May 5, 2020
By: Caity Witucki
Contributing Editor, Hot Topic Tuesday
Hot Topic Tuesday – SBA Administrator and Treasury Secretary Issue Joint Statement on the Second Round of PPP Funding
On Sunday, SBA Administrator, Jovita Carranza and Treasury Secretary Steven T. Mnuchin issued a joint statement regarding the success of the second round of funding for the Paycheck Protection Program (PPP).
According to the statement, PPP is continuing to provide critical support to millions of small businesses and tens of millions of hardworking Americans. Here are the highlights:
- The SBA has processed 2.2 million loans in the second round of PPP funding (37.5% more than the total amount of PPP loans during the first round of funding).
- The total dollar value of the second round of PPP funding is over $175 billion as of May 3, 2020.
- The average loan size is $79,000, an indicator that the program is assisting even the smallest of small businesses.
- Nearly 500,000 loans have been made by lenders with less than $1 billion in assets and non-banks.
- Some of the most active lenders are Community Bankers, Community Development Financial Institutions, Certified Development Companies, Microlenders, Farm Credit-lending institutions, and FinTechs.
- Over 850,000 loans (about one-third of the 2.2 million loans) have been made by lenders with $10 billion of assets or less.
- In total, the SBA has processed over 3.8 million PPP loans for more than half a trillion dollars of economic support in less than one month.
“SBA systems are processing loans so lenders can disburse funds quickly,” Carranza and Mnuchin say in the joint statement. “We encourage all eligible lenders to participate and all eligible borrowers that need this assistance to work with an approved lender to apply.