As of May 4, 2021, the Small Business Administration (SBA) announced that the most recent round of Paycheck Protection Program (PPP) funding is essentially exhausted, meaning that most lenders cannot enter new loan applications into the PPP portal.
There is also about $8 billion in PPP funding that was Congressionally mandated for use by community financial institutions, defined as Community Development Financial Institutions (CDFIs) and Minority-owned Depository Institutions (MDIs). These designated lenders may continue submitting PPP applications.
The SBA also clarified the status of loans that were in progress. If a bank submitted a loan application in the PPP portal, but the SBA did not issue a loan number, that loan will not be approved. The SBA suggested that banks in this situation consider referring these applicants to a CDFI or an MDI.
Banks did a fantastic job of getting PPP money to qualifying small businesses. According to the ABA, banks originated 74% of the 10.8 billion PPP loans, and bank loans accounted for 91% of the $780 billion in total PPP lending. The PPP provided an important lifeline to small businesses throughout Minnesota, and the program would not have been successful without the efforts of the Minnesota banks!
Citizens Bank Minnesota will process all unfunded SBA applications if the government allocates more funds to future Paycheck Protection Programs.
Let us know if you have any questions - we are here for you!
Citizens Bank Minnesota Lending Team
Questions? Please give us a call at 800-549-0194.