M&T Bank says 85 percent of PPP loan applications are coming from repeat borrowers

SYRACUSE, N.Y. — M&T Bank Corp. (NYSE: MTB), the largest SBA lender and bank ranked by deposits in Central New York, says that so far about 85 percent of the applications it has received in the new round of the Paycheck Protection Program (PPP) are from second-time borrowers.

The PPP is the forgivable-loan initiative that seeks to help small companies survive the economic disruptions of the COVID-19 pandemic. The U.S. Small Business Administration (SBA) on Jan. 11 opened the loan portal for the new PPP round, starting with community financial institutions. Big banks like Buffalo–based M&T had to wait another week to participate.

Unlike prior rounds of the PPP, borrowers that already received loans are able to have a second bite at the apple. Second-draw PPP loans are for certain eligible borrowers that previously received a PPP loan, generally have 300 employees or less, have suffered a 25-percent reduction in gross receipts, and have used or will use the full amount of their first PPP loan.

And that’s where the heaviest action is so far.

Hard-hit sectors of the economy like restaurants and the hospitality industry, which may have received prior PPP loans, still “do need help and this program is a perfect help for them,” says Lee DeAmicis, regional manager of business banking at M&T Bank in Syracuse. He has been with the bank for 25 years.

M&T Bank launched its PPP loan portal on Jan. 19. In the first three days of operation, the bank received about 600 completed applications in its Syracuse/Utica region, requesting more than $77.8 million in PPP funding for businesses collectively employing more than 14,400 workers. The average loan amount was about $129,000.

Companywide, M&T Bank received more than 10,000 completed applications requesting nearly $1.6 billion in PPP funding for businesses employing about 243,000 workers. The average loan size was $151,160 and 76 percent of loans were for under $150,000.

The activity was heaviest on day one. M&T says that as it saw in prior rounds of PPP, it expects that velocity to decline in the coming days.

So far, the process has been going more smoothly than in the initial installment of PPP in the spring of 2020, says DeAmicis, as the bank and its customers have more experience with the program now.

“Last time … there was panic and a sense of urgency for us and our customers. We’d never experienced it; no one knew what was going on.,” he says. “This time, we have a solid understanding of how the process works and how much money is available. So everyone is feeling much more at ease.”

To apply through M&T, small businesses need to have or open a new M&T business checking account to be able to apply. Assuming the loan is approved, the checking account is where the funds will be deposited.

During previous rounds, M&T Bank provided more than $7 billion in PPP assistance to more than 35,000 companies and grew its SBA team from 20 to more than 2,700 to handle the process for customers.

“The need has not diminished, and we’re bringing that same energy and commitment to this round of PPP funding,” Julia Berchou, VP and public relations manager, says.

M&T Bank has a website providing more information on COVID-19 resources including the PPP.