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TD Bank, N.A.

Lender or loan platform

PPP
Type
Company or group
Role
Lender or loan platform
Programs
PPP
Updated

The profile

The American bank of Toronto-Dominion made 133,140 PPP loans for $12.3 billion, only for existing customers. Its parent said PPP made up more of its commercial lending than at its peers: "we did over-index."

  • Type: National bank; PPP lender
  • Parent: The Toronto-Dominion Bank

TD Bank made 133,140 Paycheck Protection Program loans for $12.3 billion, in the SBA's loan file, eighth among all lenders by dollars.1 Priced loan by loan under the SBA's fee schedule, they carry about $497.9 million in processing fees.12 Its Canadian parent described the fees as "generally ranging from 1-5% of the loan's value at origination," amortized over the life of each loan, "with any unamortized amount upon forgiveness being recognized immediately as income."3 It never reported a total. How Much Did TD Bank Make From Pandemic Relief? works through the figures.

Customers only

TD's PPP page on April 9, 2020 read: "At this time, TD Bank is only accepting applications from Existing TD Business Customers. Customers must have a deposit account at TD Bank to receive funding."4 In the first round, April 3 to 16, the SBA approved 25,904 TD loans for $5.76 billion.1 Four economists found that TD made 1.83 percent of first-round PPP dollars while holding 0.687 percent of the small-business loan market at the end of 2019.5

The parent's 2021 annual report counted about 97,000 TD loans, US$8.7 billion, forgiven in the year to October 31, 2021.3 In December 2021 its chief financial officer told analysts that "PPP revenue contributed about US$110MM to NII and 16 basis points to NIM" that quarter.6 In March 2022 Leo Salom, head of the U.S. bank, said TD had extended 130,000 PPP loans "at a time that those clients needed it, and certainly we're very proud of that. But we did over-index," meaning PPP loans made up a larger share of its commercial lending than at other big and regional banks.7

The agents

The April 2020 class actions alleging that banks moved bigger loans to the front named JPMorgan, Bank of America, Wells Fargo and U.S. Bank, not TD.8 Agents did sue TD. A Massachusetts accountant's complaint alleged that "TD Bank's policy is not to ask whether Agents assisted with PPP loan applications and not to pay Agents the fees they are entitled to."9 TD was also among the lenders named in a Florida agent-fee suit listed on the schedule of actions before the Judicial Panel on Multidistrict Litigation, which refused on August 5, 2020 to combine the agent-fee cases.1011 Courts that reached the merits held that lenders owed agents nothing without an agreement; The Agents Got Nothing follows them.

Sources

Notes

  1. SBA PPP FOIA loan-level data, release of Sept. 30, 2024, loans with TD Bank, National Association as originating lender, priced under 85 FR 20811, 86 FR 3692 and 86 FR 3712; see the lender page. Original: SBA PPP FOIA loan-level data (original: data.sba.gov · stored capture) ↩
  2. SBA interim final rule, Paycheck Protection Program, 85 FR 20811 (Apr. 15, 2020). ↩
  3. TD Bank Group 2021 Annual Report, MD&A (Exhibit 99.2 to Form 40-F, filed Dec. 2, 2021). Original: https://www.sec.gov/Archives/edgar/data/947263/000119312521346760/d206742dex992.htm ↩
  4. TD Bank, "COVID-19 SBA and CARES Act Loans" web page (archived Apr. 9, 2020). Original: https://www.td.com/us/en/small-business/covid-sba/ ↩
  5. Granja, Makridis, Yannelis and Zwick, "Did the Paycheck Protection Program Hit the Target?," Journal of Financial Economics (2022), Table 1. ↩
  6. TD Bank Group Q4 2021 earnings call transcript (Dec. 2, 2021). Original: https://www.td.com/document/PDF/investor/2021/2021-Q4_Transcript_F_EN.pdf ↩
  7. TD Bank Group Q1 2022 earnings call transcript (Mar. 3, 2022). Original: https://www.td.com/content/dam/tdcom/canada/about-td/pdf/quarterly-results/2022/2022-Q1_Transcript_F_EN.pdf ↩
  8. Banking Dive, "Big banks chased larger PPP loans for fees, lawsuit says" (Apr. 21, 2020). Original: https://www.bankingdive.com/news/lawsuit-jpmorgan-wells-bofa-us-bank-ppp-loans-fees/576417/ ↩
  9. Complaint, Guerriero v. Bank of America, N.A., No. 1:20-cv-11267 (D. Mass. July 6, 2020), Dkt. 1, para. 77. Original: https://storage.courtlistener.com/recap/gov.uscourts.mad.223101/gov.uscourts.mad.223101.1.0.pdf ↩
  10. Schedule of actions, In re Wells Fargo PPP Litigation, MDL No. 2954 (J.P.M.L. June 9, 2020). ↩
  11. Order denying transfer, In re Paycheck Protection Program (PPP) Agent Fees Litigation, MDL No. 2950 (J.P.M.L. Aug. 5, 2020). Original: https://www.jpml.uscourts.gov/sites/jpml/files/MDL-2950-Order%20Denying%20Transfer-7-20.pdf ↩
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