San Angelo Bankers Should Prepare for Small Business Lending Onslaught

SAN ANGELO, TX — San Angelo banks should receive details of how to help local businesses in accordance with the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, just passed, within 15 days, or by April 13, the Monday after Easter, said the Director of the Angelo State University Small Business Development Center David Erickson. The information may arrive earlier.

Erickson said the Paycheck Protection Program, or PPP, provision of the Act will forgive principle of the CARES Act loan that is used to finance a local business or non-profit organization’s payroll. The rules of the PPP are that the business or non-profit employs less than 500 people. The loan program was passed by Congress to compensate small and medium sized businesses for lost revenue caused by the restrictions in place due to the coronavirus and COVID-19 situation.

How much can a small San Angelo business borrow?

According to the Chicago law firm of Winston & Strawn, a source that Erickson provided, "The maximum PPP loan available to any business is $10 million or, if less, 2.5 times the average monthly payroll costs of the business over the year prior to the making of the loan (practically, this may become the year prior to the loan application), excluding the prorated portion of any annual compensation above $100,000 for any person.”

A business with a $25,000 monthly payroll average base qualification for a loan. The business can borrow 2.5 times $25,000, or $62,500. The timeframe of the payroll qualification could be defined as your 2019 tax year or the prior 12 months from loan application, depending on how the Trump administration interprets the CARES Act.

The money can be used to cover payroll (except the portion above $100,000 per year for any person), group healthcare premiums, mortgage interest excluding prepayments or principle payments, and rent payments. The loan proceeds can also be used to pay interest on debt that existed prior to February 15, 2020.

PPP loans bear interest of a maximum of 4 percent and mature no later than 10 years from origination. Payments can be deferred for six to 12 months.

No collateral or personal-guarantees are required. There will be no recourse to owners of borrowers for nonpayment unless the proceeds are used for an unauthorized purpose. Most fees on PPP loans are waived.

A large chunk of a PPP loan is forgiven for the following, according to Winston & Strawn:

• Payroll costs, excluding the prorated portion of any compensation above $100,000 per year for any person
• Group healthcare benefit costs and insurance premiums Mortgage interest (but not prepayments or principal payments) and rent payments on mortgages and leases in existence before February 15, 2020
• Certain utilities, including electricity, gas, water, transportation, and phone and Internet access for service that began before February 15, 2020
• Additional wages paid to tipped employees 

In all, the federal government has $349 billion to lend in PPP loan program. To get a PPP loan, please call a local San Angelo bank. All of them are here to make the Concho Valley thrive. Here are all the banks in the region that can help. Links to banks that support local journalism and advertise with San Angelo LIVE! are provided.

First Financial Bank
3471 Knickerbocker Rd
San Angelo, TX 76904
Phone: 325-659-5900
Contact: Luke Uherik, Senior VP

First Financial Bank
222 S Koenigheim St
San Angelo, TX 76903
Phone: 325-659-5900
Contacts: Chris Evatt, President/CEO
Lindy Jordan, Exec VP

Bank of San Angelo
2635 Valley View Blvd.
P.O. Box 62000
San Angelo, TX 76904
Phone: 325- 947-8400
Contacts: John Childers, President
Deborah Summers, VP

Sonora Bank
5710 Sherwood Way
San Angelo, TX 76901
Phone: 325-949-0099
Contact: Stephen Franco, Senior VP

Sonora Bank
2502 Southland Blvd
Phone: 325-947-2100
Contact: Carolyn Bruha-Keeling, Senior VP

The Bank and Trust
1420 Knickerbocker Rd
San Angelo, Texas 76904
Phone: 325-944-9555
Contact: Darcy Weishuhn, VP

Citizens State Bank
329 W Harris Ave.
San Angelo, Texas 76903
Phone: 325-657-0099
Contact: Dean Feathers, President

Texas Bank
2201 Sherwood Way
San Angelo, Texas 76901
Phone: 325-949-3721
Contacts: Joseph Thomas, VP
Libby Clark, Senior VP, Casey Barrett President/CEO

First National Bank of Mertzon
3399 Knickerbocker Rd.
San Angelo, Texas 76904
Phone: 325-223-0234
Contact: Will Slaughter, VP

Crockett National Bank
502 S. Koenighiem
San Angelo, Texas 76903
Phone: 325-658-6714
Contact: Chris Dawson, Stephen Heimbecker

Texas Financial Bank
40 W. Twohig, Ste. 402
San Angelo, Texas 76903
Phone: 325-716-7828
Contact: Wilson Stokes, Commercial loan Officer

City National Bank
1886 Pecos Street Suite 7
San Angelo Texas 76901
Phone: 325-703-2031
Contact: Wrey Montgomery

First State Bank of Paint Rock
402 Smith Blvd
San Angelo, TX 76905
Phone: 325-653-1000
Contact: Dean McIntyre, President /CEO

1st Community Federal Credit Union
3505 Wildewood Dr.
San Angelo, TX 76904
Phone: 325-653-1465
Contact: Julie Mills, Business Loan Officer

National or Regional banks:

Wells Fargo Bank Texas
San Angelo, Texas
Phone: 325-657-8640
Contact: Mark Clark, VP

BBVA Bank
San Angelo, Texas (out of the Abilene office)
Phone: 325-267-9015
Contact: Joe Trimble, Business Banking Officer

Prosperity Bank
4109 College Hills Blvd. 
San Angelo, TX 76904
Phone: 325-949-0222
Contact: Loretta Floyd, Bank Center President