PROVIDENCE – While national banks have struggled with the rollout of a fast-moving federal loan program designed to help small businesses cover payroll expenses, Rhode Island banks quickly stepped up.
As of Monday, 18 of the 23 members of the Rhode Island Bankers Association were accepting and processing applications for the U.S. Small Business Administration’s Paycheck Protection Program, according to Patricia Octeau, RIBA executive director. Another two member banks were expected to begin accepting applications by early Tuesday, Octeau said in an email.
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Of the remaining three members, two – Dime Bank and Independence Bank – could not be reached for comment, while a third is a trust company and ineligible to act as a program lender.
Despite the still somewhat unclear guidelines released from the SBA and U.S. Department of Treasury, Octeau expressed confidence that member banks would be able to meet the needs of the small-business community and were working diligently to maximize loan availability.
Asked for a response to R.I. General Treasurer Seth Magaziner’s urging for banks not to turn away applicants who were not existing customers, Octeau noted that requirements under the Bank Secrecy Act and “know your customer” guidelines still applied, making the application process more complicated for borrowers who did not already have accounts at a given bank.
The Rhode Island Bankers Association continues to ask bank customers to be patient as member banks process a huge volume of applications for the forgivable loan program.
RIBA also urged business owners wishing to apply to review federal guidelines ahead of time and have payroll records, tax identification numbers and information on all people with at least 20% company ownership to expedite the process.
Nancy Lavin is a staff writer for PBN. Contact her at Lavin@PBN.com.
