PPP: New loans top $ 72.7 billion in January

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A new report from the Small Business Administration (SBA) found that $ 72.7 billion in Paycheck Protection Program (PPP) loans were distributed and 891,044 loans were approved in January. The number of lenders is 4,942.

Broken down further, there were 226,336 initial loans with an average loan of $ 21,157. A total of 220,385 were for companies with 10 or fewer employees and 38,718 for low-to-middle-income companies (LMI) and those earning less than $ 250,000.

There were a total of 664,708 second-drawing loans with an average loan size of $ 102,228. There were 482,303 secondary draw loans for businesses with 10 or fewer employees. Of those for LMI companies and those making less than $ 250,000, there were 133,640 loans.

The main lender for PPP was Bank of America with 35,627 loans approved over $ 1.9 billion with an average loan size of $ 54,152. In second place was JP Morgan Chase with 19,578 approved loans of $ 1.4 billion and an average volume of $ 69,890. In third place is M&T Bank with 9,381 approved loans of $ 1.2 billion and an average volume of $ 130,893.

Itria Ventures and Zions Bank were the second highest.

Broken down by industry, the report found that lodging and dining services received $ 13 billion in loans, construction received $ 10 billion, and professional, scientific, and technical services received $ 8.2 billion. Manufacturing received $ 8 billion and healthcare and welfare received $ 7.5 billion.

Negotiations are in progress with the new presidential administration on a further economic stimulus package, reported PYMNTS. Amid controversy over the next rounds of individual stimulus payments, there could also be more PPP funding if a new package is approved.

The SBA is working on improvements to first-draw PPP credit verification to help smaller businesses have more time to access their funds. There will also be improvements to make applying for a second draw loan easier.

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