We have taken the view that Directors are not eligible. To make them eligible will take a clarification/exception to the SBA's 400+ standards guide.
It explicitly says employees, officers and Directors are not eligible for loans from their own bank.
Would sure make sense to waive this rule for PPP loans as they are not true SBA loans, and have pretty much zero underwriting.
Terry Anstine, President
Five Points Bank of Hastings
2815 Osborne Dr West
Hastings, NE 68901
(402) 462-2228
NMLS #420297
------Original Message------
We're a small $450mm Tampa based community bank and SBA7a has been a small business line for the past three years. Does anyone have clarity as to whether it's acceptable to make a PPP loan to a director that sits on your bank board? I'm primarily concerned with acceptability from the SBA's viewpoint.
Thanks for any insights,
Jack Barrett
John M. Barrett
President & Chief Executive Officer
jbarrett@firstcitrus.com
T: 813.926.1314
10824 North Dale Mabry Hwy.
Tampa, Florida 33618
First Citrus Bank | LinkedIn | Facebook | YouTube
American Banker 2019 Top 200 Community Bank
Greater Tampa Chamber 2019 Small Business of the Year Winner
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