The Small Business Administration (“SBA”) joined forces with the U.S. Treasury Department announcing it will disclose loan-level data for the nearly 4.9 million Paycheck Protection Program (“PPP”) loans made.
What we learned from the SBA’s July 6, 2020 press release is that PPP loans supported more than 51 million jobs. A full 80% of these employees were employed by small businesses. The SBA prides its data announcement on 27% of the program funds were distributed into low- and moderate-income communities. The average loan size was approximately $100,000.
The SBA hopes this data disclosure will bring transparency and trust to its PPP and capital lending programs. For more specific PPP loan detail see the state-by-state guide.
Summarily, the SBA’s 4.89 million loans amounted to more than $521 billion with an average loan size of $106 thousand distributed through just over 5,400 participating lenders. These lenders are the banks that received, review and approved all the PPP loan applications.
These lenders and many others are constantly seeking to distribute SBA backed loans. SBA backed loans provided by these banks are partially guaranteed by the SBA. Effectively, distributing a loan backed by the SBA reduces the bank’s risk of a borrower default. Consider using an SBA loan if you are a business looking to access capital.
We understand it can be complex. Rest assured we provide you guidance on what SBA loans can be used for and help you compile the most attractive loan application increasing the likelihood you receive a favorable loan. The SBA loans are a great alternative to high interest rate commercial loans provided by certain banks and private lenders. Small and medium size businesses should strongly consider SBA loans especially given the uncertain economic times the U.S. economy is facing. DW Capital Advisors, LLC is here to help you understand and secure the SBA funds you need.
DW Capital Advisors, LLC, based in Boston, Massachusetts, serves clients across the great nation of America. Our mission is to help individuals and small to medium sized businesses access all the benefits offered by U.S. Small Business Administration capital lending programs. If you are looking to start, acquire or expand a business, then consider the capital sources available through the SBA programs. Versed in the SBA lending requirements and guidelines, and with our access to a network of banks and advisors, DW Capital Advisors prides itself on the breadth, depth and quality of service we provide to clients.
Disclosure statement: The information provided in this post should not be relied upon to make a decision. DW Capital Advisors, LLC makes no representation as to the accuracy or completeness of the information provided.