Over $5B in US small business relief loans approved in first week -SBA
The loans, which convert to grants if borrowers follow guidelines, went to 60,000 businesses via 3,000 lenders
The U.S. Small Business Administration said on Tuesday it has approved over $5 billion in small business relief loans in the first week since reopening the Paycheck Protection Program under a new round of federal funding.
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The loans, which convert to grants if borrowers follow guidelines including using the funds primarily to cover payroll, went to 60,000 businesses via 3,000 lenders, the SBA said in a statement.
In the last round of PPP loans in April, the agency approved more than $52 billion to 475,000 borrowers in the first day and a half.
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The slower pace this time was in part by design: borrowing was restricted this first week to lenders specializing in underserved communities, including firms owned by minorities, women, and veterans, and to small lenders.
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Starting on Tuesday the program - funded with $284 billion from December's $892 billion pandemic relief package - is open to all lenders.
(Reporting by Pete Schroeder in Washington Editing by Franklin Paul and Matthew Lewis)