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good afternoon I'm Carlos Fernandez policy analyst at the Vegas chamber I'd like to thank you all for tuning in to her accessing emergency capital webinar with nevada community banks the Small Business Administration the Vegas chamber president CEO Mary Betsy Walt before we get started I want to take a moment to explain some features of this call to preserve high sound quality will be muting everyone would call besides our presenters to make it easier for everyone to hear we like to ask questions there people do so be joining this call on the web or through the mobile app you can ask a question by using a chat feature on the interface will ask a question on your behalf you can also question by click and raise button on the interface we will call your name and onion lines that you can ask your question but you have asked your question we'll read me your line so everyone on the call can hear the answer interpreter time we asked AAPC questions brief will be taken off questions at the end the call and now please welcome to basse chambers president CEO Mary Betsy Walt Thank You Carlos and thank you everybody for joining us on today's teleconference we really appreciate that you're here today and we've been getting a lot of feedback so we wanted to make sure to have the guests on today that we have from the SBA we have Joe Amato who is a little technically challenged today but that's okay Joe we appreciate your on my audio and hopefully you can join us by video soon we also have Ryan Sullivan with Bank of George and John Miller with lexicon Bank gentlemen thank you so much for joining us thanks ravenous thank you just really quickly I want to make a quick announcement please feel free to join us tomorrow May 5th at 1 o'clock for a webinar with the southern about a health district will have Las Vegas councilman Brian Knutson Councilwoman olivia diaz and then department managers from the southern nevada health district as well so you're not going to want to miss that one tomorrow all right thank you guys again for joining us today tell us a little bit about some of the offerings that you have in each of your respective thanks Ryan let's start with you today yeah sure you know Bank of George has has been on the market since 2007 we are a locally owned community bank our focus really as small business so that's kept us busy certainly the last several weeks like many other banks but we we typically have clients between two and fifty million in annual sales or revenue so you know we do commercial real estate loans commercial and industrial loans equipment financing you know online banking all the depository services so from a profile standpoint I think custom and lexicon are somewhat similar you know we've been really positioned over the last seven weeks to to help as many people as we can and we've got a book of business between the loan and and deposit side of about four thousand individual accounts and I think that over the last seven weeks we've been in contact with every single one of them so our teams have been extremely busy you know working with all of our clients which is like I said the lion share of which is right in that best of all business window so there's been a number of ways that we've been able to support them to these kinds not only pvp but a number of other business relief modification programs and just helping them with the tools that help navigate you know through the uncertainty of the times and and have them position to win when the economy starts open back up again great Thank You Ryan and John at lexicon give us a similar update regarding your organization yeah we're definitely newer to the market we opened our doors in August of nineteen it hasn't even been ten months which is my juggling but one of the things we recognized in looking at Las Vegas and Nevada as a whole is you know from the 2008 we saw 13 institutions statewide kind of exit banking in Las Vegas and so we thought that the business community was significantly under banked which was why we started lexicon and as when I mentioned you know our our focuses are similar both in in customer in size but it really is you know relationship banking which is I think most of most of the pain that we've seen in this program is not really having that relationship acknowledgement your maker is and what they can do and how fast they can move knowing you are so you know like Ryan were focused on businesses and and executing on their unique needs in the making community both from partial real estate to you know lines credit and so we've seen amazing growth over this time period we like Ryan have touched all of our current clients and and started dealing with many new relationships through this process of offering the PPP loans we look forward to you know fostering those relationships as we move for okay great well thank you both again for being here Joe Amato I know we can hear you but we can't see you can you share what the latest funding from Congress means and has meant for the payroll protection program and give us an update on all that news well thank both Ryan Sullivan from McGeorge and John Miller from Alexa Carney or two of one of our two of the leading banks in our community that have really been doing all they can to help small business and I want to thank them greatly I love their logos and back of their heads we're all you see now is my big here is my big voice and then see nothing but black which is where my mind is right now to say the least probably talk to John about ten times a day and Ryan I think I send you a couple emails every couple of days with updates including today's update which is phenomenal where are we right now as of this weekend we funded a hundred and seventy five billion dollars in PPP funding of the three hundred and ten to 320 they've been earmarked we have about 145 150 billion left to go which is phenomenal because from what we can tell all the backlog has now been filled so basically everything we have coming in now has been is basically new deals or new people finding out DPP we're going to be reaching out to several groups that really haven't taken advantage of the VP like the nonprofit and for-profit hospitals and we're going to be doing a lot more outreach and to the gentleman you're