April 17, 2020

SBA Report: 1.66 Million PPP Loans Made As Of April 16 

As of April 16, when funding for the program was exhausted, the Small Business Administration had approved 1.66 million loans totaling $342.3 billion through the Paycheck Protection Program, according to updated figures released by SBA today. Approximately 60% of those loans were made by community banks of $10 billion in assets or less. A total of 4,975 lenders were participating in the program as of that date, up from 4,664 from April 13.

In Missouri, a total of 46,481 loans were approved for $ 7,547,822,023.

The overall average loan size was $206,000, and the vast majority — 74% — of PPP loans approved were $150,000 and under. The construction sector has received 13.12% of the PPP funds allocated as of the report date. The professional, scientific and technical services sector received 12.65%, manufacturing received 11.96% and health care and social assistance received 11.65%.

“The Paycheck Protection Program is saving millions of American jobs and helping small businesses get through this challenging time,” said Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza in a joint statement accompanying the release of the data. “We urge Congress to protect million more American workers and their families by appropriating additional funding to support PPP.”

MBA and the American Bankers Association continues to strongly advocate for Congress to immediately authorize new funding for the PPP. Bankers and their small business customers are encouraged to contact the office of congressional leadership at 202-224-33121 and ask them to approve more PPP funding expeditiously.

ABA, Financial Groups: Banks Working To Ensure Americans Receive EIPs

In a letter to Sens. Sherrod Brown, D-Ohio, and Elizabeth Warren, D-Mass., the American Bankers Association and three other financial trade groups emphasized that the industry’s “highest priority is to ensure that economic impact payments reach Americans’ wallets quickly.” The groups underscored the importance of maximizing electronic payments, something ABA has advocated since the program was announced.
 
In response to concerns lawmakers raised about the garnishment of these payments, the groups noted that more clarity is needed to ensure that EIPs are considered as benefits subject to the federal exemption from garnishment. Without this legal clarity, “depository institutions have no discretion and are obligated to comply with applicable state laws and court-ordered garnishments,” the groups noted.

Crapo Seeks Clarity From Fed, Treasury On Paycheck Protection Program

In a letter to the Federal Reserve Board and the Treasury Department, Senate Banking Chairman Mike Crapo, R-Idaho, raised a number of outstanding issues with recently announced initiatives to bolster the economy in response to the coronavirus pandemic, including the Paycheck Protection Program.
 
Crapo urged guidance on:
  • participation in the PPP by lenders that are not currently approved
  • flexibility for businesses in currently ineligible industries to access the PPP
  • clear communication regarding the secondary market for PPP loans, guidance on loan forgiveness and a comprehensive hold harmless agreement
  • acknowledgement of the good faith effort by banks to roll out the program without full guidance

He also noted that the Fed’s Paycheck Protection Program Liquidity Facility must be widely accessible, including to a variety of non-depository institutions.

Agencies To Host Webinar On Coronavirus Loan Modifications, Reporting

The federal financial regulatory agencies will host a joint webinar at 2 p.m. Friday, April 24, to discuss the recent interagency statement for loan modifications and reporting for financial institutions working with customers affected by the coronavirus. Regulators will address accounting and regulatory reporting questions and clarify the interaction between current accounting principles and the CARES Act. Pre-registration is required, and questions may be submitted in advance to asktheregulators@stls.frb.org
 

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