![]() Rather than see some of your customers go across the street to a bigger bank, PayPal or the other fintechs might be a great option for your customer you want to take care of,” Fleming explained. “Maybe you’re a one-man show and you’re trying to get out now. That could help businesses that don’t have established relationships with a bank currently processing the program or those who work with community banks that are overwhelmed by applications. Treasury Department’s approval of fintech companies, such as PayPal and Square, to participate in the PPP. SBA does not yet have a statewide breakdown of loans by lender, he added.Īlso potentially aiding the flow of PPP loans is the U.S. “The large banks are the ones that jumped on first and had the systems and money to build an infrastructure to process right away.”įleming noted that his office had been working with several smaller banks in Delaware in recent days to get them set up to participate in the PPP – the most recent one gaining access Friday – and so he expected to see Delaware’s participation level rise in future reports. “Credit unions are a lot more popular and prevalent in the Northeast, and when you go out west you see that large banks really dominate SBA portfolios,” he explained. If workforce or compensation levels fall, the level of forgiveness on the loan will decline as well.Īs far as Delaware’s last-place position, SBA Delaware District Director John Fleming told Delaware Business Times that it wasn’t wholly unexpected due to the prevalence of community banking here and the state’s smaller population. That eligibility requires an employer to maintain workforce and salary levels and rehire furloughed employees. Payments on the two-year loans with 1% interest are deferred for six months and if at least 75% of the loan is used on payroll costs over the eight weeks, that debt will be forgiven. It can also be used to pay rent, utilities and interest on mortgages. The $349 billion program, approved by Congress in March as part of the $2.2 trillion CARES Act, intends to provide businesses with 500 or fewer employees with collateral-and-guarantee-free loans to pay up to eight weeks of payroll, as well as benefits. Of those loans, 70% sought $150,000 or less, but nearly half of all dollars allocated went to loans of $1 million or more. Pennsylvania saw 36,604 loans approved totaling more than $9.9 billion, New Jersey saw 17,187 loans totaling nearly $5.9 billion, and Maryland saw 11,937 for more than $3.9 billion.Īcross the country, more than 1 million loans totaling $247.5 billion were approved by more than 4,600 lenders in the first 11 days of the program that has been marked by confusion. When compared with neighboring states like Pennsylvania, New Jersey and Maryland, the gulf is even more stark. ![]() ![]() Wyoming, which has 40% fewer residents than Delaware, saw 5,730 loans approved for a total value of $706,932,317. That ranks the state last among all 50 states in both loan total and aggregate value, only topping the District of Columbia and overseas American territories.Įven less populous states than Delaware, such as Wyoming, Vermont and Alaska, fared better in both categories. Its window to take advantage of the program may also be closing as the funds are reportedly almost exhausted unless Congress intervenes.ĭelaware small businesses have received 1,974 loans totaling $590,422,870 as of April 13, according to SBA data released Monday. Small Business Administration’s Paycheck Protection Program. WILMINGTON – While Delaware may be known as the First State, it is last in the nation in terms of total loan approvals and sheer dollars under the U.S. Delaware ranked last in approved PPP loans, according to data released by the SBA on Monday. ![]()
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