SbLenders.com’s data analysis shows funding will be depleted in less than two weeks.
LOUISVILLE, KY, USA, December 26, 2020 /EINPresswire.com/ — SbaLenders.com released a study today of the current Covid relief bill approved by Congress. By analyzing data from the Small Business Administration’s Payroll Protection Program loan program (“PPP”), SbaLenders.com was able to make predictions about the adequacy of the $284 billion program. Highlights of predictions from the study include:
• The $284 billion of funds for PPP Round 3 (“PPPr3”) will run out within two weeks.
• The mad scramble to obtain PPPr3 loans will reemerge as the $284 billion program will only cover roughly 54% of eligible participants.
• Stress levels for entrepreneurs, bankers, and the SBA will manifest once again due to the scarcity of funds, but Congress and the Administration will replenish the program once the funds run dry just as they did when PPPr1 funds disappeared after just 13 days.
• Banks will again loathe participating in the program and will draw the ire from politicians and customers alike from the program that they had no part in creating nor desire to participate in.
• Fintechs, with their scalable software platforms and nimble ability to adapt, will carry an even larger share of overall PPPr3 loans than past PPP rounds.
• Financial institutions should start enrolling applicants sometime between January 11th and February 1st depending on actions by lawmakers in Washington.
SbaLenders.com is a resource for entrepreneurs to find the best match for commercial loans and SBA loans. We track all loans processed through the SBA 7(a) loan program and provides detailed reports on loan trends so borrowers can quickly find an active SBA lenders. SbaLenders.com is not part of or associated with the SBA or the U.S. government. For more information, visit www.sbalenders.com.
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