PPP is Strengthening America’s Economy

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BY: Mid-Atlantic Regional Administrator (acting) John Fleming

The Paycheck Protection Program (PPP) numbers show that this is not only the largest, but also the most effective American relief program ever signed into law. As small businesses continue to struggle with dwindling demand, workforce shortages, and struggling supply lines, the U.S. Small Business Administration (SBA)-administered PPP is giving business owners and their employees a much-needed cash infusion to overcome these difficult times.

In the latest Paycheck Protection Program Report, with approvals as of March 7, 2021, we see the SBA has guaranteed more than 7.55 million PPP loans, totaling more than $687.3 billion since 2020. In the newest round of funding, which began January 11, 2021, the SBA guaranteed over 2.4 million PPP loans for more than $156.2 billion. This represents an increase of more than 200,000 guarantees over the last week, with an almost $9 billion increase in net dollars approved during the same time frame.

Daily, SBA staff field thousands of phone calls and emails from applicants seeking information regarding the status of their PPP loan. I’d like to remind these borrowers that the PPP legislation gives SBA-approved lenders Delegated Authority to act as the SBA’s agent, meaning the lenders determine which applications to process and when to submit them.  Therefore, any questions or concerns regarding individual PPP loan applications should be directed to the lender. Similarly, for those unsure about their PPP loan status, or if a PPP loan application is flagged due to data anomalies, the lender will have more information. Borrowers whose application is already submitted to SBA by their lender can create an account in the SBA Capital Access Financial System to monitor their loan status.

The PPP isn’t the only way SBA is helping the small business economy.  Economic Injury Disaster Loans (EIDLs), the upcoming Shuttered Venue Operators Grant, Express Bridge Loan, and Debt Relief programs are all options impacted small business owners should consider, depending on their needs and qualifications. Additionally, each of our 68 District Offices and hundreds of Resource Partners around the country provide trusted guidance and assistance, including free counseling, mentoring, and training for entrepreneurs. Use SBA’s Local Assistance Directory to locate the SBA District Office or Resource Partner service location nearest you.

The SBA has stood side by side with small businesses for nearly 70 years. Whether you need capital, advice or access to new markets, we’re here for you. Visit www.sba.gov to start your journey of success.