Business Insider Intelligence
This is an update to our May and July PPP Small Business Loans reports. You can purchase all three reports now for the price of one.
This report outlines the final numbers after the second tranche’s summer expiry, and will be available for free to those who have purchased any of the two preceding versions of this report.
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In April, the US government launched the historic Paycheck Protection Program (PPP) to provide financial assistance to small businesses struggling amid the coronavirus pandemic. A staggering $659 billion was allocated to the PPP across two separate installments, with funds for the $349 billion first round being tapped out in less than two weeks. But uptake slowed during round two as larger businesses returned loans following public outcry, while complex requirements and murky loan forgiveness guidelines deterred small businesses from applying. At the program’s close on August 8, $134 billion was left undrawn.
Banks that acted decisively in deploying PPP loans stood to earn new clients and goodwill from regulators, as well as a slice of billions in loan fees. Despite early missteps, they achieved much of what they set out to do, getting $525 billion of much-needed aid to US small businesses. Some banks had hitches in their PPP loan applications, funds weren’t going to the areas that needed them the most, and larger loans were favored by several institutions—but most of these issues were mitigated or rectified by the end of the program in August. Now their objective has pivoted to processing loan forgiveness applications, a task that might be even more strenuous than approving loans.
In PPP Small Business Loans — the final of three updates — Insider Intelligence looks at how different lenders fared at implementing the PPP …read more
Source:: Business Insider