Cambridge, Mass. – East Cambridge Savings Bank today announced it has successfully submitted Payroll Protection Program (PPP) loan applications to the Small Business Administration (SBA). Part of the $2 trillion C.A.R.E.S. Act signed into law on March 27, this SBA program incentivizes businesses to keep employees on their payroll during COVID-19 related shutdowns and furloughs. To date, the Bank has processed approximately $25 million in PPP loan applications which is helping local small businesses to keep paychecks going to nearly 3,000 employees.
When the PPP loan was introduced, there was some confusion given the unusual nature and scope of the program. Many small businesses had questions about their eligibility and requirements they would need to meet to reap the full benefits of the loan. Under the program, businesses who keep employees paid while they are shutdown can have their PPP loan forgiven. The Bank’s lending staff worked closely with business owners to guide them through the process, personally picked up completed applications, and in some cases logged on to the SBA website in the middle of the night in order to get access to the online application portal.
“Anytime the federal government introduces a new, large-scale program, especially in the midst of a public health and economic crisis, there are going to be questions, anxiety, and confusion,” said Gilda Nogueira, the Bank’s President and Chief Executive Officer. “Our lending staff has been diligently focused on the timely and efficient processing of every PPP loan application we received. These small business owners and their employees are counting on these funds to keep people paid and financially stable through these extremely difficult times.”
Nogueira also noted that “We were proud to help not only existing business customers, but also many other businesses who looked to our Bank as a trusted partner who could help them keep their doors open and paying employees.” Approximately 12% of submitted PPP applications were from businesses with no prior relationship with the Bank.
The task of submitting PPP loan applications has been a true banking industry effort as financial institutions of all sizes across Massachusetts have worked tirelessly to help businesses successfully complete the process. According to the Massachusetts Bankers Association, a trade group that represents nearly 135 banks of all sizes through the Commonwealth, Massachusetts banks have submitted “95,705 (PPP) loans for a total of $14.8 billion and saved thousands of jobs.”
For more information and what the Bank is doing to respond to the COVID-19 pandemic, please visit ecsb.com
About East Cambridge Savings Bank
East Cambridge Savings Bank is a full-service mutually-held savings bank that believes in connecting with customers. The Bank was established in 1854 and is dedicated to providing businesses and individuals with a full line of banking services in the communities it serves. Headquartered in Cambridge, the Bank has locations in Arlington, Belmont, Cambridge, Chelsea, Malden, Medford, Somerville, and Waltham, as well as an educational training facility at Cambridge Rindge and Latin School. The Bank is a member of the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF).
CONTACT:
Leo Gayne
Assistant Vice President, Public Relations Officer
East Cambridge Savings Bank
617-551-2353
lgayne@ecsb.com