RE: PPP Loans

Friends, Family, Customers, Shareholders, Non-Customers, Fellow Oklahomans, and World Wide Web

March 30, 2020   RE: PPP Loans

There are a tremendous number of questions about the Paycheck Protection Program.  People want to know how to apply and what they need to be working on in order to get these loans ASAP.  That is completely reasonable.  So far, we have hundreds of current customers and hundreds more non-customers call asking about these loans.  We have close nearly $200 million in SBA 7a loans over the last decade.  We know this program.  Once given instructions from the SBA, we’ll be able to get these deals done.

 Here is what we know now:

• There is no formal SBA PPP application available yet. We expect to have one in the next 24-72 hours.
• There is not yet an SBA checklist available. We will upload it to our website once available.
• SBA will not begin processing applications until later this week. I’ve heard Friday but have no confirmation of a timeline.
• It probably won’t be until mid-next week before we can begin closing PPP loans.

 So, what can you be doing to get ready?

• We know that you will need to document your average monthly ‘payroll.’ I will include a complicated definition of what ‘payroll’ means below.  At the end of the day, you are documenting what you paid your staff, or what you were paid.  The SBA will probably require will tax records for 2019 that detail payroll expenses – quarterly 941s for companies and 1099s for sole proprietors/independent contractors.  ‘Payroll’ is broadly defined, so read the below to see what else qualifies.  
• You will need to know how many people you had employed on 2/15/20.
• If you’re a current customer, we will already have corporate/organizational documentation. If you’re not a customer yet, I’ll list information we will need below.

I am very hopeful this is an easy application process.  Since we are dealing with the government, you can rest assured there will be twists, turns, and delays.  We don’t like it either.    

We are going to have a live person handle each of these loan requests.  I realize that takes more time, but I feel strongly that everyone has the opportunity to ask questions so they understand what they are signing up for.  We plan to treat loan processing much like a hospital would treat patients.  Some customers are on life support and desperately need this cash.  We will prioritize them first.  The situation is not as dire with others.  

Like you, our model of doing business is changing before our eyes.  I never would have dreamed that 75% of our staff would be working offsite.  The truth is that we are having to rethink how we operate while trying to serve customers at the same time.  If we treat everyone with grace and understanding, we will all make it through this mess with our heads held high.

 Know that First Oklahoma Bank is going to throw all our resources at getting these loans done.  We are a small bank, but we are going to try and make a big difference in our community and the lives of others!

Tom