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On May 4, 2021, the U.S. Small Business Administration (SBA) announced it has officially exhausted Paycheck Protection Program (PPP) funds for most lenders. The SBA began notifying trade associations that it is no longer accepting applications for new PPP loans from most lenders. This announcement comes a full month before the $292 billion program’s application deadline.
There is still an opportunity for some small business owners to receive PPP loans through community financial institutions (CFIs), which typically work with businesses in underserved communities. CFIs include Community Development Financial Institutions, minority deposit institutions and other qualifying small lenders. There is $8 billion in remaining funds available for new PPP applications through CFIs as part of a congressionally-mandated set aside. The agency has also set aside $6 billion for PPP applications that are still in review or need more information due to error codes.
As of May 2, 2021, CFIs have approved more than $19 billion across 748,581 loans during the second round of the PPP, with an average loan size of $25,614. Overall the SBA approved more than 5.6 million PPP loans totaling more than $258 billion since the program’s reopening on January 11, 2021. First-draw PPP loans accounted for $57.3 billion, and second-draw loans totaled nearly $201 billion.
If you have additional questions about the latest round of the PPP or completing your loan forgiveness application, our PPP loan consultants are here to help. Contact us for more information.
