Home Music bank Fidelity Bank completes cancellation of 99% of PPP loans

Fidelity Bank completes cancellation of 99% of PPP loans

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NEW ORLEANS – Loyalty bank said it had completed forgiveness of 99% of the Payroll Protection Program (PPP) loans it issued during the COVID-19 pandemic. The bank, which has issued more than 2,000 such loans totaling $800 million, said its discount rate compares favorably with the national average.

Of the 1% of Fidelity loans that have yet to be forgiven, the majority have been partially forgiven, but borrowers will have to repay some of the funds distributed to them. Fidelity Bank officials expect nearly all of these loans to be repaid by the end of 2025. A limited number of outstanding PPP loans are still pending eligibility, meaning they still have the potential to be forgiven.

Fidelity Bank began processing PPP loan applications on April 3, 2020.

“The day we learned that the PPP loan program was underway, we began planning how to facilitate this to get the money to our communities as quickly as possible,” said Fidelity Bank Chairman Chris Ferris. . “Even before the first application date was open, we had a website set up. We made a lot of assumptions about what the program would look like through the SBA and the Louisiana Bankers Association and our congressional delegation. Fortunately, many of these assumptions we made were correct and that’s why we were able to issue nearly two thousand PPP loans and hold ourselves to such a high discount rate.

Fidelity Bank officials said they don’t expect to hit the 100% forgiveness mark, but they do expect to get closer. Obstacles to a perfect forgiveness rate include poor record keeping by applicants, as well as poor use of funds (not spending 60% on payroll and 40% on eligible expenses) and non-disclosure of disqualifying information.

“We have been incredibly fortunate to have a dedicated and innovative team to help make this entire project work from the time it was announced until today. It was a tireless effort to get to this point and my gratitude goes to everyone who played a part in it,” said Shane Purvis, vice president of Fidelity Bank and head of the SBA loan program.