Funds may not last until deadline for Paycheck Protection Program loans
Just over one month remains in the Paycheck Protection Program that was extended through May 31, 2021, but given the current rate of loans being processed, funds are not expected to last through the end of May, according to Amanda Markow, communications manager of Mississippi Bankers Association.
Mississippi banks have worked with small business owners to originate new Paycheck Protection Program loans since the popular program reopened in early January, and over 20,000 new loans were made in the state in April alone.
So far in 2021, banks in Mississippi have assisted in securing 63,706 loans totaling $1.8 billion for small businesses across the state, as of data released by the SBA on April 26. The average loan amount is $28,187, making Mississippi’s average loan amount the second smallest in the country. This is in addition to the 48,010 loans totaling $3.2 billion processed during the first round of PPP. The combined total of PPP loans for 2020 and 2021 has now surpassed $5 billion.
“The extension gave many self-employed Mississippians time to take advantage of recent rules changes and the changes made it more beneficial for self-employed individuals to apply for PPP loans,” said Gordon Fellows, President and CEO, Mississippi Bankers Association. “The increase in the amount of loans processed in April, as well as the decrease in the average loan amount, are probably good indicators that many self-employed individuals are taking advantage of recent changes to the program. Mississippi banks continue to make new PPP loans every day, and we encourage self-employed and small businesses to contact their banker as soon as possible if they have not already participated in this program.”
The deadline for applications is May 31, and they must be processed by June 30, but funds are not guaranteed through the end of May. The MBA encourages anyone seeking more information to contact their bank with any questions or to start the process for a PPP loan application.