Community bank loans getting through: SBA

Community bank loans getting through: SBA

Community banks under $10 billion in assets neared the $30 billion in Paycheck Protection Program funds set aside for them by the law restarting the program, according to reports of Small Business Administration data.

The SBA reportedly said that as of 1 p.m. (Eastern time) Tuesday, these institutions made 331,119 approved loans worth nearly $30 billion. They will continue to be able to submit loans to be funded by the $250 billion in general funds authorized for the second phase of the PPP.

Lenders with between $10 billion and $50 billion in assets have been approved for nearly 84,000 loans worth more than $10 billion. The law allocated $30 billion of the overall $310 billion for these institutions.

Overall, the SBA said it has approved more than 475,000 loans worth more than $52 billion from more than 5,100 lenders. The agency said the average loan size under phase two of the PPP is $111,000, down from $207,000 in the first round. Roughly 85 percent of the loans have been worth $150,000 or less, it said.

ICBA continues encouraging community bankers to use its Be Heard grassroots alert to tell policymakers to ensure community banks have equitable access to PPP systems and to demand answers on why so many community banks have been locked out from submitting loans.