4-17-2020 – Bankers urge more business funding

Posted on: April 17th, 2020 by admin

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April 17, 2020

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From Staff Reports

Apr 16, 2020 12:00 PM

 

A group representing North Carolina banks appealed Thursday for Congress to approve more money for programs intended to help businesses survive through the coronavirus-related economic crisis.

 

The Small Business Administration announced Thursday morning that all $349 billion that Congress appropriated for the Paycheck Protection Program already had been committed. The program offered loans of up to 250% of a business’s average monthly payroll expenses, and in many cases the federal government will forgive loan amounts that employers spend on payroll, rent, leases, mortgage interest and utilities.

 

The SBA also said that the $10 billion Congress appropriated for Economic Injury Disaster Loans – which provided a $10,000 advance within just a few days of application for loans of up to $2 million – also was used up.

 

Through 6:30 a.m. Thursday, the Small Business Association reported that more than $338 billion already had been approved for more than 1.6 million loan approvals – an average loan amount $207,915 – and the NCBA said North Carolina banks made 23,786 PPP loans to small businesses, totaling more than $5.7 billion, an average of $239,638 per loan.

 

Congressional leaders have publicly voiced support for more funding, but Republicans and Democrats have not been able to agree on the details. Republicans want to limit an “interim” bill to an extra $250 billion for the PPP, and Democrats want to add $100 billion for hospitals, $150 billion for state and local governments and a boost to food assistance.

 

The NCBA urged small business owners to call their member of Congress at 202-224-3121 to express their support for additional funding.

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