NEW ORLEANS – Chris Ferris, the president and CEO of Fidelity Bank, said the second round of Paycheck Protection Program loans has attracted newcomers to the program – and some defectors from bigger banks.
“Restaurants, bars and lodging have been the industries we are seeing with the most demand for funds,” said Ferris. “Professionals, though, also have applied given a drop in revenue they’ve seen in 2020. We also have steady demand from 501c3 and 501c6 nonprofit organizations because of the impact COVID has had on travel and fundraising.”
Overall, 80% of approved loans from this second round are for less than $100,000 and 60% are less than $50,000. Ferris said about a third of the bank’s applicants are completely new to the PPP process but he said he’s also seeing new clients who have defected from larger regional and national banks.
“The people who are coming to us after getting loans in round one from a national bank said the process was less than ideal so they choose not to go through that lender again,” said Ferris. “Others have mentioned their banks have outsourced much of the process this time, and therefore they did not feel comfortable working with someone they did not know.”