Hawaiʻi Banks Secure $1.2 Billion in Federal Funds To Help 12,887 Local Businesses
Seven Small Business Administration-approved lenders have secured more than $1.2 billion in the second round of the federal Paycheck Protection Program to fund 12,887 local companies and support payrolls for an estimated 140,000 jobs statewide, according to the Hawaiʻi Bankers Association.
Loan guarantees for the national program are provided on a “first come, first served” basis. The deadline for the second round of the Paycheck Protection Program (PPP) was recently extended to May 31, allowing businesses more time to apply and receive funding from the Small Business Administration (SBA).
“Within just two months of the second round of PPP, local banks have already secured $1.2 billion in federal aid for Hawaiʻi – money that will help our state’s hardest hit businesses stay afloat and keep employees on payroll,” said Rich Wacker, President of the Hawaiʻi Bankers Association and President & CEO of American Savings Bank. “The recent extension of the PPP deadline to May 31 will allow even more local businesses to receive much-needed support, moving our state further on the path to recovery.”
The PPP is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides financial relief for American workers and small businesses affected by COVID-19. The program is designed to help small businesses keep employees on payroll and off unemployment assistance.
During the first round of the PPP, HBA member banks successfully secured more than $2.62 billion in federal funding for more than 20,000 local companies, supporting payrolls for an estimated 170,000 jobs statewide.
Throughout the second round of PPP, the SBA has continued to announce changes to the program to make access to the loans more equitable. The Hawaiʻi Bankers Association (HBA) encourages PPP loan recipients to continue to work closely with their bank on next steps once funding is received, such as applying for loan forgiveness.
The SBA also offers additional relief programs available to businesses 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 continue to offer accommodations for individual and business customers suffering from financial hardship, including forbearance, payment deferment and extensions.
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.