Michigan banks lend $4.652 billion under first round of PPP program
EAST LANSING — Michigan businesses continue to be supported by community banks.
The Community Bankers of Michigan has compiled the number of loans and dollar amounts from every bank in the state. Here is the information that shows just how successful community banks were to secure potentially forgivable loans in the federal Paycheck Protection Program in the first two weeks of April. Michigan banks loaned $4.652 billion in 21,245 loans. Michigan loans from all sources totaled $10.381 billion from 43,438 loans.
Michigan banks did 49 percent of the number of loans and 45 percent of the dollar amount of loans.
The average loan size for all loans in Michigan was $239,000 and the average for Michigan banks was $218,000. Officials said this makes sense as the largest banks in the country that have offices in Michigan were going to do more of the $5 million max loans.
Initial data has been provided for the second round of funding for the PPP program. Michigan lenders have has made 60,373 loans for $5.566 billion, averaging $92,207 per loan through May 3 in this second round. Michigan ranks sixth in the country in both number and dollar amount of loans to date. The second round has gone much smoother as banks were ready to lend, and community bankers spent time reaching out to new businesses that did not have a prior relationship with their bank, ensuring even more small businesses were helped.
“Michigan banks have stood tall in this program. Bank employees worked late through the night and on the weekends to get loans processed for businesses that needed help in their communities. Community bank employees worked extra hard in the middle of the COVID-19 crisis to answer the call to assist Michigan businesses who desperately needed the help,” said Mike Tierney, president/CEO of the CBM.
Community bankers have continued their efforts in the second round of PPP loan origination, including long nights and weekends.
“Michigan SBA District and Area offices have made themselves available in an effort to assist bankers with their questions,” said Kate Angles, COO of the CBM. “While it has been challenging for everyone involved with this program over the last month with the continued program updates, there has been a singular focus on meeting the needs of the small businesses throughout the state.”