Michigan's banks have worked tirelessly during the second tranche of the Small Business Administration (SBA) Paycheck Protection Program (PPP). Over 60,000 loans have been approved totaling over $5 billion statewide.
"Teams of bankers at institutions of all sizes, across both peninsulas, literally worked around the clock to meet the needs of their small business customers," stated T. Rann Paynter, president & CEO, Michigan Bankers Association (MBA). "Over 60,000 small businesses received much needed relief, enabling them to serve their own customers and maintain the jobs of their employees, keeping food on the tables of hundreds of thousands of Michiganders."
More than 2.2 million loans totaling more than $175 billion have been made nationally for the PPP. The average loan size was $79,000. Nearly 500,000 loans made during the second round of funding were made by lenders with less than $1 billion in assets which reflected loans made through May 1 and which included both asset size and state by state breakdowns.
The second tranche of the SBA Paycheck Protection Program was signed into law on April 24. Of the more than $320 billion appropriated for PPP loans, a minimum of $30 billion was set aside for community development financial institutions, banks and credit unions with less than $10 billion in assets. Another $30 billion went to banks and credit unions with assets between $10 billion and $50 billion. The bill also included an additional $60 billion in funding for the SBA's Economic Injury Disaster Loan (EIDL) program and provides long-sought clarity that agricultural businesses may apply for EIDL funds.
MBA has been urging lawmakers to approve additional funding for the PPP since the program first ran out on April 16, and Michigan's financial institutions are taking proactive steps to respond to the needs of individuals and business customers directly affected by the pandemic. Michigan's banks stand ready to help small business customers gain access to funds.
Published: Tue, May 05, 2020
