Displaying items by tag: SBA
The Money is Not Flowing: a report on COVID Loans
Special ask: please help us filling out the survey about your application by sharing COVID Loan Tracker with your business network.
As many of you know, we started a site called COVID Loan Tracker yesterday to help small business owners track applications and loan issuance so they can know when money starts to flow.
FINSUM readers gave an enormous response with over 200 small business owners in our space filling out the survey. Overall , as of 7:30 am we have had 440 small businesses report on CTL in the first 18 hours, representing up to $650,000,000 in loan applications across 47 states. Below are the findings:
0% have received PPP loans (i.e. money actually deposited)
0% have received EDL grants (i.e. money actually deposited)
39% are LLCs
28% are S-corporations
Average PPP loan request: $427,000
Average employees per application: 14
96% of applications are for less than $50,000
18% applied for more than $250,000
2% applied for $1m or more
49% applied through small and/or regional banks
16% applied through JP Morgan Chase
The conclusion is that money is clearly not flowing yet (at least at any meaningful level). Please share CTL with your networks so we can aggregate more data to keep small business owners informed and empower the media with data to keep the government accountable.
White House Plans to Add $250 bn to Loan Program
(Washington)
A lot of financial advisors are small business owners, and thousands of them are likely looking for the government’s Payment Protection Program assistance right now. As anyone involved in applying for the program knows, things have been very frustrating and uncertain, with that stress exacerbated by the fact that it is a first come-first serve program. However, there is some potential good news on the horizon. The White House and Senate leader Mitch McConnell are trying to get another $250 bn of loans approved by Congress, which would add to the $349 bn that is already being deployed (apparently it is already being deployed).
FINSUM: It appears as though demand is exceeding supply, so this additional funding is likely to be very necessary.