Tuesday Topic: Fixing the Fix

Community banks continue to carry the burden for these loans while the SBA and Treasury continue to drag their feet on the items most important to the community banks.

1. Final form or reporting for the 1502 related to PPP loans so we can receive the fee that was promised.  Now, we are reading that the deadline is extended until May 22 for companies to pay back if they now decide they should not have received the PPP funds..  The community banks have spent time and effort to process these loans based on good faith that the customer certified their eligibility.  WE continue to expect to receive the fees associated with these loans even if they are paid back by the May 22nd date!  The community banks have done the work to process and fund the loans, we should receive the fee. 
2. The final forgiveness form or whatever so community banks can get repaid.  The continued failure to provide guidance will create a very large liquidity issue the longer this is not provided.  Initially, we expected to begin receiving forgiveness payoffs within five days after the eight weeks with the filing of the forgiveness paperwork. That timing would allow for funds to support the payments to employees and not require large borrowings which will increase the overhead cost of these loans and could greatly reduce or possibly cause a loss to the banks for handling these loans. 
3. Community banks should also be provided a variance on paying tax on the fees..  The businesses receiving these funds are tax exempt......and also any credit unions are tax exempt.
4. We are not concerned about fraud at this time.  Our customers are looking to pay off these loans as soon as possible. 
5. We have little interest in another round of funding.  We are seeing a dramatic decline in applications.  

Thank you.

Dick Burch
Executive Vice President

Chief Financial Officer

SouthAtlantic.bank
630 29th Avenue North
Myrtle Beach SC 29577

P O Box 70130 (29572)
O: 843.839.4412
M: 843.997.6253

Update regarding the measures we are taking at South Atlantic Bank considering the ever evolving COVID-19 environment.

Effective Thursday, March 19, 2020;

All branch lobbies will be limited to appointment only service.  All lanes of our drive-thru will be open to handle all teller services and transactions to include payments, deposits, and in-person withdrawals.  Our priorities are the same in that we will work hard to ensure the safety and well-being of our employees and the communities we serve, all while providing our standard exemplary customer service.  Please check our website https://southatlantic.bank or our social media sites for updates.