SBA says PPP loans are getting smaller in the second round of lending
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The Small Business Administration just released new data on its Paycheck Protection Program. The SBA says it has approved over $510 billion in forgivable loans, which are meant to keep people on payrolls, over both rounds of the program.
Now, that average has dropped to about $120,000.
“It was cut in half or more in every single state between rounds one and two,” said Curt Long, chief economist at the National Association of Federally-Insured Credit Unions.
He says the SBA made some changes after the second round started, such as temporarily giving smaller lenders exclusive access to the funds.
“So that allowed a lot of credit unions and other small lenders to get those applications that had been stacking up processed, Long said.
Smaller businesses with smaller loan requests had a lot of competition for loans in the first round, says Luke Wake, senior staff attorney with the National Federation of Independent Business.
“‘Bigger small businesses,’ those closer to the 500 employee mark, were snatching up those loans,” he said.
Wake says the falling average loan size is a sign that smaller businesses are finally getting loan approvals.
COVID-19 Economy FAQs
What do vaccines mean for economic recovery?
COVID-19 is not going anywhere anytime soon, according to expert witnesses who testified at a recent hearing held by the Joint Economic Committee. Put simply, we can’t eradicate the virus because it infects other species, and there will also be folks who choose not to get the vaccine or don’t mount an immune response, according to Dr. Céline Gounder at NYU School of Medicine & Bellevue Hospital. “That means we can’t only rely on vaccination,” Gounder said. She said the four phases of recovering from the pandemic are ending the emergency, relaxing mitigation measures, getting to herd immunity and having long-term control.
Can businesses deny you entry if you don’t have a vaccine passport?
As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.
What do I need to know about tax season this year?
Glad you asked! We have a whole separate FAQ section on that. Some quick hits: The deadline has been extended from April 15 to May 17 for individuals. Also, millions of people received unemployment benefits in 2020 — up to $10,200 of which will now be tax-free for those with an adjusted gross income of less than $150,000. And, for those who filed before the American Rescue Plan passed, simply put, you do not need to file an amended return at the moment. Find answers to the rest of your questions here.
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