- 50% of funds in second round of program have been processed
- Average loan size has fallen to $79,000
- The number of loans is already more than first round
- New York, New Jersey get bigger share of funds
Over 2 million small business loans worth $175 billion were approved under the Paycheck Protection Program between April 27 and May 1. This is according to a new report published by the Small Business Administration over the weekend.
The low-interest, forgivable loan program was replenished after the fourth stimulus package was signed by the president on April 24. For the second round, $320 billion was authorized and half of it has already been processed. Some loopholes were closed this time around to prevent public companies accessing the funds. They received loans worth more than $1 billion, according to a New York Times analysis, and have been urged by the Treasury to return the money by May 7.
We can see in the latest report signs that the aid is now being more fairly distributed. For example, the average loan size has fallen from $206,000 during April 3 to April 16 to $79,000 between April 27 and May 1. The number of loans so far is already more than the entire round 1. Companies receiving over $5 million this time account for 6.12% of the total pot, down from 9.03%. Those receiving loans worth between $2 million and $5 million now account for 10.3% of the money, down from 18.7%. Worse-hit states like New York and New Jersey are also receiving a bigger share in the second round of funding.
"Since Round 2 of PPP loan processing began on April 27, 2.2 million loans have been made to small businesses which surpasses the number of all loans made in PPP Round 1. The total value of these 2.2 million loans is over $175 billion. Notably, the average loan size in Round 2 is $79,000, yet another indicator that the program is broadly based and assisting the smallest of small businesses," said U.S. Secretary of the Treasury Steven T. Mnuchin and SBA Administrator Jovita Carranza in a statement.
It's unclear if more funding is forthcoming soon. White House National Economic Council director Larry Kudlow said on CNN’s "State of the Union" Sunday that the administration isn't working on more stimulus at the moment. "There may well be additional legislation. There’s kind of a pause period right now," he said.