TD Bank CEO on Paycheck Protection Program

what can you tell us about who got the

money from your bank and do you have any

regrets about who those recipients are

well let me just say to start off I

think the easiest way I would sum this

up is that youyou correctly called it

with a twenty six thousand of our of our

customers across the bank have been

approved through the SBA process and I

can just tell you firsthand the

thousands of these customers we've heard

from directly how much they've

appreciated the support and the

timeliness of the turnaround as it means

so much to them and their employees

because predominantly that's what the

program is for to ensure they keep them

on payroll and to sure they keep their

teams together so when they are allowed

to back open or they can come back

together they do have their business

intact right we just also like to call

out that you know our teams have been

working around the clock for the last

couple of weeks on this thing and it's

just amazing to me to put this in

context we're the largest SBA lender on

the East Coast Bar None from Maine to

Florida and normally in an annual cycle

a full year we process will hopefully

three thousand of these applications in

a full year and 26,000 have been done in

about a week and a half so it is an

enormous undertaking we should keep that

in mind for sure we're there we've

talked to a bunch of different banks

bank leaders about this and about what

their process these are because they

seemed to vary quite a bit did you guys

have any criteria for who was given a

loan and who was not did you have to

develop any system as things went on to

handle the volume of calls who did how

did you decide who was at the front of

the line well there's so many stories

that we could spend a lot of time on but

I would first say it was an amazing

uptake on our our end and the folks that

were working around the clock in 72

hours before this thing was opened up to

actually have an online digital app to

be able to actually receive this sort of

intake and I know it was reported on a

lot of fits and starts at various places

but we were really pleased with the

ability to intake this kind of volume so

quickly right out of the gate but not

mean to say that behind the scenes so

much actual manual process was going to

be involved behind the scenes to process

this and process it through the SBA and


guidelines that were set out we're also

very happy that we were able to take

applications from all of our small

business customers whether they were

borrowing on non borrowing as long as

they were a customer of TV right so I

guess my question is did literally every

person who asked for a loan received one

you know how many people are still kind

of left hanging throughout the

application process and did you have to

decide or or ask them you know hey are

you have you done layoffs or are you

planning to you know I anecdotally heard

another story recently about a company

that said well we realized if we had to

maintain payroll at the size it was when

we applied for the loan we delay

everybody off first then apply for the

loan with a smaller workforce couth then

we could say you know as time went on

what we only had to keep it at that size

you know many good questions I would

just say the primary criteria to start

with we followed the rules the way the

legislation was passed and we were very

close with this back and forth with the

various industry groups trade

associations and the SBA about the best

way to get the money out and I know in

your previous segment you called out a

few instances here and there across the

industry but I would say a TD the

primary number I would just point to is

that the vast majority of our applicants

and borrowers were very small customers

indeed and out of that 26,000 82% had 25

employees or less so we do think that

the spirit of what the SBA and the

legislation was trying to do is what we

delivered in real time yeah and I wonder

if that's why actually we are not seeing

dramatic changes being made to this

program as Congress moves to approve

more money now they are targeting some

at specifically smaller banks community

banks I think maybe minority-owned banks

or businesses how will that affect the

loans that you guys are able to make and

you know effectively do you think this

program has accomplished its goal or has

it been misused yeah so you know I guess

we'll have the debrief when all is said

and done about who got off sides and who

didn't but I feel really good at TD in

addition to our TD cares program and all

the other things that we're doing to

help customers and borrowers and small


real time working around the clock to

get these things done as this next wave

of money looks like it comes online

remember that past the house will wait

to see it passed the Senate

I passed the Senate and we wait to see

it past the house and then signed by the

administration we think keeping it under

the basic parameters that the program

was originally under was probably the

prudent thing to do with some carve-outs

for things that they want to accomplish

for the next round it would have been

much too difficult to change the program

in a dramatic fashion and yet still get

the money out in a reasonable timeframe

you said that 82% of your applicants had

less than 25 employees how many people

are still pending in your approval

process but haven't received money yeah

that's a great question you know we have

at least as many still waiting to get

through the process before the funds ran

out at the SBA as we did that's already

made its way through and we're working

through those real time including you

know working with borrowers and

customers to clean up applications where

there was incomplete or missing

documentation as you can imagine as you

can imagine with such an onslaught of

volume they were bound to be just you

know just a ton of this that would have

been incomplete and we're working

through this real time but we think

we're gonna be in a good position if

this does open up later in the week to

get the balance of the volume through

all right 26,000 applications already

Greg thanks for joining us