seeing right here both Ryan John you're going to want to get a good understanding of where their app we're taking in new applications because we're going to be fine we're going to be actually going out and proactively finding new applications for businesses nonprofits throughout the state and hopefully they have the bandwidth to take on some new applications as well this morning we received sort of a very interesting a new rule new interim rule about the businesses that are having a very hard time getting employees back from unemployment and this is going to be sort of groundbreaking because every lender has asked me this question what I do with the businesses where half of their people are on unemployment making a thousand dollars a week and don't really believe they should come back until employments exhausted what the rule basically says and I'm basically going to give you my my description of it as opposed to read it verbatim is that if an employer is having a difficult time getting all their employees back which is a requirement for PPP forgiveness now this is all I'm going to do with forgiveness if they do not or cannot get all their employees back but they make a written attempt or documented attempt to secure those employees and those employees or former employees I guess you could say those former report employees respond in writing or in a documented way saying that they cannot come back because their basic collecting unemployment at a higher rate than they would be getting paid then and the banks are going to shake their head then we're going to equate that into the process of forgiveness so I am instructing a little bit businesses that I've talked to and believe it or not I've talked about 200 businesses already today I mean it's only what 112 I've already talked to several you know over almost 200 businesses already today in webinar and another even though I'm email trend I just got off of we're basically I'm telling you send an email send an we chats and them whatever you can in writing asking them to come back and then basically take a picture or print out their response because you're going to need to give that to every everyone that does not respond your you give that to lenders proof that you have documented their resistance and coming back and that it won't affect their their forgiveness their amount of forgiveness so example 20 employees ten of them come back ten of them don't because to collect the unemployment have your payroll that shows those ten employees have the documentation that showed the ten that won't come back and you should be eligible for a hundred percent forgiveness at that point but I've asked the question to Washington and economy together but if you cannot if you're not basically still spending 75% of your PPP funding on their role because you can't bring all those employees back does that affect forgiveness so I can see John Miller's brain working right now that is the question I haven't gotten answered yet but it was a question I posed this morning in a conference call and everybody sort of scratched their heads so I think that's the two-part equation to getting forgiveness is number one you have to imply 75% of your PPP funding toward payroll number two you have to match the number of employees you had on your application if you're giving you forgiveness on not matching the employees are they also giving you a forgiveness on not using the funds at 75 percent so Mary Beth I'll have that answer soon and I will get it out to everyone so they can spread it out as well Julie these are pretty critical those are pretty critical questions to be answered for those businesses really trying to plan on how they use that portion of the money that doesn't have to be used on payroll so if that's reducing the amount that they can ultimately be forgiven it really kind of changes their internal calculation of how they're running well listen this is my answer to that this is the recommendation I made upstream that money which may not be used for payroll at that point in time on will still need to be set aside for payroll so they still that either have to have spent or set aside an amount equal to that 75% for payroll if those employees don't come back until again and the best part about this is we got about six to eight weeks to get this question answered per se because that's one forgiveness is gonna start to be determined or maybe five to seven weeks at this point so yeah that is something that's going to be very important and I will get that answer for sooner or later I've already exhausted the patience of most the people in DC because that was the first thing I said and they're like oh well we didn't think of that I said well it is part of a two-part equation for forgiveness and I know Ryan's not going to forgive a loan unless he knows specifically how he's supposed to forgiving it forgive it and I so know that you John aren't going to do it either and every other bank that I talk to on a regular basis so so that's going to be an important equation and probably it'll be a thousand questions about it as well so the two most important things about PPP right now are there's no money left we're gonna be looking for ways to get it out there because we think we've exhausted all the backlog from from the first tier on what it says is that we've given three hundred forty nine billion dollars in I don't one and we've given one hundred seventy-five billion in aisle two and believe it or not for the state of Nevada we gave two billion away and Ida one and we gave one point nine billion away already for Idol two and the majority of loans believe it or not for I infer I'm sorry for PPP nobody had corrected me the amazing thing is item P p1 was $209,000 average PPP - is 79,000 average so you're seeing that we're actually helping more small businesses a lot of independent contractors a lot of sole proprietors it's and you know they have caps of you know twenty thousand eight hundred thirty two dollars for most sole proprietors and independent contractors but that twenty thousand eight hundred thirty two dollars goes a long way for a lot of these people um the other thing I want to share that's going to be important I know reopened today but before you rush to your computers to reapply or to apply Idol opened up today to take