About One-Fourth Of Loans Went Through Smaller Institutions
July 15, 2020
Bigger was better when it came to acquiring PPP loans in Central Massachusetts. Businesses targeted larger national banks when applying for funds versus smaller regional banks.
The Worcester Business Journal reports Central Massachusetts businesses received 124 loans of $2 million or more from the Paycheck Protection Program to help keep them afloat and their workers on the job. Of those, 32 were processed through Central Massachusetts-based banks or credit unions.
Area companies were most likely to turn to some of the biggest names in banking: Bank of America, Citizens Bank and TD Bank. Those three landed first, second and third in local PPP lending, according to U.S. Small Business Administration data.
Roughly 18,000 loans were made to Central Massachusetts businesses as part of the federal aid program. Of those, about 8,000, or almost 45%, passed through local banks or credit unions.
Central Massachusetts firms turned to roughly 300 different lenders for PPP loans, federal data shows, which may be a factor of where a local office's parent company does its accounting business. About one out of 10 lenders was based locally.
Among all PPP lending statewide, Natick-based Middlesex Savings Bank — the largest Central Massachusetts-based bank by deposits — ranked 12th in number of loans. Hudson-based Avidia Bank was 13th. In all, Massachusetts companies identified using roughly 700 lenders for the program.
Many of the most-used banks and credit unions in Central Massachusetts were already dedicated SBA lenders, including each of the top five: Avidia, Middlesex Savings Bank, Worcester-based Cornerstone Bank, Oxford-based bankHometown and Whitinsville-based UniBank.
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