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.
Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies.
Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.
Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.