- SBA says it has approved 1.4 million Paycheck Protection Program loans totaling $103 billion
- Connecticut businesses have received $1.5 billion under the program
- SBA says it is taking steps to increase “equitable access” to loans
Loans approved through the Paycheck Protection Program topped $100 billion last week, according to the U.S. Small Business Administration. This sum included $1.5 billion in loans to Connecticut companies.
For the week ending Feb. 7, SBA data shows that 1.29 million loans totaling $100.9 billion had been approved. The figure was up to $103 billion to 1.4 million loans, according to a Wednesday SBA press release.
The SBA announced that it is working with President Joe Biden’s administration to take steps to “increase equitable access to underserved small businesses, to assure the integrity of the program, and to promote rapid and efficient distribution of funds.” These steps will include efforts to reach the nation’s smallest businesses, assist businesses in rural community, and increase partnerships with community development financial institutions and minority depository institutions to improve access to economic relief in underserved communities and minority communities.
The SBA says it is also continuing efforts to resolve data mismatches and eligibility concerns which have hindered hundreds of thousands of businesses seeking access to second draw loans. These steps include enabling lenders to directly certify the eligibility of borrowers whose applications have validation errors, allowing lenders to upload supporting documentation for these borrowers during the forgiveness process, and creating additional communications channels with lenders.
A stimulus bill passed in December approved an additional $284.5 billion for PPP loans. Including the loans approved in the program’s first rounds, approximately 6.4 million loans totaling $623.4 billion had been approved as of Feb. 7.
In the latest round, 82 percent of all loans are for less than $100,000 and 28 percent have gone to businesses in rural communities. About one-quarter of all funding was disbursed in loans falling between $350,000 and $1 million.
The average second draw loan, for borrowers who previously received PPP funding, was just over $100,000, while the average first draw loan was $21,134. The majority of funding, $93.4 billion, was approved for second draw loans.
Businesses have until March 31 to apply for a PPP loan. Eligibility rules have also been updated for the latest round of loans, with requirements directing funding to smaller businesses and those that have suffered major revenue losses due to the COVID-19 pandemic.
