The SBA will soon be enacting for the benefit of small businesses the programs included in The American Rescue Plan Act signed into law on March 11 by President Biden. The Act will provide more funds for existing programs, as well as establish new programs to assist those with the greatest impact of the virus.
The following was just released by the US SBA:
Disaster Loans: Extended the deferment periods for all disaster loans, including COVID-19 Economic Injury Disaster Loans, until 2022
- All SBA disaster loans made in calendar year 2020, including COVID-19 EIDLs, will have a first payment due date extended from 12 months to 24 months from the date of the note.
- All SBA disaster loans made in calendar year 2021, including COVID-19 EIDLs, will have a first payment due date extended from 12 months to 18 months from the date of the note.
Shuttered Venue Operators Grant
- Applications are slated to open in early April (no exact date yet)
- Preliminary application checklist was updated March 11 and FAQs were updated March 12
- NOTE: the American Rescue Plan Act amended the Economic Aid Act of Dec. 27, 2020 to allow those who applied for and received a PPP loan after Dec. 27, 2020, to also apply for a SVOG
COVID-19 Relief Program Report – updated with data as of March 11, 2021; key PPP points include:
- More than 2.5 million PPP loans totaling more than $168 billion have been approved in the 2021 PPP funding round
- 85% of the PPP loans in the 2021 funding round are for less than $100,000
- 92% of PPP loans in the 2021 funding round have gone to businesses with 20 employees or fewer
- 39% of PPP loans have completed the forgiveness process and across all loan sizes, over 99% of loan value has been forgiven
- Non-bank lenders are reaching underserved businesses with a larger proportion of their loans; Community Financial Institutions (which include CDFIs, MDI, microloan intermediaries and CDCs which traditional provide capital to underserved markets).
- The current round of PPP is on pace to pass some of the defined set-asides in the statute.
Paycheck Protection Program
- On March 9, the SBA released a Fact Sheet highlighting how the PPP exclusivity period and other changes increased equitable access to the program
- The deadline for lenders to get PPP loan applications into the SBA remains March 31, 2021 (lenders will need an SBA ETRAN loan authorization number by 11:59pm on March 31)
- Revised docs as of March 12: FAQs, How to calculate First Draw, How to calculate Second Draw; updated PPP-specific date will likely post today
- Newest Paycheck Protection Program Report, with approvals as of March 14, 2021. Over 7.88 million PPP loans totaling more than $703.8 billion have been guaranteed by the SBA since this COVID-19 economic aid program began in 2020.
For the newest round of PPP funding, which began on January 11, 2021, SBA has guaranteed over 2.7 million PPP loans for more than $181.4 billion after submission by 5,209 participating lenders. These numbers represent an increase from last week of roughly 300,000 loans; an increase of 25.2 billion net approval dollars; and an increase of participating lenders of 24.
PPP dollars are assisting the smallest of small businesses, a key priority of the Biden-Harris Administration. The data points bear that out:
- The overall average for 2021 PPP loan size is at its lowest point in the program, approximately $66,000, falling by $2,000 last week
- For historical reference, last week the average loan size was $68k, the week before $71k, preceded by $73k and $75k respectively.
- 8% of 2021 PPP loans are for $50,000 or less. This is the highest percentage of PPP loans right now and an increase in count share of 1.3% since last week.
- Over 91% of 2021 PPP loans are for $150,000 or under.
This data further confirms the most recently issued SBA COVID-19 Relief Program Report as of Mar. 11, 2021 which shows the current round of PPP is successfully reaching smaller borrowers:
- 85% of the PPP loans in the 2021 funding round are for less than $100,000
- 92% of PPP loans in the 2021 funding round have gone to businesses with 20 employees or fewer
- 39% of PPP loans have completed the forgiveness process and across all loan sizes, over 99% of loan value has been forgiven
PPP Approvals by State/Territory in the Atlantic Region:
NY 182,944 PPP loans $14,896,337,34
- An increase from 159,782 PPP loans (+23,162) PPP loans from the last week, and an increase of approved dollars from $13,183,759,422 (+$1,712,577,926) in the same time.
- New York State has the second largest amount of net approved PPP dollars for 2021, behind only California. It has the fourth largest number of PPP loans that have received the federal guarantee, behind California, Texas and Florida.
NJ 71,587 PPP loans $5,798,481,906
- An increase from 63,732 PPP loans (+7,855) from the last report, and an increase of approved dollars from $5,206,721,178 (+$591,760,728) in the same time.
PR 13,638 PPP loans $553,431,054
- An increase from 12,154 PPP loans (+1,484) from the last report, and an increase of approved dollars from $498,193,502 (+$55,237,552) in the same time.
USVI 454 PPP loans $43,108,492
- An increase from 375 (+79) PPP loans from the last report, an increase of approved dollars from $36,210,686 (+$6,897,806)
Top Industries Receiving PPP Approvals
Accommodation & Food Service (NAICS Code 72) tops the list with 17% of all 2021 PPP loans approved, followed by
- Construction (13%)
- Professional, Scientific & Technical Services (11%)
- Health & Social Assistance (11%)
- Manufacturing (9%)
