Old Fort Bank processes more than year's worth of loans in 6 days

As part of the COVID-19 financial relief efforts provided through the Small Business Administration's (SBA) Paycheck Protection Program (PPP), Old Fort Banking Company announced it processed over a year's worth of commercial loans, totaling roughly $85 million, in approximately six days, a release from OFNB states. The PPP, run by the SBA and the Treasury Department, initially authorized to back $349 billion in loans to companies struggling to pay employees and cover operating expenses as a result of the COVID-19 pandemic. The understanding was that banks would take the lead in getting money to those businesses and that many of the credits ultimately could be forgiven, the release states. Old Fort Bank had prepared for rates as high as 4% and a possible 10-year amortization schedule, which were permitted by the stimulus package, the release states. But the SBA and Treasury Department opted to set terms and pricing well below what they were authorized to do. "We believe this was a tremendous opportunity to serve the needs of our local business communities and felt an obligation to participate in order to maintain strong client relationships, and potentially assist clients in avoiding defaults on existing loans," said Old Fort Banking Company President & CEO Michael C. Spragg. Congressional leaders recently reached a deal on a second round of PPP funding, and the Senate approved the bill Wednesday, it states. It provides $320 billion in additional funds and the House will likely take up the bill Thursday and up to another 24 hours may pass before the funds actually reach the SBA, it states. Once they do, the second round of PPP money will go quickly, but Old Fort Bank is ready to roll, according to the release. "We will continue to stand by our small business clients and do everything we can to deliver relief quickly and efficiently, saving jobs and limiting the economic damage from this unprecedented pandemic," said Spragg.