Last week we were all in a state of frenzy helping clients try and understand the rules of engagement from banks and the SBA to get loan applications submitted while insisting that small business owners get applications in quickly.
As we thought, demand for funding through the PPP program has been huge. As of April 13, just 10 days after the program opened, the SBA reported that over $247 billon has approved more than 71% of the total funding for the program.
Although more than $247 billion in funding has been approved, many owners have yet to see a penny. The SBA had indicated lenders have to fund an approved loan within 10 days, but with so many applications in the pipeline, we understand why many loans haven’t funded yet.
Georgia has seen 29,423 loans approved through April 13 worth $6.7 billion, or about 2.7% of the total allocation. The leading sectors getting funding so far are construction, and manufacturing. Further, PPP applications for self-employed workers opened on April 13, which will add to loan processing time.
It is unclear if Congress will make additional funding available given the continuing political dysfunction in Washington. If you haven’t applied yet, get it done quickly!