PPP: $175 billion in small business loans given out in second round

Treasury Secretary Steve Mnuchin and Small Business Administration Administrator Jovita Carranza said in a joint statement that the average size of a loan granted during the second iteration of the program, which began Monday, was $ 79,000.

"The Paycheck Protection Program provides critical support to millions of small businesses and tens of millions of hard-working Americans," Mnuchin and Carranza said in the statement, adding to the average loan size set "the program is broad-based and helps the smallest of small businesses."

The program, which provides loans to small businesses struggling in the middle corona virus pandemic, has been plagued by technical hiccups and questions about lenders prioritized the businesses that needed the most money after several wealthy schools and deep-pocketed companies received loans. After the initial Congress allocated $ 454 billion until the program ran dry last month, lawmakers filled the fund with another $ 310 billion.

The administration said that since the launch of PPP, 3.8 million loans totaling more than $ 500 billion have been granted.

Lenders said last week that they still struggling to upload applications Tuesday into the agency's database. But the technical flaws are improving – and while frustrating – are just the tip of the iceberg for lawmakers and aides looking at this and other well-meaning programs that received overwhelming bipartisan support, under a renewed scrutiny of how the money is being spent.

Amid concerns that the money earmarked for smaller lenders was going low, SBA lenders on Wednesday informed that only financial institutions with less than $ 1 billion in assets will be able to put Paycheck Protection Program applications into the SBA system between 6 p.m. ET and midnight.

The SBA also said that, in consultation with Treasury, they would reassess to see if more reserved time would be needed for smaller banks to make loans in the future.


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