July 8, 2020
By: Caity Witucki
Contributing Editor, C-Suite Wednesday
C-Suite Wednesday – Less Than Half of SBA Lenders Plan to Continue Accepting PPP Applications
According to the latest polls conducted during the Coleman Report Live daily show, less than half of SBA lenders (41%) plan to continue accepting PPP applications through the new August 8, 2020 deadline. This downturn in PPP participation by SBA lenders may stem from unfavorable changes made pursuant to the recently enacted Paycheck Protection Program Flexibility Act. Additionally, lenders remain hesitant due to the lack of forgiveness guidance.
Here are the highlights from this week’s polls:
- Only 15% of SBA lenders say they are planning on participating in the Main Street Lending program. 65% say they are hesitant because they do not understand how to process Main Street Lending Program loans.
- A little over half (58%) of SBA lender respondents say Congress should allow small businesses to take out a second PPP loan.
- 4 out of 5 lenders believe PPP loans under $150,000 should receive blanket forgiveness with a simple forgiveness application.
- 75% of SBA lenders say they do not anticipate PPP funding running out before the newly enacted August 8, 2020 deadline.
- 7 out of 10 lending institutions have received all or most of their PPP processing fees.
- Only 4% of SBA lenders expect to outsource their PPP loan portfolio.
- Overall, most lenders feel that the SBA and Treasury have done a good (38%) or fair (32%) job at implementing PPP. However, 26% say that the SBA and Treasury have performed below average.
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