Apr 24, 2020, 5:03pm EDT
The U.S. Small Business Administration is readying to dole out billions more in loans for businesses nationwide.
In a joint statement issued Friday afternoon, SBA Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin said the agency would begin accepting new PPP loan applications at 9:30 a.m. on Monday.
“We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously,” they said.
The SBA has been preparing its system to handle a deluge of applications – many of the larger banks saw tens of thousands of applications during the program’s quickly depleted first round, and some have continued to prepare applications in the days since the funding ran out.
“Now is the time to get in contact with your lender,” said Rob Scott, SBA Great Lakes Administrator. “We do not have a queue system so we have no backlog. So when we open the system, the banks will be entering their own backlogs.”
The first round of forgivable loans through the PPP sent $342.3 billion to about 1.6 million businesses nationwide, which critics point out was a small slice of the estimated 30 million small businesses operating in the United States. Launched April 2, the initial funding was gone in about 14 days. The second round of PPP has $310 billion available.
All told 4,975 lenders participated in the first round. The SBA has published a list of financial institutions offering loans this round. Some of the participating regional and community banks during the last PPP round included Veritex Community Bank, Independent Financial, T Bank and Vista Bank.
Some local leaders recently gave the Dallas Business Journal insights into what applicants should expect the second time around.
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