SBA Paycheck Protection Program loaned nearly $9B to Va. businesses
The $349B small business relief fund ran out Thursday.
Before the Small Business Administration’s (SBA) $349 billion Paycheck Protection Program (PPP) relief fund ran out Thursday morning, Virginia banks processed more than 40,000 applications totaling nearly $9 billion, the Virginia Bankers Association announced Friday evening.
Small businesses that received the forgivable loans are allowed to use the funds to meet payroll costs and pay mortgage interest, rent and/or utilities payments, but many applications didn’t gain SBA approval before funding ran out.
The U.S. Department of the Treasury reported today that the PPP loans provided assistance to more than 1.6 million small businesses in all states and territories, with more than 5,000 lenders participating. More than 70% of the loans were made for amounts less than $150,000.
“The PPP provided funds to a wide variety of industries in all sectors of the economy, including construction, manufacturing, food and hospitality services, health care, agriculture, and retail, among many others,” U.S. Treasury Secretary Steven T. Mnuchin said in a statement.
Before the PPP application process opened in early April, there were only 1,700 SBA-approved lenders in the United States, which nearly tripled to 4,700 by Wednesday, VBA President and CEO Bruce Whitehurst said.
The heat is now on Congress to allocate more funding. There’s an additional $250 billion on the table to be used for PPP funding.
“As we wait for Congress to allocate more funding to PPP, small business owners should continue to consult with their bank, as there are other programs and alternatives available and likely more coming soon,” Whitehurst said.