Michigan Small Businesses Approved Over $ 1.5 Billion In Loans In New P3 Round

Michigan small businesses were approved for more than $ 1.5 billion in federal loans in the first two weeks of the new paycheck protection program launched earlier this month by the US Small Business Administration.

The SBA has approved through Jan. 24 1,371 P3 loans for Michigan small businesses, according to data released today.

Congress authorized the new $ 284 billion PPP round in a pandemic relief bill enacted and enacted in late December. The loans are available for small businesses with 300 or fewer employees who can demonstrate a reduction of at least 25% in gross revenue in comparable quarters from 2019 to 2020.

Since the opening of the new round of PPP, the Grand Rapids-based company Independent bank received 760 claims for just over $ 100 million, President and CEO Brad Kessel said today. Kessel expects the current PPP cycle to total around 40-50% of what the bank wrote in 2020, Kessel said.

Nationally, the SBA approved 400,580 PPP loans for $ 35 billion as of Jan. 24 in the new round that began Jan. 11. Accommodation and restaurants accounted for nearly 20% of all loans nationwide, or 45,785 for $ 6.52 billion. The construction industry was second with 14 percent of all loans at 38,825 for $ 4.95 billion.

The SBA is accepting PPP loan applications until March 31.

Fifth Third Bank was the second largest loan issuer in the new round of PPP nationwide in terms of value at $ 539.7 million through 3,835 loans.

Michael Shepperd, SBA Loans Officer for Fifth Third Bank, told MiBiz earlier this week that the bank has proactively reached out to customers as part of the new round of PPP. The fifth third saw “relatively large” demand for PPP loans early on from restaurants and bars, which in several states are still under restrictions.

“Obviously they’re still closed and they need those funds,” Shepperd said.

Almost two-thirds of the total number of loans the SBA has approved to date in the new cycle, or 262,778, were $ 50,000 or less. Another 13.8%, or 55,356, was $ 50,000 to $ 100,000, according to the SBA. The average loan amount nationwide is $ 87,000.

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