Customers Bank Opens PPP Loan Application Portal; Will Also Provide White Label Turnkey Solution for Other Lenders
January 12 2021 - 12:00PM
Business Wire
Customers Bank (NYSE: CUBI), one of the nation’s top Paycheck
Protection Program (PPP) Lenders in 2020, began late yesterday to
take applications for the new round of government-guaranteed loans
designed to help small business maintain employment with wages and
health benefits. The bank participated in more than 100,000 PPP
loans totaling over $5 billion in the first rounds of PPP and
believes it will participate in tens of thousands of additional PPP
loans in 2021.
Customers Bank, known for being tech savvy and taking a
digital-first approach to banking, has built a platform that
integrates loan origination, funding, servicing and forgiveness – a
dynamic end-to-end system available to individual commercial
clients nationwide, and other lenders. Best of all, the platform
incorporates the expertise and personal attention of career bankers
as needed.
“We are delighted to announce that our website for PPP loan
applications is open for business,” said Chairman Jay Sidhu. “We
are one of the first banks to start taking loans. Our entire bank
is working together with our FinTech partners to bring PPP loans to
tens of thousands of small and medium-sized businesses across
America as quickly as possible.” The application and links to more
information can be found on the bank’s homepage at
www.customersbank.com.
Many banks offered PPP loans to their clients following the
adoption of the CARES Act in the early days of the COVID pandemic,
but it soon became apparent that many truly small businesses, sole
proprietors, “gig economy” and other hard working entrepreneurs do
not have a traditional banking relationship with a government
chartered, fully-regulated financial institution. Into this gap
stepped the fintechs – companies with keen technology skills and a
strong online marketing presence. These companies were
well-positioned to assist small businesses and entrepreneurs with a
user-friendly online loan application process. The fintechs were
less able, however, to handle all of the intricacies of
underwriting a government guaranteed loan – and did not have the
access to the capital required for funding. Customers Bank Vice
Chair Sam Sidhu engineered a hybrid bank-fintech partnership that
pioneered a scalable model to serve small businesses
nationwide.
PPP provided “an opportunity for us to build more of a national
presence and a national brand among small businesses and to acquire
longer-term customers,” explained Sam Sidhu. ‘We’ve had a lot of
sole proprietors; a lot of sub-five-employee companies. Using what
we learned in the first PPP rounds we have rolled out an even
stronger program.”
Jay Sidhu describes it as a patriotic obligation, “We see it to
be our duty to mobilize for the benefit of all small businesses in
America who are struggling due to the pandemic. We invite all
businesses across America to reach out to us if they are having any
difficulties in getting to the SBA for their PPP loans.”
Customers Bank is so confident in it’s abilities it launched a
“white label” program to offer an end-to-end, turnkey PPP solution
to banks, credit unions, community development financial
institutions, other lenders, and membership organizations such as
chambers of commerce. Already several major lenders including a
“top five” bank, a $50 billion bank, and a nationally known fintech
have become partners in this effort using the Customers Bank
platform to deliver PPP loans to tens of thousands of
borrowers.
“It’s simple and plug-and-play,” explained Sam Sidhu. “There’s
no technology integration. There will be a landing page branded
with the bank’s logo through which clients will enter the
application workflow we’ve built with our partners. The customer
will not know it isn’t their bank until late in the process.” Banks
partnering with Customers Bank will retain their clients; Customers
Bank will not solicit the borrowers for other financial services.
More information on the “white label” program can be found
here.
About Customers Bank
Customers Bank, a subsidiary of Customers Bancorp, Inc. a bank
holding company, is a full-service super-community bank with assets
of approximately $18.8 billion at September 30, 2020. A member of
the Federal Reserve System with deposits insured by the Federal
Deposit Insurance Corporation, Customers Bank is an equal
opportunity lender that provides a range of banking and lending
services to small and medium-sized businesses, professionals,
individuals and families. Services and products are available
wherever permitted by law through digital-first apps, online
portals, and a network of offices and branches. Customers Bancorp,
Inc.’s voting common shares are listed on the New York Stock
Exchange under the symbol CUBI. Additional information can be found
on the company’s website, www.customersbank.com.
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Sam Sidhu Vice Chair & Chief Operating Officer
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