Home News Local News $5 billion in new PPP loans made so far

$5 billion in new PPP loans made so far

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Small businesses have received more than $5 billion in Payroll Protection Program loans during the past week.

The U.S. Small Business Administration announced that the coronavirus-relief program opened Tuesday for all participating banks and lenders, regardless of size or how they are chartered.

From Jan. 11 until Jan. 14, the program was reserved for community financial institutions in an effort to ensure that loans went to underserved business owners, including minority, women and veterans. On Friday, small banks with $1 billion or less in assets could start lending.

According to information from the SBA, 60,000 PPP loans have been made by more than 3,000 lenders so far under the second funding round. The coronavirus-relief package that was part of the Consolidated Appropriations Act of 2020, signed into law on Dec. 27, made $284 billion available for the PPP program. Another $20 billion was allocated for SBA Economic Injury Disaster grants and loans.

Some businesses will be eligible for a second PPP loan. The SBA website, www.sba.gov, provides additional information.

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Scott Bucher, director of the Small Business Development Center of Roswell, affiliated with the SBA network, has said that some business owners could be wary of taking on more debt without any guarantee that state public health orders will allow their operations to remain open or operate at a level that is profitable. While all or a portion of loans are forgivable under certain conditions, businesses sometimes do not want to risk having debt, Bucher said.

Loans will be made under the PPP program until March 31 or until all the funding has been allocated.

The first phase of funding, created by the Coronavirus Aid, Relief and Economic Security (CARES) Act of March 2020, provided 5.2 million loans of $525 billion nationwide, including 22,105 loans in New Mexico for $2.24 billion.

SBA Administrator Jovita Carranza said the second phase of the PPP program already has helped tens of thousands of businesses and that the SBA “over-performed operationally” in providing guidance and rules ahead of the deadlines set by the new legislation.

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