PPP Round 2 stats…more signs that a recovery is underway?
PPP Round 2 stats were published by the SBA yesterday and the average loan size shrunk dramatically to $79k from $206k for all of Round 1. I wanted to see how the Round 2 numbers compared to Round 1. Below are some takeaways that I thought were interesting (FYI, I am attaching my spreadsheet so you can have the data as well).
- 90% of the approved loans thus far in Round 2 are <$150k per borrower, while they only accounted for ~37% of the total dollars approved.
- Total approved loans as of 5/3 are up 33% in Round 2, versus all of Round 1.
- Of the 5,432 lenders that participated in this round, 82% had less than $1B in assets, but only accounted for 21% of the total approved loans, 15% of the total approved dollars and had an average loan of $58K per borrower.
- Lenders with >$50B in assets accounted for ~3% of the lenders, ~47% of the total approved loans, ~53% of the total approved dollars and had an average loan of $90k per borrower.
- The States that had the biggest jump in approved loans and approved dollars as a percentage of the total in Round 2 versus Round 1 were as follows:
- CA: ~15% of approved loans (vs. ~7% in round 1) and ~19% of approved dollars (vs. ~10% in round 1)
- FL: ~8% of approved loans (vs. ~5% in round 1) and ~7% of approved dollars (vs. 5% in round 1)
- NJ: 3.5% of approved loans (vs. ~2% in round 1) and ~4% of approved dollars (vs. 3% in round 1)
- NY: ~7% of approved loans (vs. ~5% in round 1) and ~10% of approved dollars (vs. ~6% in round 1)
From the looks of things, the small banks are doing a lot more work this round given the number of approved loans. Also, some of the hardest hit States (CA, NJ & NY) are having the biggest jumps in businesses participating in the program.
With the recent warnings and updates from the Treasury Department and Secretary Mnuchin, I still hear of concerns from businesses and organizations about taking the PPP money. However looking at the numbers, the optimist in me says that businesses would not be taking on the risk of the PPP loan if they were not of the belief that things were improving.
Keep moving forward. Things will improve and hopefully return to some level of normalcy.
Here are some other things that may be important or relevant for you:
- MORE PPP FAQs (Questions 40-42): The Treasury Department provided more clarification for treatment of employee lay-offs, seasonal employer certifications and non-profit eligibility.
- Can a company in bankruptcy get PPP money? The rules say no. However, Rob Bovarnick (firstname.lastname@example.org) of Bovarnick & Associates LLC reviews recent case law and brings up interesting points to consider.
- Upcoming Webinars and Helpful Resources
Please see all of our prior updates at the this link.