Delivering Loan Products to our Communities
Paycheck Protection Program Loans Continue to Support Local Businesses
As 2020 rolled into 2021, it soon became clear that the COVID-19 pandemic was still with us for the foreseeable future. At Lake City Bank, our commitment to helping our customers and our communities navigate the pandemic continued.
An important part of the story was pivoting to help our clients access Paycheck Protection Program (PPP) loans. We invested in technology and added a generous amount of elbow grease from the Lake City Bank team. We adapted and launched an automated portal for PPP loan applications that streamlined the process for applying, submitting documents and processing loans. Supported by technology, team members worked long hours to get our customers’ applications to the SBA, fund loans and, ultimately, to submit forgiveness applications that completed the process.
The numbers also tell a great story. During 2020 and the first half of 2021, Lake City Bank funded PPP loans totaling $735.6 million. In addition, the bank processed forgiveness applications for 97.8% of the PPP loans we originated, and customers received forgiveness (or repaid) $719.8 million in PPP loans. We submitted an additional $3.9 million in forgiveness applications to the SBA on behalf of our customers that were awaiting approval as of February 28, 2022.
As we wind down PPP loans and look forward to an end to the pandemic, we don’t mind repeating that every one of our clients who needed, qualified and applied for a PPP loan has been served, regardless of whether they were a commercial client, a private banking sole practitioner, or a business served by branch bankers throughout our footprint. Every single client.
Lake City Bank Helps New Farmers Get Started
Lake City Bank is an approved lender in the Farm Service Agency’s (FSA) Certified Lender Program, working in close relationship with FSA to provide Farm Ownership Loans to beginning farmers. Our participation with FSA allows us to provide both 50/50 FSA loans and Beginning Farmer Down Payment Program (5/45/50) loans. Due to their limited down payment requirements, these loans allow aspiring farmers to make farm purchases that otherwise would be unavailable to them via conventional financing. In 2021, Lake City Bank helped ten farming operations secure FSA financing—five used the 50/50 loan program and five used the 5/45/50 option.
In addition to participating in these programs with FSA, we seek FSA Guarantees on the bank’s portion of the loan in order to provide the borrower with attractive long term fixed rates.
Small Business Administration (SBA) Loans
Lake City Bank is an approved lender in the Small Business Administration’s (SBA) Preferred Lender Program. With this designation and our relationship with the SBA, we are able to approve SBA Express and 7(a) program loans. These programs help facilitate start-up business financing, and help eligible small businesses obtain SBA guaranteed financing for a variety of general business purposes. The bank, participating with Certified Development Companies (CDCs) located throughout our footprint, also offers SBA 504 Loans, which are used to provide financing to support the capital needs of growing businesses.
Small Business Loans
As a community bank, Lake City Bank provides financing solutions for businesses, regardless of size. Our Small Business Lending team works with our Retail Banking officers to deliver credit solutions to small businesses throughout our footprint. We provide a wide variety of financing products to support the growth of small businesses, including:
- Business term loans for permanent business needs such as equipment, vehicles or permanent working capital
- Revolving lines of credit to provide short-term working capital for accounts receivable and inventory purchases
- Commercial mortgage loans that finance expanding existing space or purchasing new space
- Agricultural term loans and lines of credit to finance agricultural land, working capital, livestock, crops, or machinery and equipment purchases