On Sunday, the Small Business Administration and the Treasury Department released a joint report on Paycheck Protection Program funding for the second round of the program, and Florida is once again one of the biggest beneficiaries.
During the first week of the second round — which began on April 27 and lasted through May 1 — almost 186,000 loans were approved for Florida, for a total approved amount of $12.2 billion. Only California was approved for more loans, and only California, Texas and New York were approved for more money.
As of May 1, more than 2.2 million loans have been approved across the country during the second round, for a total of $175.7 billion. The federal government has set aside $310 billion for the second round of the program, following the exhaustion of $349 billion for the first round.
In the first round of funding, Florida was approved for just under 89,000 applications for a total dollar amount of $17.86 billion. Nationally, more than 1.6 million loans were approved for the first round, with an overall average value of $206,000.
The average loan size for the second round dropped considerably, down to $79,000. This is partially due to the processing of more applications from independent contractors and self-employed workers, many of whom did not get processed in the first round of funding.
The second round of the PPP was plagued by technical glitches on the first day as the number of submitted applications overwhelmed the SBA’s ETRANS system.
“It is like molasses going uphill,” was how First Citrus Bank President and CEO Jack Barrett described the state of the system on Monday.
But the SBA was able to get the system back to full speed on Tuesday, and local banks have been quickly moving through applications since then. Some are available to accept new clients.
It remains unclear if there will be a third round of the PPP. On Sunday, National Economic Council Director Larry Kudlow said on CNN’s “State of the Union” that a third round of the program could be necessary but that no decision had been made.
Click here to view original article in the Tampa Bay Business Journal