applications for agribusinesses only so agricultural based businesses Idol is taking applications for right now it is also taking reapplication for anyone that applied for Idol in the first 10 days before it streamlines and has a number to confirmation number so if you have a number to confirmation number you go back on the on a website and you basically reapply it's gonna say you're an agribusiness but they've figured out something internally that if you have a two number two number they're going to be a so be able to source you out and basically give you the new application number with a three and it might even be a four I think it's a three or four if you're in agribusiness you're automatically entry if you're anybody else you can go onto the website and try and you're going to get either kicked out or you're gonna be basically disallowed from reapplying or applying if you're not an agribusiness so if you're an agribusiness or business that basically starts with a number two confirmation number the idol website sba.gov backslash disaster economic injury disaster loan program is open to you both the idol and Idol advance is open to you those who do a lot of calls at the bank today coming in from some miscommunications about multiple banks being able to pull people there headache started about six o'clock this morning when we found out that some banks that originally took an application I'm not going to say there were bigger banks I'm not going to say there weren't bigger banks but did not act on those applications in a timely manner and went to great banks like Bank of George and and meadows and lexicon and so on and the best a bank and so and so forth they basically were supposed to be when lexicon or Bank of George went in and and actually made an application for those borrowers for those applicants and receive Danny Trejo number they were supposed to be locked out of the e Tran process so no other bank could come in and duplicate application well it appears that over the weekend some other banks not only got each or an apple cake or we don't know if they train numbers but started funding applications and we had several people including a lovely young lady that was funded by lexicon back then receiving money from a bank beginning with C which will not say who they are and lexicon equally and they were frantic they were going to jail for fraud so let me tell the people that are out there if you see if you received a funding from your initial lender and subsequently went to its second lender and got approved and funded from maybe a smaller Bank Community Bank regional bank obviously focus on the bank that actually funded your teal first and y2 as best you can isolate the money if you did receive money from like these other bigger banks because we're trying to figure out a mechanism that it has to be returned you obviously can't keep money from both banks because that would not be proper and you can't take more than one out PPP application for more than one bank so that would not be proper so at this point we're dealing with it we're trying to find out how to solve it but if it does happen where you basically receive money from two banks you know your your smaller bank your regional bank your community bank and then all the sudden out of the blue found money in your bank from a bee or a W or a C bank you will contact me at Joseph D'Amato sba.gov and we're sending all of that information forward to to DC so that they can start tabulating we think it might have happened in 2000 so don't be surprised if it happened to you don't be afraid of it happen to you you just close it to me you're protected isolate that money because it's got to
e returned John let us know what's going on we'll also communicate with the SBA as well so yeah if you let your originating bank that actually proved you and then all of a sudden his money shows up let them know and let me know but do not hesitate to let me know I get six emails a day what's wrong with 700 so it'll be Joseph da motto am ATO sba.gov aren't you glad you can't see my face i Rifai to this chamber member didn't know that they received the first loan and so they panicked right when they when they found out that they got that because everybody's so busy there was a big lag in communication so they went ahead because they felt like they hadn't heard from their first night they went to the other Bank and anyway that's how they will snafu happened correct yeah well in some cases what happened is they went to the other Bank because they hadn't heard from the First Bank in quite a while weeks they got approved and funded by the second bank at that point in time the way the e train system should work is no other Bank should be able to fund anything shouldn't get a number should be able to get anything they're locked out for some reason and just I think it's pure volume you remember the first tranche of SBA funding for PPP we did in 14 days the same amount of funding the SVA has done in total in 14 years so just the sheer volume of what is hit the SBA which was the smallest cabinet agency in the least you know the biggest kept secret in the US government well we're now in the forefront and obviously we're dealing with with process issues that that we're trying to deal with very efficiently but you know again just your volume has over well in the system I think in some cases but yet again if you find that you've applied at the second bank that approved and funded and then the first bank all of a sudden you look at your bank account and there's money in it that they didn't even notify that's coming which has been the case you need to isolate that money you need to inform me and the second bank as well that this has happened and we will do everything we can to make sure you know just disclosing it all remember people were crying I'm going to use the fraud fraud has to have a malicious intent there is no malicious intent by anybody that this accidentally happens to and we'll figure out a way to fix it so nobody has it gets in any trouble well Joe thank you for personally reaching out to that Chamber member and helping because I know that they were pretty upset but let's go ahead and get to some questions right now this one says I'm an office manager for a small private school that has only 10 staff I received