A review of the data from the PPP loan program drew some noteworthy conclusions - some validating and some contradicting common perceptions about the program.

PROSPECT, KENTUCKY, UNITED STATES, April 16, 2020 /EINPresswire.com/ -- SbaLenders.com reviewed the SBA 7(a) loan data for the Payroll Protection Program (PPP) through April 13th and today issued a Report on its SBA Loan Program Conclusions. Findings in the report include:

• Businesses with over 200 employees were over 4 times more likely to have their loan processed and approved than small companies with 15 or fewer employees. Not only did banks prioritize their customers over non-customers, they also put their bigger customers ahead of their smaller ones. Many small businesses without existing banking relationships were completely shut out of the loan application process.

• Many businesses will not see their entire SBA loan forgiven without Congressional tweaks to the program, owing well over 20% of the loan amount after accounting for the forgiveness calculation as they fail to rehire due to a lack a demand from economic malaise and government mobility restrictions.

• Rural states (e.g., Nebraska, North Dakota, and Oklahoma) had a much higher percentage of their business receive PPP SBA loans than urban states (e.g., New York, California, and New Jersey).

• Some industries participated disproportionately more than others - manufacturing, retail, and construction participated heavily; wholesale trade, management companies, and finance and insurance did not.

• A $250 billion injection of more capital into the PPP program will lead to another mad dash for the funds as it is not clear that $250 billion is sufficient to cover all potential borrowers. The proposed $250 billion extension will not last more than a week, and anxieties will again be heightened as some borrowers will again be left out of the next tranche.

SbaLenders.com is a resource for entrepreneurs to find the best match for commercial loans and SBA loans. We track all loans processed through the SBA 7(a) loan program and provides detailed reports on loan trends so borrowers can quickly find an SBA bank where they can apply for an SBA loan. SBALenders.com is not part of or associated with the SBA or the U.S. government. For more information, visit www.sbalenders.com

Darren King
SbaLenders.com
+1 502-509-6204
email us here

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.