Pinnacle Loans $930 Million to Companies in Round Two of the Paycheck Protection Program

In the second round of Paycheck Protection Program lending, Pinnacle Financial Partners (Nasdaq/NGS: PNFP) made more than 9,000 loans worth $930 million to local businesses in need across its footprint. Combined with first round lending, the firm issued 23,778 PPP loans worth more than $3.2 billion. For context, Pinnacle’s loan growth in all of 2019 was $2.1 billion.

“I maintain that the Paycheck Protection Program is one of the most effective uses of government stimulus I have ever seen, despite the complications,” said Terry Turner, Pinnacle’s president and CEO. “Local businesses needed help, and this injection of funding helped millions of them survive. Our associates spent more than a year on this incredible effort, and they delivered in ways only Pinnacle can. Their preparation and willingness to tackle the complexities are a true demonstration of what makes Pinnacle different, but the real value is in the 23,000 businesses in our home communities that will make it to the other side of this crisis because of the funding we helped them get.”

The average size of a second round PPP loan from Pinnacle in 2021 was $102,441, down from $157,189 in the first round, and 94 percent were considered small-dollar loans with amounts below $350,000.

• 2021 Small-dollar Loans Less than $350,000
  • 8,501 loans worth $494 million
  • 94 percent of the total loans Pinnacle made
  • Average loan size in this category is $58,109
• 2021 Mid-size Loans Larger than $350,000 and Less than $1 million
  • 461 loans worth $259 million
  • 5 percent of the total loans Pinnacle made
  • Average loan size in this category is $561,625
• 2021 Large Loans Greater than $1 million
  • 110 loans worth $176.5 million
  • 1 percent of the total loans Pinnacle made
  • Average loan size in this category is $1.6 million

PPP lending in 2021 was a much different process than in 2020. Pinnacle’s PPP team had more time to prepare but also faced more complications and greater scrutiny in the SBA review process. It took a full-time, dedicated effort from dozens of associates and continued attention from practically all relationship managers to advise clients and take in and process PPP applications.