514 local businesses received a PPP loan from the firm, with 87% under $350,000
MEMPHIS, TN, May 7, 2020 – Through the end of Wednesday, May 6, Pinnacle Financial Partners has made $101.3 million in loans for companies in the Memphis area through the Small Business Administration’s Paycheck Protection Program (PPP). This figure represents 514 local businesses that received emergency funding to pay their employees and essential bills during the ongoing COVID-19 pandemic.
“We always want to be here for Memphis, and that’s never more true than during a crisis,” said Kirk Bailey, Pinnacle’s chairman in Memphis. “Our businesses are going through a lot, so to be able to pump $100 million into them within just a month we believe will be an enormous help. If it helps local businesses survive the shutdown and their employees pay the bills, all of the hard work and long hours will have been worth it.”
The average size of a PPP loan from Pinnacle in the market is $197,102 with the vast majority of them coming in well below $350,000 each.
- Small-dollar Loans Less than $350,000
- 445 loans worth a total of $31.4 million
- 86 percent of the total loans Pinnacle made in the market
- Average loan size in this category is $70,594.
- Mid-size Loans Larger than $350,000 and Less than $2 million
- 60 loans worth a total of $44.8 million
- 12 percent of the total loans Pinnacle made in the market
- Average loan size in this category is $747,024.
- Large Loans of More than $2 million
- 9 loans worth a total of $25 million
- 2 percent of the total loans Pinnacle made in the market
- Average loan size in this category is $2.7 million.
Firm-wide so far, Pinnacle has originated more than $2.4 billion in loans to nearly 14,000 small businesses, an amount well-above what would have been expected for a bank of its asset size. Statewide in Tennessee, it comes to $1.39 billion loaned to 7,758 businesses. Hundreds of associates across the firm worked around the clock to process, review and submit those thousands of applications, clearing 6,000 in the first wave and the remainder once the second round of funding for the program was approved by Congress.
“The need from our clients is tremendous, showing just how far reaching this crisis has been,” said Terry Turner, Pinnacle’s president and CEO. “Fortunately, the federal government and America’s banks mustered their forces to meet the challenge. An emergency such as this required fast and decisive action that, despite its imperfections, showed how committed our industry is to supporting the economies we serve and the small businesses that drive them. We couldn’t be more proud of our associates for their efforts to give help where it was needed.”
These loans are made from Pinnacle funds and include an SBA guarantee. They are potentially eligible for forgiveness if used by the borrower for required purposes and in the allowed eight-week time period. While the SBA has not yet issued all details on what will be required for forgiveness, Pinnacle is advising clients based on the language of the CARES Act and ongoing guidance from the Treasury Department.
“There are still a lot of questions we don’t have answers for yet, but the intent of the program is pretty clear,” Turner said. “I believe this law was intended to keep workers on payrolls, despite their employers’ businesses being negatively affected by COVID-19, and also to allow business owners to pay their most essential bills. For clients that follow the rules of the program, we encourage them apply for forgiveness. We’ll be here to help them through it all the way to the end.”
Pinnacle has hosted several online webinars for clients on PPP forgiveness. Those videos, along with more guidance, are posted on Pinnacle’s website at PNFP.com/PPPForgiveness.
Pinnacle Financial Partners provides a full range of banking, investment, trust, mortgage and insurance products and services designed for businesses and their owners and individuals interested in a comprehensive relationship with their financial institution. Pinnacle earned a spot on FORTUNE’s 2020 list of the 100 Best Companies to Work For® in the U.S., its fourth consecutive appearance. American Banker recognized Pinnacle as one of America’s Best Banks to Work For seven years in a row.
Pinnacle has served Memphis since 2015 when it acquired Magna Bank. Since then Pinnacle has become the official bank of the Memphis Grizzlies and FedExForum and was named a “Top 10 Company to Watch in 2017” by the Greater Memphis Chamber. Pinnacle was named No. 1 “Best Place to Work” by the Memphis Business Journal in four of the last five years.
The firm began operations in a single location in downtown Nashville, TN in October 2000 and has since grown to approximately $29.3 billion in assets as of March 31, 2020. As the second-largest bank holding company headquartered in Tennessee, Pinnacle operates in 12 primarily urban markets in Tennessee, the Carolinas, Virginia and Atlanta.
Additional information concerning Pinnacle, which is included in the Nasdaq Financial-100 Index, can be accessed at www.pnfp.com.