So far, 121 Financial Credit Union has funded $ 7 million of its $ 30 million allocated to Paycheck Protection Program loans, and it hopes to hit its cap next week, CEO David Marovich said on April 14.
Marovich said the credit union saw around 400 applications before it had to shut down the portal last week to catch up on processing applications and disbursing loans.
“Once we have completed this first round we may be able to reopen it,” said Marovich.
Applications for companies applying to the program opened on April 3. Self-employed workers and independent contractors could apply from April 10.
Businesses can apply for a PPP loan to repay up to eight weeks of salary costs, if all employees are kept on the payroll.
At first, Marovich said the program from a lending point of view was “a bit of a challenge”. With little advice from the Small Business Administration for lenders, 121 financial lenders and others wondered exactly what kind of documentation they needed from borrowers.
âIt started a little slow until the SBA got more advice, more procedures,â Marovich said.
“They announced the program and they did a great job of educating borrowers what to expect, but not lenders as to what we need to do to fund the loans.”
Now, Marovich said the credit union is able to process claims within 24 to 48 hours, but the claims portal remains closed until it can process the backlog of claims.
Most of the businesses that have applied so far have provided the credit union with the proper paperwork and documentation to file the claims. It also accepts applications from members and non-members.
Once 121 Financial hits its cap of $ 30 million, Marovich said he would consider raising it with funds from a possible loan from the US Treasury.
âWe’re sort of waiting to see,â he said.