Insights

MPL General Counsel Corner – PPP Round 2 Funds Availability Increasing, not Decreasing

May 19, 2020

The Department of Treasury released stats yesterday for the PPP through 5/16/2020.  Interestingly, they pooled everything together (i.e., round 1 and round 2) for this update.  If my math is right (see attached spreadsheet), total funds allocated for round 2 declined to $171B from $189B as of the last update from 5/8  The average loan size per borrower also continued to drop to ~$64k per recipient from ~$74k as of 5/8 and $206k for Round 1.

Even with the good faith certification uncertainty removed, it looks like more borrowers are opting to return the PPP funds.  Possible reasons for the increasing availability of round 2 PPP funds could be a slower than expected business reopening environment if at all (i.e., no sense in taking the loan if the forgiveness benefit cannot be realized) or no real need for the funds.  The optimist in me hopes it is the latter, but the realist tells me it is likely the former.  If you have returned the PPP funds, please make sure you are fully reviewing the other relief options that are available such as employee retention tax credit.
Also, for those that are approaching the end of your PPP initial 8 weeks, here is the loan forgiveness application.  There are several PPP Loan Forgiveness webinars that are coming up.  I have listed them in the bullet points below.

Here are some other things that may be important or relevant for you:

Please see all of our prior updates at the this link or if you would like to be added to our email list, please click here

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com) or anyone in our office with questions or comments.  

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