RALEIGH – Small businesses across North Carolina have hit banks with what the head of the North Carolina Bankers Association calls “overwelming” demand for federally backed loans. But Peter Gwaltney says members are rallying to the challenge by beefing up technology resources while still waiting for crucial  guidance from the Small Business Administration.

And there are some successes.

For example, the SBA on Monday tweeted that Bitty & Beau’s Coffee in Wilmington had received a loan through an application filed with Live Oak Bank. The Associated Press noted that the Wilmington firm is “one of the nation’s largest lenders to small businesses.”

A WRAL TechWire reader also said his business had been successful in getting a loan through Dogwood State Bank.

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Other Triangle firms have applied – or tried to – but have encountered delays in trying to land funding through the massive $349 billion Paycheck Protection Plan program that launched on Friday. And another $250 billion is being considered, according to the Trump Administration.

SBA spokeswoman Carol Wilkerson told The AP that there have been more than 275,000 applications received for loans valued at $75 billion. Yet so far challenges are delaying banks’ ability to respond. And Gwaltney, President and Chief Executive Officer of the NC Bankers Association, says there’s one big reason for that.

Peter Gwaltney

“This morning we are still waiting for guidance on the appropriate documents to use to close the loans and many other issues,” Gwaltney told WRAL TechWire in an exclusive interview.

“The documents are important because they are legal documents that specify the terms of the loans between the borrower and the bank, and with the nature of these loans being very different from a typical loan, banks need clear guidance from the Government whether to use their own loan documents with modifications or if there will be a special set of documents provided by SBA.


“We have asked Treasury and SBA for this guidance and are still waiting. With this guidance, banks will be able to close and fund loans.  This is the reason there are very few examples of loans that have been funded to date.”

Asked about loan demand, he replied:

“The best way to describe the demand is overwhelming.”

Here’s our Q&A:

  • Have issues been ironed out to satisfaction of the banks? What were the changes/key points?   

Banks are still waiting on guidance in a number of areas – questions around eligibility of certain borrowers, how to document the loans, rules around loan closings and funding.   In spite of these challenges, bankers are working hard to do as much as they can as quickly as they can to serve the small businesses in their communities.

  • How many are now accepting loan applications? 

Most banks in North Carolina are participating in the Paycheck Protection Program. We don’t have a hard count, but it’s the vast majority.  I’ve not spoken to a bank that has told me they are not participating.

  • Have banks had to bolster their IT systems and perhaps add staff in order to deal with influx? 

Many banks have bolstered their IT systems to adapt to the program, some have not had to do so.  Banks are not adding staff.  They are reallocating staff from various areas within the bank and using staff who are working at home to process PPP loans. Bankers worked through the weekend, around the clock and continued to work late nights into the week to process the deluge of applications for PPP loans.

  • Does your group have a website or link to NC banks accepting loan applications?

No, we do not.  The vast majority of NC banks are accepting applications; however, most are prioritizing their existing customers first.  They are doing this because banks already have files on them and they are able to process them more quickly.

  • Are smaller banks in better position to deal with these applications?

I don’t believe so.  Each bank is approaching this initiative a little differently, regardless of asset size.  Large banks have the benefit of resources (people, technology, budgets) and small banks are nimble.

  • Do you have advice/tips for biz owners/entrepreneurs to follow in order to make an application? 

I encourage business owners to study the requirements of the program on www.sba.gov and to visit with their CPA if they need help with their application and documentation.  Please approach your primary bank with complete documentation and application.

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