Customers Bank (NYSE:CUBI) announced on Friday it has increased its Paycheck Protection Program commitment to $500 million by using digital banking OakNorth to help support American small and medium-sized businesses during the coronavirus (COVID-19) pandemic.
As previously reported, the Paycheck Protection Program is part of the $2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act signed on March 27, 2020, aimed at getting small business owners back on their feet and millions of Americans back to work following the COVID-19 emergency. The new program provides financial assistance in the form of a “loan” of up to $10 million, but large portions of the “loans” will be forgiven if payroll is maintained during the crisis or restored by June 30, 2020.
Speaking about the collaboration with OakNorth, Sam Sidhu, Customers Bank Chief Operating Officer, stated that the collaboration will see Customers Bank using OakNorth’s software strategies and algorithms to create an online application process that uses big data to help speed underwriting while reducing any risks. President and CEO of Customers Bank, Richard Ehst, then added:
“We want businesses throughout the nation to know we are available to help them navigate the complexities of the SBA loan process. We want to complete at least 500 more PPP loans and get Americans back to work.”
Applicants of the program may be C-corps, S-corps, Limited Liability Company, Partnerships, Limited Liability Partnerships, Sole Proprietorships, or Independent Contractors. Non-profit organizations are also eligible.