More Than $5B of PPP Loans Approved in First Week

About 600,000 businesses received more than US$5 billion in Paycheck Protection Program (PPP) loans via 3,000 lenders during the first week of the second round of the U.S. Small Business Administration’s program, which began January 11, Reuters reports.

The first round of PPP loans in April went to 475,000 borrowers and totaled more than $52 billion. However, many small businesses did not receive these loans and those businesses that borrowed more than $2 million were being audited by late April. This time around borrowing was restricted to underserved communities who were left out previously.

Late last year, former U.S. President Donald Trump signed a relief package which included $284 billion for PPP loans for businesses that missed out on the program and for the ones seeking a second round of aid, according to Forbes. Community financial institutions, which include Community Development Financial Institutions (CDFI) and Minority Depository Institutions, were given priority to submit PPP applications.

“This program was made available through Congress to help you, and if you qualify, I really think it’s advantageous to small businesses,” says David Reiling, CEO of Sunrise Banks, a Minnesota-based CDFI that began accepting PPP loan applications. “Forgivable loans don’t come around every day.”