the PPP yesterday but had applied with tents with 10 staff in the summer I may only have 7 how will this affect the amount I was given for the PPP do you want me to answer you guys want to answer God you won't take a job well because I've answered this question a lot lately I know business like this lenders and both wine lenders I'm looking at so happy I can look at you and you don't have to see me lenders are asking me this question every day now because now we're going from process and funding to forgiveness and closing there going to be some guidelines put out we're involved in actually hopefully getting the right guidelines out there if the business is seasonal like that the SBA came up with an interim rule that talked about seasonal businesses and that there will be still forgiveness if there's a seasonal equation I looked John Miller in the I haven't seen Brian face-to-face in quite a while but I look John Miller in the eye and said said listen we will figure this out before this next five or seven weeks our focus really is it's trying to figure out because again this was all put together with bogum band-aids and masking tape so we're gonna try to figure out the forgiveness portion in the same way but hopefully with a little more clarity at the end okay you you would agree the concept behind that forgiveness piece isn't going to change right it's going to be the concept that you tried to keep your employees employed that's the it's its Paycheck protection and so long as the employer approaches it with that in regard we have to hope that the SBA you know steps up to the plate as well right would that mean that's the principle point of the program I agree with you 1,000% and that is the focus that we have if the business listened you guys are smart guys most of the time if the guy makes if the owner makes reattempt and basically what I tell owners to do if you're running into difficulty documented give the bank the understanding that we did everything we could we try to replace people I'd rather that this new rule is great because it's definitely helping us with the unemployment issue but again remember when I was on a conference call this weekend with the senator i think i'm friday we were talking about nobody when they put the unemployment insurance bonus that $600 extra week forth the PPP's program even existed so there was sort of like some you know there was definitely some conflict from day one and how the two were set up and how they they actually hurt each other in a sense by bolstering unemployment on one end and then basically trying to get your employees back on the other in PPP so I think use the word reasonable there's a reasonable expectation that we're going to basically work with and I will sit 24-7 by the phone to work with every lender and if I have to give a a sort of either clarification or identification or some solace to each of into a bank that has these issues I'm going to do it and put it in writing and I've told Washington I'm going to do that I mean that the focus really is or told my boss who told Washington the focus really is is the business is supposed to make its best and most reasonable attempt to get all the employees back and if there are some mitigating factors like seasonality yes there's the businesses actually that I talked to recently Ryan that they don't bring all their employees back until June because there are some business that really works with a late summer business for all intents and purposes just so they said you know we want the PPP we want to use it for payroll we wanted to you know take advantage of this but we're trying to get our employees back early and it's not working because they have other obligations I told them document the heck out of everything that you're what you're doing and making the best attempt you guys no reasonable guys you guys obviously want these things on honey person forgiven as much as the businesses do we'll find an answer and I would say we've we've been working with a lot of our applicants through the process in as much as we know what forgiveness is going to look like to really set them up and I think we're probably all telling everybody the same thing just document a document in some cases some organizations decided open up separate accounts track everything separately we're facilitating that and you know I you know obviously the goal of the banks and certainly the applicants is to make sure that their businesses in position to have as much of the funds forgiven as possible so you know that can be a challenge as Joe alluded to you know the scope of this program we you know Bank of George / significance of an a lender 100 in the nation so we know the 7a program I'm not sure if that helped or hurt us because the PPP program is so different you know every time that new guidance comes out you know we're we're reading those IFRS we're reading the FAQ just like you are and we're really you know obviously looking forward to the guidance on the forgiveness because that's a critical component right I agree Johnny of anything say no I just threw is something that happened to the person Joe that you were something like what happened to the person that you were talking about earlier this person said that they applied for the PPP on day one this person banks with another bank not Thank You Georgia lexicon they said they have not heard anything and they won't return calls what can this person do in this case any suggestion elicit thing I'll tell you two to two truths about this program the sad thing is lenders try to make it certain types of lenders try to make it seamless effortless on their part and make it as automated as possible and it seems like nobody is at the store except for machine taking their information and that's sad the community banks the regional banks have been very proactive I mean I'm talking to them every day they're talking to people every day and there's a lot more communication productivity the situation that is caused today is mostly because of the inactivity by some some lenders not to be responsive what we're trying to do is and I want to sort of inform people of something that's very very important and I hope both lenders agree with us agree with me here in most cases the SBA is not involved in this process whatsoever except to give guidance