A COMMUNITY BANKER’S ASSESSMENT

As COVID-19’s advancement threatened to wreak havoc with their livelihoods, sole proprietors, entrepreneurs and small businesses sought assistance from the CoreFirst Bank & Trust team to complete applications for PPP loans.

CoreFirst has helped 605 small businesses obtain almost $69 million in loans with an average size of $114,000, according to Kurt Kuta, president and chief executive officer.

“We saw the full spectrum of businesses, everything from hair stylists, web developers, bakers, and restaurants to contractors, retailers, manufacturing firms and professional services companies,” he said. “We learned a lot about what these businesses do and got to help some very thankful people.”

Facing mandated closures in the midst of both a pandemic and a volatile stock market, Kuta said, “Many small business owners were scared and wondering how they’d survive or manage through all the uncertainty. We knew we had to help.”

Initially, CoreFirst worked with its existing customers to secure PPP loan approval. However, before the first round of PPP loan funding ended, applications from new customers were taken and approvals secured.

COMPLICATED LOGISTICS

With bank lobbies closed and many CoreFirst associates working from home, obtaining loans for so many people presented additional and unprecedented challenges. The logistics were further complicated by ever-changing Small Business Administration guidelines and a short, urgent timeframe for accessing PPP approval during the first round.

“I give my team a great deal of credit because we had to adjust on the fly and keep things moving to get these loans approved before money ran out and then get the funds to the businesses in need,” he said. “We had more than half of our associates involved in this process, working at their kitchen tables unable to collaborate in person with clients or teammates, on top of dealing with rapidly changing rules and SBA computer glitches. But they all put in extra effort, nights or weekends, whatever was needed to help our customers obtain the PPP loan funds.”

As an example, Kuta said the SBA altered its guidelines the night before the program went live. Thanks to some teammates who decided to check the U.S. Treasury website around 1 a.m., Kuta said the bank was able to adapt quickly to the change when the system went live the next morning.

ADAPTING PROCESSES

By the time the team had completed the first several dozen loans and gauged the high number of applications that were continuing to come in, an assembly line approach was developed to improve efficiency and better ensure that businesses would get their applications approved and receive their funds in a timely manner.

Kuta said some associates accustomed to overseeing every aspect of a client’s relationship with the bank were initially uncomfortable with the change, but ultimately it made more sense to have team leaders responsible for various aspects of the process given the high volume and myriad of details.

“We all had to let some things go and pass off the baton when our portion of the race was done to someone else so they could finish the race for our customers.,” he said. “Ultimately, the single purpose and sense of urgency with this whole PPP experience led to a higher level of trust and camaraderie amongst the CoreFirst team.”

Kuta added that the experience “also reinforced that you don’t always need to have all the information and detailed processes to get things done. We adopted Coach John Wooden’s philosophy to ‘be quick, but don’t hurry.’ We didn’t have perfect rules and information, but we used what we did have the best we could and pushed ahead.”

Although PPP processing comprised much of the bank’s business this spring, employees still kept pace with traditional offerings for small business clients too, including online and digital banking solutions for cash management as well as cyber security and fraud protection tools, especially critical during the pandemic.

Once the Shawnee County stay-at-home order was lifted, one of Kuta’s first stops was to his hair stylist, having learned during COVID-19 “that a lot of people really shouldn’t use clippers at home.”

During his appointment, he said, “There was exhaustion but also optimism in her demeanor. I could feel the smile behind the face mask. I think a lot of small business owners, like her, are routinely busting it 10 or 12 hours a day and displaying a lot of grit and determination.”

MIDWEST RESPONSE

Kuta is proud not only of the role CoreFirst employees played in securing PPP loans for customers but also the responsiveness and resourcefulness of his community bank colleagues too.

“Midwest small businesses received a higher percentage of funding overall, largely due to the community banks in these states,” he said. “I am proud to be associated with these Midwest community banks and all of our local community banks for their great efforts with the PPP program. This mirrors the commitment we all have here locally and in the Kansas City region to help small businesses survive and thrive and promote our economic vitality and quality of life.”

COMPUTER SUPERHERO

Kuta said a CoreFirst commercial team member shared during the first few days of the PPP initiative a conversation he’d had with his two young sons after they’d asked why he was working so late every night.

“He responded, mostly tongue in cheek, that not all superheroes wear capes. Some sit behind a desk with a computer and an idea. His wife apparently ribbed him that he was no Thor, but still the story resonated with folks who had been working tremendously long hours to push things through and make these loans happen for our customers who were experiencing every emotion on the spectrum. It helped reinforce why we choose to be community bankers.”

COMMUNITY COMMITMENT

But Kuta is quick to point out that the company’s community commitment existed long before COVID-19.

“Our mission to nurture small businesses began with the beliefs of our founder, Emery Fager, and it’s embedded in everything we do,” he said. “Emery’s vision was carried forward by Duane Fager and his family too. That commitment is reflected in our values and our people and the way we do what we do every day—yesterday, today, tomorrow.”