SBA’s PPP program runs out of funds before official deadline
The US Small Business Administration’s Paycheck Protection Program (PPP) has ended, as funding has run out more than two weeks before the program’s official May 31 deadline, sources have confirmed to News is my Business.
Sources not authorized to speak publicly have confirmed the information that was first reported by The New York Times.
According to official data for the latest round of the program, as of May 2, the SBA had approved a total of $866,128,283 million in PPP loans in Puerto Rico and more than $70,352,489 in the US Virgin Islands.
Moreover, the SBA has approved 25,648 PPP loans for businesses and nonprofits in Puerto Rico, more than twice the amount of such loans the agency reported at the beginning of March 2021.
For the USVI, the number of PPP loans also increased significantly to 1,066, almost three times the number of PPP loans from the March 5 report.
At the national level, the SBA has officially approved more than $258 billion according to the latest data. Congress appropriated $284 billion for the latest round of the PPP through H.R. 133, the Consolidated Appropriations Act, 2021.
The average 2021 PPP loan size for first draw loans is $18,704 and $77,895 for second draw loans. The overall average PPP loan for 2021 is $45,772.
According to the agency, 85.1% of all PPP loans issued in 2021 (totaling approximately 4.8 million loans) are for $50,000 and under. These loans represent 29.1% of all approved PPP funds.
At the national level, the industries receiving PPP approvals are led by the accommodation & food service sector with 15% of all PPP loans ($39.9 billion), and followed by construction with 12% ($31.8 billion), health & social assistance with 11% ($27 billion), professional, scientific & technical services with 10% ($27 billion), and manufacturing (8%).
The SBA has not made available updated loan forgiveness data.
Since the start of the program in 2020, the SBA has guaranteed more than 10.7 million PPP loans totaling more than $780 billion across the United States and its territories.
