Banks as Well as Applicants Faced CARES Challenges
Tom Timberman • May 12, 2020
The president signed round two of the $2.2 trillion CARES Act on April 24, 2020. It increased the funding for two covid-19 relief efforts, adding $320 billion to the Paycheck Protection Program (PPP) and $20 billion to the Small Business Administration’s Emergency Economic Injury Disaster aid (SBA). The first round exhausted both programs’ initial appropriations in 12 days.
CSES has reported on the round one experience from the perspective of loan applicants. Now we’ll turn to the experience of one of the five Eastern Shore community financial institutions serving as the link between the small business owner and the funds. We’re grateful to Ralph Dowling, CEO and president of The Peoples Bank of Kent County for answering our questions.
A previously approved SBA lender, The Peoples Bank was able to process PPP funding from the program’s launch. The applications they accepted were from the bank’s existing small business clients.
Recalling the problems applicants had trying to navigate the complex requirements for the programs, Dowling said the SBA’s instructions were “confusing and ever changing.” PPP loans could only be applied for online and if the loan officers needed expert help, “there could be a wait for days before a response was received.”
Anticipating a surge of applicants, he described how the loan officers and other staff organized into teams and worked around the clock to get their clients’ applications into the SBA’s portal. The bank hired a law firm for assistance in interpreting legal guidelines for applications.
Dowling readily admitted round one was a hectic 12 days. “We tried to organize a system to follow ever-changing guidelines and answer every inquiry about PPP loans. It was a huge undertaking. When the funds were exhausted, we were left with applicants in mid-application, some in the initial stages and many in need.”
When asked about the emotional toll, he said: “While we hoped there would be a second round of funding, we felt devastated for those we couldn’t get through the process in time. For us, it was important to stay focused on the fact that this process, though challenging, was a lifeline for our small business customers. That kept us motivated.”
However, it did get better. “As our lenders and the whole team became more accustomed to the guidelines and portal process, it was easier to navigate and therefore more efficient and less frustrating.”
“It was rewarding, though, at the close of round one, to look back and know we processed 40 applications and the money was deposited to the accounts the customers chose.” Round two began on April 27, and Dowling said: “The process was much improved for this second round, although not without some hiccups.”
For round two the Bank gave first priority to applicants already in the pipeline. “We had their documents ready to be uploaded to the portal as soon as it was opened on day one. Therefore, we were able to handle new inquiries that same day as well.”
With some pride, Mr. Dowling told us that as of May 1, the bank had processed 112 applications that had been approved for a total of $6.5 million loans funded. He ended: “Being able to say that every customer who came forward was given the help they needed during very difficult times, makes me thankful for our incredibly dedicated employees.”
Tom Timberman is a lawyer, and former Foreign Service officer and economic development team leader/government adviser in war zones. He and his wife have lived in Kent County for 24 years.
Common Sense for the Eastern Shore
Right now, Congress is working on a fast-track bill that would make historic cuts to basic needs programs in order to finance another round of tax breaks for the wealthy and big corporations.
The House Agriculture Committee recently voted, along party lines, to advance legislation that would cut as much as $300 million from the Supplemental Nutrition Assistance Program. SNAP is the nation’s most important anti-hunger program, helping more than 41 million people in the U.S. pay for food. With potential cuts this large, it helps to know who benefits from this program in Maryland, and who would lose this assistance. The Center on Budget and Policy Priorities compiled data on SNAP beneficiaries by congressional district, cited below, and produced the Maryland state datasheet , shown below. In Maryland, in 2023-24, 1 in 9 people lived in a household with SNAP benefits. In Maryland’s First Congressional District, in 2023-24: Almost 34,000 households used SNAP benefits. Of those households, 43% had at least one senior (over age 60). 29% of SNAP recipients were people of color. 15% were Black, non-Hispanic, higher than 11.8% nationally. 6% were Hispanic (19.4% nationally). There were 24,700 total veterans (ages 18-64). Of those, 2,200 lived in households that used SNAP benefits (9%). The CBPP SNAP datasheet for Maryland is below. See data from all the states and download factsheets here.
Apparently, some people think that the GOP’s “big beautiful bill” is a foregone conclusion, and that the struggle over the budget and Trump’s agenda is over and done. Not true. On Sunday night, the bill — given the alternate name “Big Bad Bullsh*t Bill” by the Democratic Women’s Caucus — was voted out of the House Budget Committee. The GOP plan is to pass this legislation in the House before Memorial Day. But that’s not the end of it. As Jessica Craven explained in her Chop Wood Carry Water column: “Remember, we have at least six weeks left in this process. The bill has to: Pass the House, Then head to the Senate where it will likely be rewritten almost completely, Then be passed there, Then be brought back to the House for reconciliation, And then, if the House changes that version at all, Go back to the Senate for another vote.” She adds, “Every step of that process is a place for us to kill it.” The bill is over a thousand pages long, and the American people will not get a chance to read it until it has passed the House. But, thanks to 5Calls , we know it includes:
Let's talk about our Eastern Shore Delegation, the representatives who are supposed to fight for our nine Shore counties in Annapolis, and what they actually got up to this session.
