WASHINGTON (BRAIN) — The Small Business Administration granted 20% more Paycheck Protection Program loans to minority-owned businesses and 14% more to women-owned businesses during its 14-day period when nonprofits and those with fewer than 20 employees received exclusive access.
In addition, the SBA announced that small businesses in rural areas had a 12% gain in PPP loans granted during the period that ended Tuesday. The exclusive period began Feb. 24 and provided the chance for financial relief to the smallest of small businesses left behind in previous rounds in underserved communities.
In total, more than 400,000 small businesses and nonprofits with fewer than 20 employees had loans processed, with nearly 200,000 being first-time PPP borrowers. PeopleForBikes also has been offering industry loan resources to retailers since the pandemic began last year.
The latest round of COVID-19 pandemic funding that began in January authorized up to $284 billion toward job retention and certain other expenses through March 31, and by allowing certain existing borrowers to apply for a second loan.
The American Bankers Association and nine other financial services called on the SBA late last week to clear "thousands" of PPP loans currently on hold for several weeks because of processing errors. The groups also sent a letter to the House and Senate Small Business Committee leaders urging to keep the program open long enough for all applications submitted by the March 31 deadline to be processed and funded.
"Since its inception, the PPP has served a vital role in helping millions of small businesses survive," the groups wrote. "As this program reaches its current congressionally authorized sunset date, thousands of our nation's small businesses have filed or intend to file applications for this critical economic lifeline. They should be given the opportunity to receive these funds through the full program authorization period."