okay and that sometimes it's beneficial and sometimes it's not but from the date of application on the PPP program to the day that they submit the application for what we call an e Tran number the SBA doesn't even know that application exists so every bank some banks to begin with a B or W or C they basically say you know we're waiting on the SBA we're waiting on this we're waiting on that we're waiting on the bottom line is the SBA does not know your application exists until it's put into the e Tran system and it's given a number and at that point the bank has 10 days to fund that application it's has it's supposed to have 5 days to take the application and process it that went out the window and then for most for some banks not all not the two I'm looking at here most likely and then basically from the day they approve it to the day they fund it should be 10 days the SBA is not helping the process whatsoever except to issue a number and provide guidance and call me 600 times a day but so that's the reality of things so when a client calls and says listen the bank is telling me the SBA is holding up the process you know there's only one way there's holding up the process it's because technology is holding up the process not the SBA so that's that's one myth I want to satisfy and I throw you both banks sitting here can pretty much confirm exactly what I said correct and Jo I mean you know there were many many applications lexicon try to pull and we ultimately found out another bank had already received a number and we were the first ones to tell the applicant that they their number their loan in secured by another bank other Bank haven't even contacted him so that communication process definitely broke down we were just happy to be able to let him know and and kind of let them be at ease the fact that a number had been secured so I think communication is critical it's one of the things I'm sure Ryan has worked on hard we've talked to every every borrower multiple times many borrowers that that we didn't even get a loan for just to let them know what the process should look like whether it be here or somewhere else yeah I would say the communications Menke we were talking a little bit about that before we started in terms of reaching out to all of our clients you know we certainly you know we understand and I think there has been some misconception thanks for clearing up when those funds are actually secured and obviously it's when they get an 8-digit eat r an SBA authorization number so in some cases we have some clients that submitted PPP through Brand X Bank in some cases on April 3rd and hadn't heard anything and we gave the general advice not get ourselves some troubles you can only accept one of these loans but that doesn't mean that you can't apply at multiple locations and let us know if we can help so it's been a communication issue and you know system issues just you know not withstanding that described by and large and once we get that authorization number and you have the 10 days to document and fund these loans which has been an interesting logistical challenge in fairness to banks of all sides I don't think the systems generally were created to withstand the type of volume that we've seen through this program like like Joe indicated we've done you know the SBA thon 15 years worth of loans essentially in four weeks and just imagine if everyone in your rolodex or anybody that you've known for the last 20 years I'll reach out to you at the same time and ask for a PPP loan that's kind of what it's been like in the banking industry you know and maybe in a small sense but you know at lexicon and bang computers but but it's a huge huge backlog the good news is is with the second round I'd agree with you do I think most that backlog it's been through and also to kind of tie into your statistics what we saw at the beginning is within the small business space those larger organizations that are so eligible they were ready to go now we're seeing a lot the smaller organizations ten or fewer employees both profit and nonprofit they're getting their PPP funds now so we've seen those average dollar amounts per loan go down quite a bit round two compared to round one which is which is great okay I'm getting a lot of questions at the chamber about the reasons for employees not coming back and how that affects the the forgiveness so this particular company has folks who are actually leaving their employment because they're moving out of town so they say they're moving to another state can that fall under the same forgiveness who's moving out of state the business or the deploys importantly yeah again it's it's the number of employees you put on your application or based on the average number of employees that you had in the the the observance period whatever that is whether you're seasonal whether it's for the whole year of 2019 it is your obligation as a business owner to match that number to get full forgiveness now the unemployment insurance exemption obviously it's gonna be helpful if you have people who moved out of town you got to replace them with other people I mean in order to meet that requirement that application target number that you had previously that is you know that that's a business owner is going to have to replace them anyway trying to replace them as soon as possible is going to be important in order to get that hundred percent forgiveness you know another question Joe we get a lot is you know do I have to use it by June 30th you know how hard and fast is that rule going to be is as businesses have seen a lot of guidance changes many are trying to figure out how long these funds can last then as they try to you know slowly ramp their business back into actual you know performance as it as a business well I asked that question the June 30th deadline is is the cancellation of the program and their hope whatever been cleaned up by June 30th they're there about some time soon after my understanding is at this point if for whatever reason they have not exhausted all their funding by the eight-week period for whatever reason and it may have to do with this new unemployment with claws I don't know the initial response was they can have that money they can still use that money but it's going to be reverted into that 1% loan and