Connecticut lenders together through June 30 processed almost 61,000 PPP loans totaling more than $6.69 billion.

From system problems to unclear and changing guidelines, community banks faced multiple challenges throughout the early days and weeks of the Paycheck Protection Program, all while themselves adjusting to the effects of the pandemic and economic shutdown.

In confronting these challenges, bank employees understood how the pandemic had affected their small business customers, said Eugene Shugrue, chief lending officer at Liberty Bank, one of Connecticut’s top PPP lenders.

“Our customers were hurting, and that impacts us,” Shugrue said. “As soon as the program became available, we saw the value it could bring to our customers; we endorsed it as an institution and one-on-one as bankers.”

Connecticut lenders together through June 30 processed almost 61,000 PPP loans totaling more than $6.69 billion. With Congress authorizing another round of funding through Aug. 8, the state’s lenders worked on more than 3,600 loans in July and August, bringing the total to almost $6.72 billion, according to the U.S. Small Business Administration.

To process as many loans during the PPP’s first few weeks as they would typically do in a year – if not several years – community bank employees adapted and put in long shifts.

A Mission

At Naugatuck-based Ion Bank, getting started on the PPP was “almost like a rally,” said President and CEO David Rotatori.

Right before the PPP started, community banks – like other organizations – had transitioned to having staff work at home. While still dealing with the odd situation of a new work environment and concerns about the pandemic, Ion Bank began focusing on how the PPP could provide needed funds to small businesses and nonprofits.

Over $15B in Assets

“It gave us a mission,” Rotatori said. “Once we had this in front of us, you could feel the energy people had.”

With about $1.3 billion in total assets as of March 31, Ion Bank was among Connecticut’s top 10 PPP lenders and the top lender with assets between $600 million and $1.5 billion. Ion continued to take applications after Congress authorized additional funding in July, processing in total more than 1,600 loans for $200 million.

In the first three weeks of the program, Ion Bank closed as many loans as it had done in the previous three years, Rotatori said.

Ion Bank had started working with its customers before the PPP’s April 3 launch, getting them ready to apply. Employees processed the applications manually during that first round while the bank experimented with a few technology platforms, Rotatori said, none of which felt comfortable.

$1.5B to $15B in Assets

Rotatori went into the PPP convinced that the bank could adapt to the program because of a recent experience. After People’s United Bank acquired Farmington Bank, Ion Bank expanded to that area, hiring 20 former Farmington employees in two months. The PPP has added to Rotatori’s belief in the staff.

With some small businesses running into difficulties getting loans at other banks, Ion Bank began accepting applications from these business owners, including several referred by accountants who knew of other business owners who had received loans. Ion Bank is now working to build relationships with these new customers, Rotatori said.

Employees from across the bank often worked 14-hour days in the PPP’s early weeks. When a second round of funding became available in late April, the bank began using an automated process developed by its core service provider, Southington-based COCC.

“I now have even more confidence going into whatever comes next or any opportunities that come up because of this experience,” Rotatori said. “I think the ability and agility that we have is just tremendous.”

$600M to $1.5B in Assets

Taking Customers to Heart

The ability to think nimbly and respond quickly helped Liberty Bank employees adapt to the program, especially as it changed, Shugrue said.

The Middletown-based bank experienced some choppiness at the outset, Shugrue said, adding that getting through the program required support at all levels of the organization – from CEO David Glidden and the board of directors to staff across the bank – as well as a focus on the small businesses that make up Liberty’s customer base.

“We take our customers to heart, and it was a very personal and important mission for each one of us,” Shugrue said.

Liberty employees from across the bank worked around the clock in the early weeks, with between 50 to 100 people focused on PPP loans. The program affected other groups as well, including call center and branch personnel interacting with customers.

Under $600M in Assets

Liberty Bank, which had nearly $6 billion in assets as of March 31, processed about 3,600 loans for $316 million, including applications received after the program was extended through Aug. 8. Liberty Bank was in the top five statewide for PPP loans processed through June 30, and the top PPP lender in Connecticut for institutions with between $1.5 billion and $15 billion in assets.Using mostly solutions developed by its technology group to automate the PPP, Liberty also worked with an existing technology provider on the process. The bank will use another technology platform for forgiveness applications.

Like Ion Bank, Liberty Bank processed PPP loans for noncustomers, leading to more than 200 loans for over $4 million – and new customers. The bank also conducted outreach sessions to help minority-owned businesses gain access to PPP funding.

Shugrue said the PPP’s focus on small businesses and their importance to communities aligned with Liberty Bank’s culture.

“It was demanding but it was very rewarding,” Shugrue said. “And we feel that we made a positive impact on the businesses that we were able to work with over the last four-and-a-half months.”

UPDATED 2:18 p.m. Aug. 20, 2020: This story has been updated to correct the rankings of lenders.