In a clear indication of just how desperate times are in the commonwealth, Virginia’s banks have provided more than $8.7 billion to small businesses through the Paycheck Protection Program (PPP). Another $3.2 billion in pending applications awaited funding as of last Thursday.
Local banks of all sizes have been working around-the-clock to provide loans through the PPP, administered through the Small Business Administration. They have processed 40,371 applications.
Many more PPP loan applications did not gain SBA approval before the $349 billion authorized for PPP loans was exhausted last week. An overnight Virginia Bankers Association (VBA) survey of member banks revealed more than 22,726 unfunded small business applications totaling requests for $3.235 billion in PPP loans. The Virginia Bankers Association estimates this data to be conservative, as bankers have stated that even more small businesses were in the process of preparing to apply.
Nationwide, the U.S. Department of the Treasury has reported that PPP has provided payroll assistance to more than 1.6 million small businesses in all 50 states and territories. Nearly 5,000 lenders participated in this critical program. No lender accounted for more than 5% of the total dollar amount of the program. The vast majority of these loans—74% of them—were for under $150,000, demonstrating the accessibility of this program to even the smallest of small businesses. The PPP provided funds to a wide variety of industries in all sectors of the economy.
The banking industry continues to urge congress to protect more American families and their jobs and businesses by allocating additional funding and to move very quickly on the $250 billion addition to the PPP currently being discussed.
“As we wait for Congress to allocate more funding to PPP, small business owners should continue to consult with their bank, as there are other programs and alternatives available with more probably coming soon,” said Bruce Whitehurst, president and CEO of the Virginia Bankers Association. “Banks are working with small businesses and individuals affected by this crisis every day to help them as much as they possibly can.”