paid over 2 years that was the initial reaction I'm not going to say that that's gospel yet because I've been seeing it it's been alluded to in the CFR it's been alluded to in the Q&A from Treasury but I haven't seen hard and fast rule based now on this you I changed its unemployment insurance change so again it's one of those nipple things that we have to figure out in the next my hope is that and figured out by this week and I know that you know I've got plenty of memos out there already since this morning trying to get clarification so I see what you're saying but but right now the way the rule reads is if you know if they had $100,000 and they only use 50 and they used 50 for payroll use 25 for other eligible PPP expenses and they got 25 filling they're hypothetically the way the rule is now they can still use that money for payroll after June 30th or after the 8 week process but it would become alone payable in two years at a 1 percent interest rate I have a feeling that m
ght change I don't know that specifically right now but we'll we'll have to see well I'll wait for more guidance yes provide it as I try to yes right some of the questions that we're getting Joe on the the updated FAQ that came out that really was in response to some of these publicly traded companies taking PPP and then also with the you know the fact that you know every PPP loan over 2 million is going to be audited some of the questions that we're getting from larger potential PPP applicants is how far we know that the credit elsewhere test has been eliminated or modified but how far do we expect the SBA and the Treasury to apply this other outside liquidity standard so you know one of the questions we had was ok well I've got you know a you know someone who's a principal of a business they've got you know let's say X dollars in a retirement account are they going to come back and say well you should have cashed this in and so you add other sources liquidity as you could you so really you didn't need PvP for well I think reasonableness has to be the part of the equation here and and also public relations I mean I think the SCF are and the epic use only go to so far and in a bank making a determination of whether or not there's a reasonable expectations with government backed funding especially for given funding should be used I can't say specifically I've talked to some banks about some individual applications that had some of those pieces involved and what I did is I just ran it through my boss and some other people that I said listen this is what they're trying to do this is how it's being done are we okay with that and I basically they gave me the thumbs up or thumbs down and I told the bank at that point and and as Jon know is on an individual basis I do look into applications affect I'm dealing with one with your bank right now on on somebody whether or not the classic concern or you know what type of business operation is right now and I will on a case-by-case basis John will tell you I will help the bank at least give them cover or help make a determination of whether or not it's worth the risk or whether it's worth the public relations issue on some of those issues as far as the liquidity test completely dropped right now so that that's not an issue and credit elsewhere is completely dropped right now when it comes to PPP so for those two things now publicly traded companies that has a whole different equation that still comes into play and ownership and splits and stuff like that come into play but Ryan I'll tell you and any other banker listening on this call you know I'll take those types of things on and we case-by-case basis and get you an answer and provide cover I mean if I if that's something any issues that it's been helpful on several deals that we had to deal with so thank you Joe for that thank you you know you and your team locally in the local SBA office has been of those 600 emails are getting the a day you're really response or we really appreciate your support that's alright I'll give you 20 bucks later I would let go that because just been very helpful for our Chamber members as well so Joe thank you well you know I we do have an anonymous the rest of my tenure here at the SBA I guess I guess I blew that so so so would you would you I'm getting a lot of questions would you provide some clarity around the latest funding from Congress what that is meant for the PPP can business owners still apply for these funds and do you anticipate more funding later this summer I know there's phase four and different things like that so folks need some clarity around what's to come and what their opportunities still might be well if the SBA has done with the second round of funding or PPP which is in the area 310 320 John and I were talking about this last week the we've absorbed the backlog and we're basically now working with everyone down to independent contractors you know that basically of 1099s $100,000 or less and you get in 20,000 $832 now those are those aren't fancy or luxurious of PPP loans by any standard but the banks are doing them and we have several banks that are basically stepping up with those I mean that's why the PPP numbers average has dropped to 79 thousand dollars because most of them are smaller PPP loans and people can get you know as little as $10,000 so there's the way it was set up basically one of the first set asides was for small banks which they absorbed in the first for a purchase of PPP funding and then there were set asides for rural which we're still working on we have an enormous amount of 60 billion dollars set aside for rural businesses which are reaching out to and also now hospitals which we're now reaching out to because not enough of them have applied you know I knew that through the week when we were in hitting numbers if we hadn't absorbed almost three-quarters of PPP by like the third day I was pretty sure that we're gonna have PPP funding available for at least the next week to ten days and that would run 17 days or longer I still think with the the bird size of the PPP loans that we're still gonna have enough money every business that's at for-profit or nonprofit business is still eligible independent contractor still eligible sole proprietor still eligible so you know we're like I said we're now actually