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As PPP funding runs out, Hunt says demand may be $1 trillion
April 15, 2020
That’s how fast the Small Business Administration has been providing delegated authority to lenders to disperse PPP loans. By mid-afternoon Wednesday, $5 billion in approvals was being granted every two hours.
Consumer Bankers Association President and CEO Richard Hunt said on a conference call that the program might need $1 trillion before it’s done.
“We think any hour now we’ll reach the $345 billion number, and we know, right now, there are at least 700,000 applications that our banks have in their possession that have not been sent to SBA for verification yet,” Hunt said. “We think at the end of the day we might need upwards of $1 trillion to satisfy the demand of America’s small businesses. That’s not a number we came up with – this is the demand we’re seeing from small businesses.”
One of the association’s member banks, BBVA, said that the applications it has handled would impact 312,000 employees at small businesses.