PORTLAND, Maine (AP) — Maine’s community banks are getting credit for swiftly funneling aid to businesses through the Paycheck Protection Program.
While national banks prioritized large businesses, Maine banks helped small businesses stabilize businesses and the economy with hundreds of millions of dollars of forgivable loans, the Portland Press Herald reported.
More than 46% of Paycheck Protection Program loans over $150,000 were made by just six locally owned banks, according to data from the U.S. Small Business Administration.
National banks were far less active in PPP lending in Maine. The top 10 national PPP lenders, including TD Bank, KeyBank, Bank of America and Chase Bank, provided just 13% of loans under $150,000, and about 17% of larger loans in the state.
“I think everyone realized that the goal was to get as many of those loans approved and in the system as quickly as possible,” said Kim Donnelly, director of business banking at Gorham Savings Bank.
To date, about 28,300 loans worth more than $2.2 billion have been made to Maine employers. The vast majority of loans are under $150,000.
The loans may be forgiven if businesses meet certain spending and employment thresholds. Loan balances that aren’t forgiven may be repaid over up to five years at 1% interest.
