The second round of Paycheck Protection Program funding has been open for two weeks and it appears funds are going to the intended recipients.
As of Jan. 24, there have been 400,580 applications filed and approved for total loan proceeds of just over $35 billion. These applications were processed through the Small Business Administration by over 4,500 lenders.
The statistics provide a simple average loan balance of approximately $87,000. This balance is far lower than the average loan amounts approved under the first round of funding under this program, which indicates many small businesses are getting greater relief.
During the first round of the funding, many large corporations received funding, essentially blocking out medium and small businesses, to whom the program was geared.
The biggest challenge in the current application process continues to be instability of the SBA processing platforms and increased validation and review processes to curtail the number of fraudulent loan applications being submitted.
At this point, all communication received by Zinner & Co. indicates there will be ample funding available to meet the needs of our clients, as the total approved funds available under the program total $284.5 billion. However, we stress patience as a virtue in this process, as the process does take time to complete.
If you need assistance in applying for a loan under the Paycheck Protection Program, we can help!
Our dedicated Zinner & Co. recover specialists are currently working to help our clients gain approval for the second round of PPP loans. Give us a call today and learn how we can help your organization.