For the first time in recent memory, Virginia Democrats have candidates running in all 100 House of Delegates districts — a milestone party leaders and grassroots organizers say reflects rising momentum as President Donald Trump’s second term continues to galvanize opposition.
The 447th legislative session of the Maryland General Assembly adjourned on April 8. This End of Session Report highlights the work Shore Progress has done to fight for working families and bring real results home to the Shore. Over the 90-day session, lawmakers debated 1,901 bills and passed 878 into law. Shore Progress and members supported legislation that delivers for the Eastern Shore, protecting our environment, expanding access to housing and healthcare, strengthening workers’ rights, and more. Shore Progress Supported Legislation By The Numbers: Over 60 pieces of our backed legislation were passed. Another 15 passed in one Chamber but not the other. Legislation details are below, past the budget section. The 2026 Maryland State Budget How We Got Here: Maryland’s budget problems didn’t start overnight. They began under Governor Larry Hogan. Governor Hogan expanded the state budget yearly but blocked the legislature from moving money around or making common-sense changes. Instead of fixing the structural issues, Hogan used federal covid relief funds to hide the cracks and drained our state’s savings from $5.5 billion to $2.3 billion to boost his image before leaving office. How Trump/Musk Made It Worse: Maryland is facing a new fiscal crisis driven by the Trump–Musk administration, whose trade wars, tariff policies, and deep federal cuts have hit us harder than most, costing the state over 30,000 jobs, shuttering offices, and erasing promised investments. A University of Maryland study estimates Trump’s tariffs alone could cost us $2 billion, and those federal cuts have already added $300 million to our budget deficit. Covid aid gave us a short-term boost and even created a fake surplus under Hogan, but that money is gone, while housing, healthcare, and college prices keep rising. The Trump–Musk White House is only making things worse by slashing funding, gutting services, and eliminating research that Marylanders rely on. How The State Budget Fixes These Issues: This year, Maryland faced a $3 billion budget gap, and the General Assembly fixed it with a smart mix of cuts and fair new revenue, while protecting working families, schools, and health care. The 2025 Budget cuts $1.9 billion ($400 million less than last year) without gutting services people rely on. The General Assembly raised $1.2 billion in fair new revenue, mostly from the wealthiest Marylanders. The Budget ended with a $350 million surplus, plus $2.4 billion saved in the Rainy Day Fund (more than 9% of general fund revenue), which came in $7 million above what the Spending Affordability Committee called for. The budget protects funding for our schools, health care, transit, and public workers. The budget delivers real wins: $800 million more annually for transit and infrastructure, plus $500 million for long-term transportation needs. It invests $9.7 billion in public schools and boosts local education aid by $572.5 million, a 7% increase. If current revenue trends hold, no new taxes will be needed next session. Even better, 94% of Marylanders will see a tax cut or no change, while only the wealthiest 5% will finally pay their fair share. The tax system is smarter now. We’re: Taxing IT and data services like Texas and D.C. do; Raising taxes on cannabis and sports betting, not groceries or medicine; and Letting counties adjust income taxes. The budget also restores critical funding: $122 million for teacher planning $15 million for cancer research $11 million for crime victims $7 million for local business zones, and Continued support for public TV, the arts, and BCCC The budget invests in People with disabilities, with $181 million in services Growing private-sector jobs with $139 million in funding, including $27.5 million for quantum tech, $16 million for the Sunny Day Fund, and $10 million for infrastructure loans. Health care is protected for 1.5 million Marylanders, with $15.6 billion for Medicaid and higher provider pay. Public safety is getting a boost too, with $60 million for victim services, $5.5 million for juvenile services, and $5 million for parole and probation staffing. This budget also tackles climate change with $100 million for clean energy and solar projects, and $200 million in potential ratepayer relief. Public workers get a well-deserved raise, with $200 million in salary increases, including a 1% COLA and ~2.5% raises for union workers. The ultra-wealthy will finally chip in to pay for it: People earning over $750,000 will pay more, Millionaires will pay 6.5%, and Capital gains over $350,000 get a 2% surcharge. Deductions are capped for high earners, but working families can still deduct student loans, medical debt, and donations. This budget is bold, fair, and built to last. That’s why Shore Progress proudly supports it. Click on the arrows below for details in each section.