focused on our office and we're hoping the banks focus as well as on outreach you know did you get your PPP loan you you know you're eligible for it you know it's very easy it's an easy process I mean really is from a standpoint of most of the banks the documentation is pretty easy it's stuff you have readily available and you know it's it's a looking for ways to get it done so anybody who has questions about it obviously call the banks directly call my office call made you know email me and I'll help through it yeah you guys would just say the funding timing is really important yeah the timing is important well I would just say you know in terms of the 175 billion that was authorized through May first and and you know there's still a big push for a lot of new applicants so I would just encourage everyone to reach out to their banker on are very proactive way because we don't know how long they're gonna last unless yes well my crystal ball tells me we're at least good for another week at least and you know as the averages continue to drop I still think that could be the last little longer but yes timing is important don't sit on this you know those who haven't applied yet all it's not lost every rumor that I hear I want to kick somebody in the buck every time I hear a rumor and we're running out of funds and we're hurrying that the second and third day I was calling John Miller I said you wouldn't believe what a rat and he said you're kidding but so you know it's there's more than enough money left there's more I we could fund another million businesses at this point I think at this point there really are late at night Joe one of the two sorry I said I want to know what you had for breakfast this morning okay yeah so let me ask another question from our folks on the line I have an idle confirmation number but cannot find it I've got the mist a couple of times is why I'm asking it is there a way to find the idol number on the SBA website I can't find their Idol number that is that is very that is a huge problem if they didn't save it or take a snapshot of the screen when they when they basically got their Idol application submitted sadly Idol is run by a group called Oda office of disaster assistance Oda is like the the non kissing cousin of the SBA even though we're part of SBA we have we have no we have no interaction with them at all we're trying to figure out a bridge and in four weeks we still haven't been able to build you know one step toward that bridge we don't know we have no access to the system we can't check on names we can't check on tax ID numbers I have three or four businesses that are just in tears because they haven't gotten Idol money they don't remember their confirmation number they don't know if it's a two or a three and there's nothing we can do to help now we're hoping to come out with some guidance some direct phone numbers and some email of email addresses that we're gonna tell people to start inundating Oda directly because we can't get the information from them so we're gonna ask Oda to respond to the at least I get 250 emails a day about Idol status and there's all I can do is try to get them some status update by one person that has been able to sort of search for us but that's it so we're gonna try to figure out a better bridge because right now it's sort of socks know we've seen a couple applications come in lately where they obviously received an ID alone and we have to reduce the PPP amount as a as a ratio to be able to get it approved and so there's the notification hasn't even gone out to that and we're able to tell them there are obviously going to be receiving some funds and we have to kind of find your a problem that amount is I'm trying to get clarification on that because again if the the way we read the rule if the idle amount this is not less than 25% of the total PPP fund so say you've got a $50,000 ID alone and $100,000 PPP loan my understanding from the CFR is you don't have to require paying off the idle loan with PPP fund it's nothing you have to pay it off Joe it's that it limits the amount of the total your available if you like patient it's a multiplication with the idle included now my thought process is the next time I'm in your place which will probably be tomorrow I want to see that in action when you're in because you don't have I mean we were told you do not have to wrap idle in to PPP you don't even have to and most people are some before this point didn't even know if they had a Tyrone yet they only knew they had an application so if somebody does have a night alone it basically it tells you on your form that they have the auto loan is that what these businesses it wouldn't be it wouldn't be advisable to roll the idol into the PPP because it has to be not yeah absolutely you're absolutely correct and I I advise people not to if they have a choice so I'll take a look at that tomorrow because I want that if that is the way it is I want to make sure it's fixed great okay next one Mary Beth yep okay ah this is about timing again and I know we kind of talked about this quite a bit but I really feel like we need to clarify more because I'm getting some similar questions about timing and and so forth so I'm just gonna read this question to you guys can I receive as much money from the PPP or an employee if I am NOT able to rehire them until the 7th or the 8th week of the loan again the way it's supposed to work remember this is a reemployment program that the day after you get funding you're supposed to have the same number of employees from day one week one people necessarily but the same number can't come in seventh week step 10 just have ten employees referring people back to work and off unemployment if they're on unemployment that sort of changed obviously with the way the rule reads and it is very confused to have your employees matching the number of employees and reppin day one week one today some feedback Ryan or John maybe your microphones maybe when we're not talking I'll go ahead and meet mine in case it's being that's somebody yeah okay here's another question I received my pee pee pee on April 16th and hadn't heard from idle but received $1,000 on April 24th how do i account for this when documenting the pee pee pee if you receive the idle advance you don't actually have