SBA Out of Money for PPP Loan (04/17)

Yesterday, April 16, the SBA announced the $349 billion in funds allocated to the PPP loan program have been depleted. While the program has run out of money, Congress will likely add another $250 billion in the next several days.

At Visa Franchise, we applied through JPMorgan Chase on April 7 (the date Chase opened applications). This morning, our banker told us the loan processing team will provide an update on our status later today. Depending on the response, we plan to apply through Kabbage (who is currently accepting applications) and Quickbooks. We are also contacting community banks who are open to taking on new customers as they process the loans quicker than major retail banks like Chase, Wells Fargo and Bank of America. Our clients and business colleagues who applied via community banks were approved in 2-3 days and many have already received the loan proceeds. 

It is important that if you are exploring applying through multiple financial institutions, that the lender guarantees to contact you before submitting the applications to avoid a fraud alert. This can further delay the application and bring other unwanted consequences. 

Thousands of small business owners feel left behind as the average loan size approved was $239,152 according to a report released by the SBA Tuesday. For a company receiving a $239,000 PPP loan, its annual payroll is greater than $1.1 million. Assuming the company pays its workers the median American wage earned in 2019 and payroll expenses reflect 20% of gross revenue, the firm would have 20+ employees and generate $5,000,000+ in sales a year. A company of that size does not come to mind when thinking of what a typical small U.S. business represents...

Source: SBA loan report