RENO, Nev. — Based on processed applications as of May 13, Nevada State Bank has announced approval for 4,255 U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) loans totaling $592,005,500.
More than 68% of the loans were made to businesses with fewer than 10 employees, and approximately 82% of the loans approved were for amounts less than $150,000 (57% for amounts less than $50,000). The funding will help preserve payrolls for 65,607 Nevada jobs, based on applicant data.
The average loan for Nevada State Bank clients is $139,132; the median loan amount approved was $34,750. In addition, an estimated $60 million in PPP loans went to businesses in rural Nevada cities.
“I have never been prouder of my Nevada State Bank colleagues than during the last 30 days. Processing half a billion dollars and thousands of loans in 30 days took heroic efforts, but that is exactly the effort needed to help save businesses in our state,” said Terry Shirey, president and CEO of Nevada State Bank. “These weeks of social distancing have been critical to saving lives but incredibly difficult for our economy. The PPP loans may help mitigate that impact and provide businesses some basic resources as the Phase 1 reopening begins.”
Throughout Nevada, more than 200 colleagues were engaged in receiving, processing and funding loans via the newly constructed PPP loan portal and funding process. Technology teams in Nevada were key to utilizing financial technology tools to solve client needs, participating with Zions Bancorporation's (NSB's parent company) Enterprise Technology and Operations division to develop an end-to-end PPP technology solution in less than a week.
“After receiving additional guidance from the SBA on April 2, the team worked through nights and the weekend to have an automated loan application available on Tuesday, April 7,” added Shirey.
“There was a frantic pace around the Round 1 funding. Clients were very anxious about accessing the funds and when Round 1 ran out; the uncertainty was extremely difficult for everyone as we all waited to see what would transpire,” recalled Rick Thomas, EVP/Northern Nevada executive, who oversees the northern business team for Nevada State Bank. “Fortunately, now most anyone who applied and qualified has received funding. There was significant relief locally when the guidance was finally modified for small, local gaming companies.
“Through it all, there has been a constant flow of communication between colleagues and clients — just trying to keep everyone informed. We knew clients and local businesses were concerned, and we felt a strong responsibility to do anything we could to help.”
The sense of uncertainty around both COVID-19 and the PPP funding caused a lot of anxiety.
Carpet King Interiors business owner Kelly Bryce shared his experience: “When Gov. Sisolak's order came down, I called a meeting and talked to my employees about their options. We didn't know what to expect. The PPP loan gave me peace of mind, knowing I could pay the rent and keep my employees on, and not jeopardize my ability to bring them back once business picked up. It's not easy finding employees with the skills we need, even before the coronavirus, so it was important to hang on to our experienced employees.
“In Fernley, a national bank closed their application process right after it opened. Fernley is a small town, and everybody knows everybody, so we all knew about that from talking to other businesses. That just increased our anxiety. While NSB took a few days to get its online application open, once it did, it was painless. I was ready and my banker, Tracy Jo Johnson, was there on the phone to answer any questions I had. I was funded within a week. It was really quick. It's hard to describe the peace of mind that gave me.”
The PPP loans also benefited Nevada nonprofit organizations, such as Artown, whose annual July art festival and events have been drastically impacted. Beth Macmillan, executive director for Artown, describes the drama of the situation: “The atmosphere of uncertainty was unprecedented. Each day brought new and unexpected challenges and mounting bad news. Artown has had to postpone all of its major 2020 public events and concerts. We have seen a dramatic decline in support from what are usually definite sources. Applying for a PPP loan directly impacted our ability to conduct business and the ongoing operation of our organization.
“ ... Once (the NSB) technology team created a workable and accessible digital application form, the bankers were very engaged with trouble-shooting issues as they arose. Our business banker, Shirley Rodgers, was ‘virtually' at our side, keeping us informed about all the steps and requirements of the application process. She was an invaluable partner, providing personalized guidance and direction. Without Shirley and the NSB team, we would not have been able to determine if the application was complete, submitted, or even in process. We're very thankful to have Nevada State Bank on our side.”
Overall, U.S. SBA officials report that Nevada received $4.1 billion in PPP loans as of May 10 through the CARES Act. Nevada State Bank and Zions Bancorporation, N.A. processed approvals for 14.3% of the dollars received by Nevada businesses.
“If businesses are the heartbeat of the American economy, then financial institutions are helping pump the blood to them. The best advice…talk to your banker,” emphasized Shirey. “This community will work together to endure, and to rise again.”
This article was provided to the NNBW by of a press release from Nevada State Bank.