In the second round of Paycheck Protection Program lending, Pinnacle Financial Partners made 605 loans worth $77.6 million to local businesses in need across the Chattanooga area. Added together with first round lending, the firm issued nearly 1,766 PPP loans worth more than $279.9 million in the market. For context, Pinnacle’s local loan growth in all of 2019 was $159.2 million.
“Our community and economy needed a great deal of help to get through this crisis,” said Craig Holley, Pinnacle’s Chattanooga chairman. “The PPP was a big part of helping our clients make it to the other side. It wouldn’t have been possible without the work Pinnacle associates have put forth on their behalf. I’ve never seen a team lift this big, and our people have carried it for more than a year. Chattanooga is stronger today because of what they accomplished.”
The average size of a second round PPP loan from Pinnacle in the market is $128,277, with 90 percent coming in well below $350,000 each.
2021 Small-dollar Loans Less than $350,000
542 loans worth $39 million
90 percent of the total PPP loans Pinnacle made in the market
Average loan size in this category is $72,029
2021 Mid-size Loans Larger than $350,000 and Less than $1 million
57 loans worth $30.5 million
9 percent of the total PPP loans Pinnacle made in the market
Average loan size in this category is $534,426
2021 Large Loans Greater than $1 million
6 loans worth $8.1 million
1 percent of the total PPP loans Pinnacle made in the market
Average loan size in this category is $1.4 million
Statewide in Tennessee, Pinnacle originated $552.3 million in PPP loans to 5,327 businesses in the second round. The firmwide total is more than 9,000 loans worth more than $930 million. When combined with first round PPP loans in 2020, Pinnacle lent $3.2 billion to 23,000 clients across its footprint. The firm saw success with small-dollar and mid-size loans, in particular, getting much needed funding to small businesses facing revenue shortfalls and added expenses, both related to the pandemic.
Total Small-dollar Loans Less than $350,000
21,784 loans worth $1.4 billion
91 percent of the total PPP loans Pinnacle made
Average loan size in this category is $63,096
Total Mid-size Loans Larger than $350,000 and Less than $1 million
1,490 loans worth $851.9 million
6 percent of the total PPP loans Pinnacle made
Average loan size in this category is $571,748
Total Large Loans Larger than $1 million
504 loans worth $1 billion
3 percent of the total PPP loans Pinnacle made
Average loan size in this category is $2 million
PPP lending in 2021 was a much different process than in 2020. Pinnacle’s PPP team had more time to prepare but also faced more complications and greater scrutiny in the SBA review process. It took a full-time, dedicated effort from dozens of associates and continued attention from practically all relationship managers to advise clients and take in and process PPP applications.
“Our associates spent more than a year on this incredible effort, and they delivered in ways only Pinnacle can,” said Terry Turner, Pinnacle’s president and CEO. “Their preparation and willingness to tackle the complexities are a true demonstration of what makes Pinnacle different, but the real value is in the 23,000 businesses in our home communities that will make it to the other side of this crisis because of the funding we helped them get.”
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. Pinnacle has already opened its forgiveness application portal for second round loans, and the number of forgiveness applications for first round loans is steadily increasing. With lending now closed, the SBA appears to be processing and approving forgiveness applications at a faster rate. Pinnacle is encouraging first round PPP borrowers to apply for forgiveness now before deadlines start hitting in the summer.
“We’re encouraged by the increased number of PPP loan payoffs we’ve seen recently from the SBA,” Mr. Turner said. “This process isn’t over when we fund the loan. We’ve been working with clients since October on the forgiveness process, and we’ve spent more than a year now advising businesses who are facing pandemic-related troubles. It started with PPP and our intensive deferral and credit review process, and now we’re moving into the home stretch with PPP forgiveness and the new SBA grant programs that launched this month. It’s been a difficult road, and our associates have worked hand in hand with their clients every step of the way.”
Resources for Pinnacle clients working on forgiveness are available at PNFP.com/PPPForgiveness. And though banks are not directly involved in the programs, Pinnacle is advising clients on the Restaurant Revitalization Fund and Shuttered Venue Operators Grant at PNFP.com/SBARelief.