December 1, 2020
Hot Topic Tuesday — Half of Small Business Say They Need Additional Funding in the Next 12 Months
The Paycheck Protection program (PPP) provided over $525 billion to 5 million small businesses across the United States. However, since the program ended nearly four months ago, the need for pandemic recovery funds has increased. According to a recent study published by NFIB, about half (52%) of small business owners anticipate needing additional financial support over the next 12 months and 75% of small business owners say they would apply or consider applying for a second PPP loan if it was made available to them.
Numerous trade groups and congressional leaders have discussed repurposing the $134 billion left over from the second round of PPP funding to provide additional aid to particularly impacted small businesses. However, many lenders and SBA officials are still in the process of developing a better understanding of how the CARES Act loans are to be handled.
Here is a summary of where we are today:
- 5,460 lenders aided in processing 5,212,128 loans worth $525,012,201,124.
- The top PPP lenders were JPMorgan Chase, Bank of America, PNC Bank, Truist Bank, Wells Fargo, TD Bank, KeyBank, U.S. Bank, Zions Bank, and M&T Bank.
- 87.4% of the total number of loans in the first two rounds of PPP were worth $150,000 or less.
- There have been 28,982 loans over $2 million.
- California received the most loans with 623,360 worth $68,644,418,670 while American Samoas received the least with 296 worth just $12,233,986.
- Health Care and Social Assistance small businesses received the most loans by dollar amount ($67,802,899,625) but Professional, Scientific, and Technical Services received the most loans (681,111).
- As of November 22, 2020, lenders had made forgiveness decisions on 595,144 worth $83,213,856,942 and the SBA had made 367,321 decisions worth $38,432,262,125.
Join the Coleman Report Live daily show at 1:00 PM ET to stay up to date on congressional decisions related to COVID-19 aid for small businesses.