (KHON2) — The Hawaii Bankers Association (HBA) announced that its seven Small Business Administration (SBA)-approved lenders collectively secured $2.1 billion from the SBA’s Paycheck Protection Program, benefitting 11,400 local companies and supporting payrolls for an estimated 170,000 jobs statewide.
“Our Hawaii banks worked tirelessly to qualify and process an unprecedented wave of applications for the Paycheck Protection Program,” said Rich Wacker, President of the Hawaii Bankers Association. “By any measure, the $2.1 billion of funds secured for our local businesses represents several hundred million dollars above our fair share of the total program. The banks are ready to relaunch our efforts if Congress approves more funds for this key program.”
The PPP is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed by President Trump on Mar. 27, which provides financial relief for American workers and small businesses affected by COVID-19. The $349 billion program is designed to help small businesses keep employees on payroll and off unemployment assistance for as much as eight weeks. Loan guarantees under the program were “first come, first served” nationwide, and the program funding was fully allocated by the morning of April 16.
The $2.1 billion of PPP loans are being disbursed to approved applicants as the local banks complete the processing and documentation mandates required under the program rules. The HBA expects banks will have funded nearly all of the PPP loans by the end of April.
Additionally, the HBA announced that member banks processed $330-400 million in Economic Impact payments to hundreds of thousands of Hawaii residents statewide this week. These payments are another support measure under the CARES Act, and are expected to total $1.2 billion for Hawaii taxpayers this year. The HBA encourages people to visit the IRS website, where you can enter your bank information for direct deposit and check your payment status.
“Together, the PPP funds and Economic Impact payments represent more than $2.5 billion of financial support reaching the people and businesses of our state this month as we deal with the economic fallout of this crisis,” said Wacker.
The SBA PPP is just one of the many ways HBA members are taking care of customers and the community during this crisis. While the PPP was an excellent option for many businesses, it may not be the best solution for all companies. The SBA also has several new temporary programs available during the COVID-19 outbreak. Small business owners are encouraged to contact their primary bank or any of the HBA banks for assistance with financial hardship due to the pandemic. Banks are offering accommodations for individual and business customers suffering financial hardship, including forbearance, payment deferment and extensions.
HBA member banks are committed to keeping branches open throughout Hawaii to serve customers. They are also waiving fees when using any local bank’s ATMs, providing kupuna hours and ensuring safe social distancing practices at all locations. Dedicated to serving the community, HBA banks are also supporting a wide range of local nonprofit and community COVID-19 response initiatives.
The Hawaii Bankers Association is a trade organization made up of FDIC insured depository institutions in Hawaii, including: American Savings Bank, Bank of Hawaii, Bank of the Orient, Central Pacific Bank, Finance Factors, First Hawaiian Bank, Hawaii National Bank, HomeStreet Bank, Ohana Pacific Bank, and Territorial Savings Bank.