CEO, Doug Hutt weighs in on PPP with the Dallas Business Journal

Dallas Business Journal Article| Local Bank Leaders Reflect on PPP

By Catherine Leffert  –  Staff Writer, Dallas Business Journal

The Paycheck Protection Program has provided North Texas small businesses with more than $18 billion in loans since it was launched in 2020.

But PPP was also a major aid to lenders, including North Texas banks, which saw new client acquisition opportunities and boosted balance sheets.

Leaders of local financial institutions said PPP was successful because of its benefit to entrepreneurs and small companies, but the program also increased lending in a low-interest environment and gave banks the opportunity to grow.

Local banks saw fewer logistical challenges from the second draw of PPP, which closed earlier this year. More stringent borrower qualifications, experience from the first round and more time to prepare contributed to the relative ease of the second round.

Now, as loans are being forgiven at a relatively fast pace, banks need to make the benefits they saw from PPP last.

Client growth

Several local banks increased customers through PPP, and are now on a mission to ensure the program isn’t a one-off service for the new business.

Doug Hutt weighs in on PPP with the Dallas Business Journal Doug Hutt, Chairman and CEO of Dallas Capital Bank, said success for the institution means providing other services to PPP clients, including treasury management, payroll accounts, personal accounts and depository services. Dallas Capital did about $108 million in PPP loans to North Texas-based businesses in both 2020 and 2021, SBA data shows.

“PPP put a lot of clients in motion because they're frustrated or concerned,” Hutt said. “For a growing bank, or one that has a smaller share of the pie, PPP was a once-in-a-lifetime opportunity to garner additional share of the market. It put so many clients in play that were willing to have a conversation with you because of the need.”

Read the full story here.