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Friday, March 29, 2024

Small-business loans saved 1 in 3 Tri-State jobs

Credit: WCPO Cincinnati
Duration: 02:08s 0 shares 1 views

Small-business loans saved 1 in 3 Tri-State jobs
Small-business loans saved 1 in 3 Tri-State jobs

How did local bankers respond to the coronavirus crisis?

They cranked out 13,000 loans a week in April and May.

IT TOOK FOUR HUNDRED 10LENDERS TO FILL THE LOCALDEMAND FOR PAYCHECK PROTECTIONLOANS.THEY APPROVED29-THOUSAND LOANS IN LESS THANTHREEMONTHS.THE WCPO I-TEAM HASBEEN DIGGING INTO THE NUMBERSON THIS GOVERNMENT STIMULUSPROGRAM FOR SEVERAL WEEKS NOW.INVESTIGATIVE REPORTER DANMONK SAYS P-P-P LOANS INGREATER CINCINNATI GENERATEDAT LEAST 90 MILLION IN FEES --FOR THE BANKING INDUSTRY.BY ALMOST ANY MEASURE, KENWOOD-BASED CBANK IS A TINY SLIVEROF THE LOCAL BANKING INDUSTRY.ITS $206 MILLION IN ASSETSMAKE IT ABOUT 900 TIMESSMALLER THAN FIFTH THIRD BANK.BUT IT CBANK CAME UP BIG FORSMALL BORROWERS THIS YEAR -WHEN HEAVY DEMAND FOR PAYCHECKPROTECTION LOANS LEFT MANYSMALL BUSINESS OWNERS AT THEBACK OF THE LINE.

CBANKAPPROVED 208 LOANS IN FIVEWEEKS, EARNING AT LEAST $1.3MILLION IN FEES FROM THE SBA,ACCORDING TO THE I-TEAM'SANALYSIS.7:36"I've beencovering this space for 17years and I can't think of atime when you've seen thisvolume of loans going throughthe banking system in such ashort period of time.NATHANSTOVALL IS A BANKING ANALYSTFOR THE RESEARCH FIRM S&PGLOBAL MARKET INTELLIGENCE.16:02"The banks stepped up andworked hard and got $520billion out there in prettyquick order."ALTHOUGH HEWOULDN'T TALK ON CAMERA, CBANKCEO DEAN MEISZER TOLD ME THEBANK WILL MAKE A MODEST PROFITON ITS PPP LOAN PORTFOLIO.

HEDIDN'T DISPUTE OUR ESTIMATETHAT THE BANK WILL GENERATE ATLEAST $1.3 MILLION IN FEESFROM THOSE LOANS.

BUT HE SAYSTHE PROGRAM WAS COSTLY TOADMINISTER.STOVALL SAYS HE'SHEARD THAT A LOT FROM BANKERSALL OVER THE COUNTRY.7:59"Someof the banks that seem to haveoutpunched their weight, haveeven talked about, 'OK, wethink we're going to makepretty good money on this butwe're actually going to paythat out in terms of bonus forour employees because we knowthey went above and beyond.'"CBANK NORMALLY CATERS TOPRIVATELY OWNED COMPANIES.

BUTSBA STATS SHOW NEARLY 10PERCENT OF ITS PPP LOANS WENTTO LOCAL NONPROFITS, INCLUDINGTHE CHILDREN'S HOME, STALOYSIUS ORPHANAGE AND THERONALD MCDONALD HOUSE.MEISZERSAYS THE BANK PICKED UP SOMENEW CUSTOMERS WITH ITSNONPROFIT LENDING - WHICHSHOULD FUEL FUTURE GROWTH.DANMONK WCPO 9 I-TEAM

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