April 21, 2020
By: Caity Witucki
Contributing Editor, Hot Topic Tuesday
Hot Topic Tuesday – The First Round of Funding for PPP Proves Successful
Last Friday SBA Administrator, Jovita Carranza and Treasury Secretary Steven T. Mnuchin issued a joint statement regarding the success of the first round of funding for the Paycheck Protection Program (PPP) and urging congress to pass additional funding.
Here are the highlights:
- The SBA processed more than 14 years’ worth of loans in less than 14 days.
- PPP provided payroll assistance to more than 1.6 million small businesses.
- Nearly 5,000 lenders participated in PPP, including many community banks and credit unions.
- About 20% of the amount approved was processed by lenders with less than $1 billion in assets.
- Approximately 60% of the loans were approved by banks with less than $10 billion in assets.
- No lender accounted for more than 5% of the total dollar amount of the program.
- 74% of the loans were for under $150,000, demonstrating the accessibility of the program to even the smallest of small businesses.
- PPP provided funds to a wide variety of industries in all sectors of the economy, including construction, manufacturing, food and hospitality services, health care, agriculture, and retail, among many others.
The first round of PPP funding ran out on Thursday, April 16, 2020. The Senate has introduced an expansion to the small business stimulus lending program. However, the bill remains under negotiations.
“The Paycheck Protection program is saving millions of American jobs and helping small businesses get through this challenging time,” says Carranza and Mnuchin in the joint statement. “We urge Congress to protect millions more American workers and their families by appropriating additional funding to support PPP.”
The Senate is expected to vote on additional funding for PPP later today or Thursday. The SBA will continue to inform its lending partners of new updates should Congress authorize additional funds.
SBA – Statement from Secretary Steven T. Mnuchin and Administrator Jovita Carranza on the Success of the Paycheck Protection Program