C-Suite Wednesday – Coronavirus Impact Report on SBA Lending Activity and Operations

July 15, 2020

By: Caity Witucki
Contributing Editor, C-Suite Wednesday

C-Suite Wednesday – Coronavirus Impact Report on SBA Lending Activity and Operations

According to the latest polls conducted during the Coleman Report Live daily show, most lenders feel that the SBA and Treasury have done a good (38%) or fair (32%) job at implementing PPP. However, many lenders feel that the industry’s response to the ongoing coronavirus pandemic remains confusing and continues to impact lending activity and daily operations.

Here are the highlights from this week’s polls:

• 7 out of 10 SBA lenders have returned to their workplace. Of those who have not returned, 37% expect to return this fall and 20% do not expect to return until 2021.
  
  
• 1 out of 4 SBA lenders expect their 2020 default rates to be over 10%.
  
  
• 67% of lenders said that they had a borrower return PPP funds.
  
  
• Although the CARES Act allows SBA lenders to do PPP loans for non-profits, 7 out of 10 of the SBA lenders said that less than 10% of their PPP loan portfolio funded non-profits. 
  
  
• Nearly 1 in 5 SBA lenders said they have seen an increase in SBA disaster loans in June and July 2020.
  
  
• 28% of regulators are now requiring SBA lenders to calculate PPP debt ratio amounts for 504 loans. 
  
  
• 65% of SBA lenders said that their construction credit box tightened in 2020 and 60% said their commercial real estate credit box has tightened.
  
  
• 1 out of 5 lenders said that they have recently seen false or fraudulent loan documents.
  
  
• Over $130 billion remain available in PPP. However, less than half of SBA lenders (41%) plan to continue accepting PPP applications through the new August 8, 2020 deadline. 

To receive the latest industry updates, please join the free Coleman Report Live daily show at 1:00 PM Eastern.