SBA provides insight into latest PPP lending activity
A press release from the U.S. Small Business Administration on Feb. 22 shared several statistics that the agency said show it is prioritizing “smallest small businesses” with its latest round of program title loans. paycheck protection. The percentage comparisons are with the PPP funding rounds that took place in the spring and summer of 2020.
For companies with less than 10 employees, the share of financing is up by almost 60%.
For businesses in rural communities, the share of financing has increased by nearly 30%.
The share of funding distributed by community development finance institutions and minority depositories has increased by over 40%.
“While the data reported shows that we have made real progress in ensuring that these funds reach underserved communities, we believe we can still do better,” said Michael Roth, senior advisor to the SBA, in the statement.
To make these improvements, the SBA announced changes to the PPP application process. It established an exclusive 14-day PPP loan application period for businesses and nonprofits with less than 20 employees that began on February 24. And, starting earlier this month, the agency said it:
- Allow sole proprietors, independent contractors and independent workers to receive greater financial support by revising the PPP funding formula for these categories of applicants;
- Remove an exclusionary restriction on access to P3s for small business owners who have previously been convicted of the crime of non-fraud, in line with a bipartisan congressional proposal;
- Eliminate restrictions on access to P3s for small business owners who have had difficulty making federal student loan repayments by eliminating delinquencies and defaults on federal student loans as preventing participation in P3;
- Ensure access to non-citizen small business owners who are legal residents of the United States by specifying that they can use their Individual Tax Identification Number (ITIN) to apply for the PPP.
“The SBA is a front-line agency working to create an inclusive economy, focused on women-owned, minority, low- and moderate-income, rural and significantly underserved communities,” said Roth.