Community, One Meal at a Time Bankers: The Unsung Heroes

By Cole Keney, Business Advisor at Alerus

y now, many of us are trying to settle into the “new norm”… a new work routine, a new childcare routine and even a new shopping routine with masks, social distancing and pick-up orders. Yet, we can all remember where we were when the pandemic first changed our lives, and the uncertainty it subsequently created.

For many businesses, this uncertainty was magnified by one question: how will I continue to pay my employees? This question wasn’t only a top concern for businesses, it was a top question for congressional leaders as they acted swiftly to introduce the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) stimulus package, including the Paycheck Protection Program (PPP).

The Paycheck Protection Program is a federal loan program aimed at helping small businesses who have been severely impacted by COVID-19. Businesses could receive funding–or a PPP loan–with the primary intent of funds be directed towards employee salaries. In other words, protect employees’ paychecks by continuing to pay them. All, or a portion, of the PPP loan will be forgiven (not be required to be paid back) if the business can show that it kept their employees employed.

As many businesses faced great uncertainty in mid to late March, the Paycheck Protection Program was a sign of hope during a time of darkness. And for many local financial institutions, it was time to do what we do best – act fast and do whatever possible to

In addition to medical professionals and essential workers, our community bankers are some of the heroes who worked around the clock to help save our local economies.

support our clients and ultimately, our local economy.

When the Paycheck Protection Program was first introduced in early April, many businesses scrambled to quickly secure funding. Since Congress only allocated $349 billion initially, everyone was moving fast to ensure they secured relief for their business and their employees. How did they secure these funds? By partnering with their bank.

The critical role banks played in the Paycheck Protection Program is often forgotten. Simply put, the federal government leveraged the resources and relationships that financial institutions have with their clients to serve as a distribution vehicle in transferring money from the federal government to businesses. Since most financial institutions already partner with the Small Business Administration (SBA) for other federal loan programs, it was expedient to take this process and expand upon it for PPP funding.

Given the quick introduction of PPP funding by Congress and looming concern amongst businesses and bankers that funding will run out, it was all hands on deck. This meant bankers, and many support roles within financial institutions, need to work all hours of the day, all days of the week. We transitioned employees from other departments into lending roles to support the unprecedented loan volumes and the needs of our clients.

So many of our team members worked evenings and weekends– including Easter weekend– all to ensure we took care of clients. For us, it wasn’t about the hours worked. It was an opportunity to do something good for our clients, and our community. We saw the opportunity and rose to the challenge, as did so many financial institutions in our community and across the country.

In just 14 days, the initial $349 billion allocated for PPP loans ran out. I will always remember this time as two of the fastest and most stressful weeks of my career. Shortly thereafter, the federal government approved the second round of PPP funding. After the initial rush to secure funding in the first round, the second round was much different. The second round of funds was never depleted and Congress continued to extend the application date, allowing businesses to continue to apply for funds.

Financial institutions play a vital role in the economy. In addition to being the conduit between the federal government and local businesses, financial institutions are also considered an essential business. So just as medical professionals, grocery store employees and law enforcement each serve a critical role in our community, so do financial institutions. After all, you want your debit card to work when making purchases and you need access to the funds in your paycheck — but more importantly, when the opportunity arose to help provide necessary relief to many businesses, financial institutions were there to help.