The Paycheck Protection Program (PPP)—an important small business aid program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act—is providing critical support for America’s small businesses across the country. In fact, a report issued yesterday by the Small Business Administration (SBA) shows more than 70% of all loans approved in the program’s second round have been for $50,000 or less, rushing relief to our smallest businesses and their workers.
PPP loans by the numbers:
- More than 2.2 million loans have been processed so far in the second round of the program.
- Round two loans have provided more than $175 billion in support to America’s small business workforce.
- Overall in the second round, the average loan amount has been $79K.
- Lenders with less than $10 billion in assets loaned 32% of all approved loan dollars in the second round of funding.
- Lenders with less than $1 billion in assets, along with non-bank lenders, accounted for nearly 500,000 round two program loans. (These lenders include Community Development Financial Institutions, Certified Development Companies, Microlenders, Farm Credit lending institutions, and FinTechs)
- In total, the Paycheck Protection Program has processed more than 3.8 million loans totaling more than $500 billion in support for America’s small businesses.
Here are just a few examples of the small businesses that have received PPP assistance across the country:
- The shutdowns caused by coronavirus forced the Cheddar Box Café in Middletown, Kentucky to lay off most of their staff and reduce their business hours. However, after being approved for a PPP loan the business was able to rehire some of their staff and extend their business hours.
- Wagner Farms in Poestenkill, New York faced a crippling reduction in demand for their dairy products due to coronavirus related closures, but with the help of a PPP loan they were able to retain their employees and stay in business.
- Sevy’s Grill in Dallas, Texas was forced to close their doors due to coronavirus shutdowns, leaving their workers without income. Thanks to a PPP loan they will be able to reopen for to-go service and bring some of their employees back.
Visit Financial Services Committee Republicans’ website for additional resources and updates on efforts to mitigate the economic impact of coronavirus on consumers.