PPP nearly out of loan funds

Also, SBA releases loan data for 2021 loans

      The Small Business Administration shut down applications for nearly all Paycheck Protection Program loans as of May 4 due to lack of funds. That’s nearly a month before the official deadline on May 31.

      The SBA said only community financial lenders--who primarily service minority communities--currently are allowed to continue submitting applications until approximately $8 billion in remaining funds are depleted.

      Lenders were informed of the shutdown of applications early this month.

      “It is our understanding that lenders are now getting a message through the portal that loans cannot be originated. The PPP general fund is closed to new applications,” the National Association of Government Guaranteed Lenders wrote in an alert to its members on May 4. The alert was obtained by the New York Times.

PPP data released

      The SBA announced that as of May 2, the SBA had distributed $780 billion to nearly 11 million companies under the two-phase PPP program established last year. There was $522 billion distributed in the first round and $258 billion in the second round.

      In 2021 alone, 5 million small firms with 10 or fewer employees received a total of $103 billion in PPP loans.

      Here is the SBA’s breakdown of loan sizes in 2021:

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