received idle funding yet you've just received the advance basically you can tell your bank you received advance but you still haven't actually received an auto loan yet so as far as the bank is concerned there's no idle funding you've just received the advance and the advance could be a grant if the rest of the ID alone is disapprove they're not funded so for all intents and purposes just receiving an advance so that when the $10,000 really is sort of nebulous as far as where it really pulls into the idle end of the PTP program okay excellent we just have a couple minutes left I'm going to give this question to both Ryan and John what is your target customer can anybody bank with you all and you are you still taking customers I think our target customer you know are you know we're a business bank that certainly we have we deposits and relationships with any individual that lives in Las Vegas obviously our focus is obviously designed for business customers we are still trying to deal with individuals as they as they come in and request PBP loans it's really a our ability to be able to process and get the information in and move forward with that account and so they can definitely reach out to us and we'll try to try to deal with any of their needs okay Ryan yeah same here small business bank you know the SBA small business standards that describes our entire portfolio you know 250 million in revenue pretty much everybody has you know 500 employees or less we're definitely trying to support as many small businesses and people as we can yes I think that's something that we we haven't lost sight of is this is really a program to help as many people as possible and keep as many employees of a payroll so so yeah we're definitely you know accepting applications that kind of like lexicon where we're you know we're definitely a relationship bank so we don't do a lot of one-off transactions you know working with them and really providing you know comprehensive support and banking services that's our wheelhouse America I will tell you they're both great community banks they fill certain niches they like certain types of customers but they like all small businesses I mean not like certain kind of customers but like customers who like to put money in their bank obviously but they're they're great small business very active they reaching out to me all the time for for clarification of things and and you know you know lexicon being the newest kid on the block and Bank of George being a very established small community bank in this area they do amazing things and I would tell every small business that they'll be better served by doing dealing with either one of these banks yeah I think people are using is a great opportunity to see how community eventually work but you know deposits that stay in this valley are ultimately redeployed to businesses within the valley so as we grow those deposit bases from businesses in Las Vegas we as a community and bank are reinvesting them in loans in our own community and that's keeping that economic pump primed for Vegas was recovery is going to be critical so I encourage every business to really re-evaluate what they're making relationship looks like and and look to your community institutions to really you'll see you'll see a double-edge short as it comes back again adding value back into this valley yeah go ahead and well I just to echo that I mean I think the strength that we have within this community particularly highlighted over the last several weeks is within the community banking sector there's been a lot a lot of larger institutions that as on a pro-rata basis have not done anything close to the amount of PPP lending that lexicon and Bank of Georgia have done in addition we're still lending when it makes sense obviously some businesses have been impacted but we're still you know sitting here with a significant lending pipeline and I think one of the things that's important is people think about what access to capital is going to look like in the months to come PPP got the biggest amount of attention rightly so as a future program one of the components of the cares Act was the SBA payment relief program and that is just huge and and and that was 17 billion that was authorized for existing 7a and 504 loans where the SBA is paying not a deferral the SBA is paying principal and interest for six months that is also going to be eligible for you know that program is going to be available for new loans in those categories that that are funded and approved within six months the enactment of the Act that's the SBA stepping out in more w
ys than just PPP in the last couple minutes that we have what are your policies on folks coming down to your branches and what do you recommend on that front as far as contacting you restricted or you know our doors are locked learning the we're in the bank you can call ahead and make an appointment or if you show up we try to greet you at the door kind of talk through the door and and find out what your needs are and we'll let you into the bank to conduct banking business if your customer but you know we're trying to protect our staff as well as any of our clients as they come in we're the same or about eighty eight and employees seventy percent are working from home but the the branches are still open we're having people call ahead and we're waiving all the charges for online banking setup and remote deposit capture most of our clients and small business are used to accessing the banking digitally so so that's that's great alright great well thank you all for your time today John Miller at lexicon Maureen Sullivan at makeup George and of course Joe Amato from the Small Business Administration we really appreciate all of you being with us today thank you very much thank you so much opportunity to be here we really appreciate your chamber is doing for this region and taking the lead on a lot of these these types of forms we really appreciate it well thank you Joe we appreciate you and I will have you all on again very soon I'm sure because people need this information so we're here to provide it we appreciate your help as well and don't forget to join us tomorrow for the Southern Nevada Health District webinar at one o'clock all right thanks everybody have a great day thank you everybody
