We believe the recently passed $284B in new PPP funding will run out in two weeks or less (assuming the SBA can scale eTrans to that throughput level out of the gate). See our PPP predictions and calculations regarding when funds will run out. As you may recall, the original PPP program (created through the Cares Act) was for $659 billion, but only $525B was applied for by the August 8 deadline. We recommend you apply as soon as possible.
| CARES Act (2020) | Current Covid Relief Bill (2021) | |
|---|---|---|
| Program size | $659 billion allocated by Congress; $539 billion actually spent | $284 billion |
| Business size | < 500 or less employees (with exceptions for multiple locations) | < 300 employees (with limits on multiple locations) |
| Covid impact | Must state that Covid negatively impacted biz | >25% reduction in quarterly sales from Covid |
| Maximum PPP loan | $10 million | $2 million |
| Loan Amount | 2.5x average monthly payroll | 2.5x average monthly payroll; 3.5x for dining, lodging, and news |
We crunched the numbers and here were the most active PPP lenders during the CARES Act PPP loan program, which ran from March to August:
| Rank | Lender (loans < $150,000) | # of PPP Loans | Rank | Lender (loans > $150,000) | # of PPP Loans | |
|---|---|---|---|---|---|---|
| 1 | Bank of America | 313,755 | 1 | JPMorgan Chase Bank | 36,923 | |
| 2 | JPMorgan Chase Bank | 243,260 | 2 | Bank of America | 29,796 | |
| 3 | Kabbage | 193,841 | 3 | Truist Bank | 15,764 | |
| 4 | Cross River Bank | 192,380 | 4 | PNC Bank | 14,590 | |
| 5 | Wells Fargo Bank | 182,153 | 5 | Wells Fargo Bank | 12,288 | |
| 6 | Celtic Bank Corporation | 143,068 | 6 | TD Bank | 10,449 | |
| 7 | U.S. Bank | 99,609 | 7 | KeyBank | 9,394 | |
| 8 | TD Bank | 75,519 | 8 | U.S. Bank | 8,755 | |
| 9 | WebBank | 74,614 | 9 | Zions Bank | 8,481 | |
| 10 | Customers Bank | 72,179 | 10 | M&T | 8,308 |
Note that many of the banks on the list above only processed PPP loans for their own customers, which explains why many of the top banks on the list also happen to be many of the largest banks in America. Some Fintechs did participate in the second allocation of PPP capital after the initial funds ran out, and we suspect their earlier participation with the autumn PPP round will only accelerate how the fast the dollars are allocated. Regardless, even with all dollars being earmarked to borrowers we believe it’s likely that Congress will go back and allocate even more dollars just like with the CARES Act PPP program. And, just like with CARES Act PPP, Heroes Act PPP will be a stressful time for borrowers, bankers, and the SBA as there will an initial stampede to grab the “first come, first served” nature of the program. An open ended program (with no dollar limit) would be ideal but unlikely.
Other popular sources of SBA loan data: