The federal rollout of the $350 billion federal Payroll Protection Plan (PPP) has been a rollercoaster ride for bankers and employers alike. In Santa Barbara, demand for PPP loans by local employers trying to make payroll is “insane,” according to one individual who answered the phone at Union Bank’s downtown Santa Barbara offices. At Montecito Bank & Trust, more than a thousand applications popped through the portal in the first four hours, said Megan Orloff.
The “waterfall of applications” was reviewed over the weekend, Orloff said, with the bank returning 250 voicemails and emails to boot. To keep its customers apprised of the latest, the bank has set up a COVID-19 Resources website.
The program intends to give employers loans that enable them to maintain payroll and costs, like medical insurance and family leave, in order to keep employees on the books — and off unemployment insurance. When the coronavirus loosens its grip on American life, the idea is that employees come right back into their jobs. Some costs like rent or mortgage interest and utilities might be covered, as well. And the major boon is that the loan would be forgiven if the employer keeps all its employees.