Insights

MPL General Counsel Corner – Round 2 PPP Funding Continues Slide

June 03, 2020

PPP round 2 stats through 5/30 were released by the SBA last night.  Loan dollars are continuing to slide (i.e., more money coming back than going out), as the total amount approved for round 2 dropped to $168B from $169B as of the prior report from 5/23 (see my spreadsheet for more details).

Total approved loans per borrower of <$350k are continuing to increase, while those that are >$350k are declining since the last update.  Clearly, the loan mix this round is benefitting the smaller businesses.

However, many initial borrowers are likely unable to use the funds or do not want to risk an audit given that more PPP funds are coming back than going out.  With many states still slowly reopening, I would bet it is more the former than the latter.

Assuming the Senate passes a revised PPP bill, I could see the loan funds moving in the other direction quickly.  If you are still considering the PPP, please make sure you are in contact with an approved lender and have your documentation ready.  Also, pay attention to the new rules which will be in place with a revised PPP bill.

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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