CLARKSBURG, W.Va. — Round two of the Paycheck Protection Program does have money left and the Small Business Administration is urging businesses to apply for their chance to receive the loan as soon as possible.
According to Steve Bulger, the Small Business Administration’s Regional Administrator, round two of the loan program has been a lot different that the first round of the program, and they’ve been able to catch up with the huge demand during this new round of funding.
Also, Bulger said the average loan size is much lower during this round of the loan program, with the first round of the Paycheck Protection Program paying out 1.7 million loans with the average loan size being $206,000. To contrast those numbers, this current round, as of Sunday, has given out 2.2 million loans with the average loan size being $79,000, Bulger said.
To compare, West Virginia’s loan information, according to Bulger, in round one of the program was a total of $1.35 billion, with a total of 7,861 loans given with an average payment of $171,000; during this current round, as of Saturday the total is $488 million, with 7,042 loans given with an average payment of $68,000.
“The reason that’s great is, from our prospective, that proves that money is going to smaller businesses” … “We’re seeing a lot more of the smallest businesses get funded in round two, and I think that’s what Congress and the American people really wanted to see.”Steve Bulger, Small Business Administration Regional Administrator
Bulger also said that it’s great that the SBA has been able to fund so many smaller loans because it allows other, smaller business and nonprofit organizations to have access to the program; though he did say that the approved funds from the federal government will run out.
“We want it to run out, we want every dollar to be in the hands of small business.”Steve Bulger, Small Business Administration Regional Administrator
Since the previous round of funding for the Paycheck Protection Program, there haven’t been any big changes between stipulations for businesses who are applying for the loans, though, Bulger said, there are restrictions on small businesses who are publicly traded and those companies have to show that they aren’t receiving funding from other sources in order to receive money from the SBA.
Those bigger businesses, Bulger said, have all returned money to the federal fund, and, on a higher note, many nonprofit organizations have applied for and received loans from the program. Also, if any business requests a loan from this program in excess of $2 million, then the company will need to go through an audit process before it is able to receive the funds.
While some businesses have not been able to keep their doors open during the COVID-19 pandemic, Bulger said that Congress and President Donald Trump worked “extremely quickly” with this program, and the SBA worked to get the money out as quickly as it could to businesses in need.
“This is, really, the largest business lending program in the history of the world, and basically from the day Congress approved it to the day the first loans started going out it was only about six days. So we were able to implement it very very quickly. Normally, a government program like this would take six months or more to set up and get the rules all set.”Steve Bulger, Small Business Administration Regional Administrator
Bulger said that this round has moved a lot smoother than the first round, and that part of that was getting the technology set up and there is a further need for funding in the future, they are set up to do so as quickly as possible.
The way the loan process works now is that a business works with a bank who sends the application to the SBA’s “etrans” system, and the SBA turns that approval around in “literally an amount of seconds,” Bulger said. The only stipulations the SBA has which would cause a business to be denied for the loan is if said business is in default on a previous loan with the SBA.
Once the approval is received, banks must turn over the funds to the small business within 10 days, Bulger said. He also claimed that the banks are getting the money out as quickly as possibly and he hasn’t heard of any banks delaying payment.