Managed services News
Paycheck Protection Program: 5 Things You Need To Know
CRN spoke with solution providers regarding their experience with the Paycheck Protection Program. Here is what we found.
Make Sure You Have At Least Two Banking Relationships
Key to success in a post-coronavirus world is having at least two strong banking relationships— one of which should be a community bank, said industry executives.
“Bigger is not always better,” said a channel executive. “While the larger banks do a lot of things well, it is often the smaller ones that are more nimble and can cut through some of the red tape surrounding any government program.”
Indeed, a strong relationship with a community bank is one of the keys to getting access to the PPP funds. Vology CEO Shevlin said it is absolutely critical that partners establish those relationships now.
Shevlin said the community banks have been the most successful processing the loans—not big banks. “We got our loan from a regional bank,” he said. “No big banks are looking for new customers from this, but that is how the smaller banks are looking at this. How much time is a big bank going to spend doing a loan with an MSP with 10 employees? How is that going to become a priority at a big bank?”
Shevlin credited a personal banking relationship he had as being key to getting PPP funding. “Relationships are key to success in our industry,” he said. “If you have a personal relationship with a smaller bank, that is the first place you should go. Barring that, you need to find someone else that does have a relationship with a smaller regional or community bank.”