SIDNEY – Mutual Federal processed $18 million in Payroll Protection Program loans as part of an effort to prevent small businesses from closing or laying off workers during the COVID-19 pandemic.
The Sidney bank facilitated 103 PPP loans with approximately 95 percent of them going to businesses in Shelby and Miami counties, Mutual Federal President Dean Weinert said.
“Hopefully we kept some businesses afloat that might not have been otherwise,” he said. “I think we would have seen some failures without this.”
Congress created the Payroll Protection Program in March to aid small businesses that were negatively affected by the pandemic by providing them with funds for payroll and other operating expenses.
According to the Small Business Administration, which is in charge of the program, 5,512 lenders nationwide have approved 4,460,265 loans for a total of more than $510 billion. Nationally, the average loan size has been $114,463 while Mutual Federal’s loans averaged approximately $170,000.
Most of the loans handled by Mutual Federal, an SBA certified lender, were processed during the first week of the program and typically were approved in three days.
“It was definitely a quick turnaround,” Weinert said. “It kept our people busy. But certainly worth it, we think.”
The Payroll Protection Program offers loan forgiveness to companies that meet conditions such as spending their money within an eight-week window and spending at least 75 percent of the money on payroll.
Mutual Federal facilitated PPP loans to a variety of companies including manufacturers, retailers, restaurants and service entities.
“We put this as the No. 1 priority,” Weinert said. “We still think small business in the backbone of our community and the country.”
Mutual Federal is a division of First Bank Richmond, of Richmond, Indiana. First Bank Richmond has processed almost 440 PPP loans totaling approximately $65 million to small businesses in Ohio and Indiana.
The Payroll Protection Program is unprecedented in its scope and the speed at which it moved, Weinert said. And it came at a time when Mutual Federal already was swamped by mortgage refinance applications from people trying to take advantage of low rates, he said.
“It took a lot of hours,” the Mutual Federal president said. “We worked well into the night every night and early mornings to get them done.”
While economic uncertainty remains and no one seems to be comfortable yet, Weinert said, he’s hopeful that the economy is starting to recover.
“I think there’s some optimism out there that we’re starting to turn a corner,” he said. “Maybe we can see the light at the end of the tunnel.”
For more information about Mutual Federal, visit www.mutualbancorp.com or call 937-498-1195.
