Some Alaska banks 'overwhelmed,' hit pause button on paycheck protection loans - Must Read Alaska
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Tuesday, March 2, 2021
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Some Alaska banks ‘overwhelmed,’ hit pause button on paycheck protection loans

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Small business owners who were not Johnny-on-the-Spot to apply for the Paycheck Protection Program loans, which are guaranteed by the federal government, may have to wait a bit longer.

Toward the end of last week, two Alaska banks stopped taking applications for what is called a “PPP loan” for small businesses, self-employed, nonprofits, and independent contractors who have lost their incomes due to the COVID-19 economic shutdown.

First National Bank of Alaska, Northrim Bank suspended their acceptance of applications, while AlaskaUSA Federal Credit Union is limiting the program to credit union members only.

Wells Fargo and Key Bank appear to still be accepting applications online, since all banks have closed their lobbies to the general public. Credit Union 1 is not participating in the PPP program.

The PPP is open with the SBA until June 30, 2020. Funded by a bill passed by Congress, the PPP gives small businesses, nonprofits, and “gig economy” workers access to short-term cash flow assistance to cover operating expenses and keep their employees. The loans will come directly from the banks, with interest as low as 1 percent, and no payment for six months.

Key Bank’s online calculator can help you calculate how much you may be able to borrow.

One business owner who applied last week told Must Read Alaska the process involves a lot of paperwork and documentation.

“It’s not an easy loan to get, takes a lot of work. My application is two inches thick. My bank manager told me they were pausing applications. I think mine was one of the last in the door,” she said.

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Suzanne Downing had careers in business and journalism before serving as the Director of Faith and Community-based Initiatives for Florida Gov. Jeb Bush and returning to Alaska to serve as speechwriter for Gov. Sean Parnell. Born on the Oregon coast, she moved to Alaska in 1969.

Latest comments

  • Think maybe some of these people in a situation that they have to borrow money to survive would have been helped by that $1304. the clowns in Juneau refused to release? Of course they aren’t the ones having to take out a loan to pay the rent. Would contact them again but they really don’t care.

    • Yes, I have been writing the house majority for over a year but they don’t care about anyone.

    • The “clowns in Juneau” couldn’t care less about grubby little peasants like you and I…..except on election day, then they are briefly our best friends.

  • My son works at a bank near Spokane. He told me this evening they have had to suspend accepting applications for these loans because so many have applied. Thousands. They had to suspend because they don’t have the resources to work through all the loans. They want to get caught up before taking in more applications. As it is it’s going to take some time.

  • First National Bank of Anchorage changed their name in 2001 or 2002. You should update your files. It’s First National Bank Alaska now.

      • I seriously doubt that. Many plates spinning but not slowing down any.

  • The best possible stimulus package, and the only way to end this miserable lunacy, would be just letting us go back to work.

  • “…that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”
    We are loosing our rights to an invisible enemy while MSM paints the picture of death across America.
    The reality is that millions more will die of heart disease, cancer and medical procedures then will ever die of COVID-19.
    What this is doing further divides a country amongst the have and have nots.
    Thousands may die from COVID-19 but millions will loose their homes and small businesses from this ordeal.
    A generation ago, Americans would be in the streets protesting these closures but today the masses just look to government bailouts for help?
    Doesn’t anyone see the greatest economic depression in modern history building up all around them?

  • The person that said their stack to apply is 2″ thick is simply full of BS. It takes about ten normally available business documents and one spreadsheet to fill out. I’m into it about an hour TOTAL. My wife about the same to pull the files and the numbers off our QuickBooks.

    • I agree. I applied for 2 companies that I oversee, With Quickbooks, proper IRS 941 submitted, and a couple of incorporation documents (available at alaska.gov) I was pleasantly surprised. I must have done something right as our bank provides an ‘application tracker’ and we’re on step 3 of 6 now….

    • You are right . the paperwork in minimal. He probably went online before the new application was available. He is filling out the old Disaster forms.

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