According to a news release from the Alabama Bankers Association this afternoon, a total of 19,244 loans valued at $3.8 billion have been made to Alabama businesses through the Small Business Administration’s Paycheck Protection Program since the program was funded about two weeks ago. Nationwide, more than one million loans have been awarded to small businesses across the country, totaling nearly $248 billion.
As part of the CARES Act signed into law on March 27, the Paycheck Protection Program provides assistance to many small businesses desperate for help as a result of the pandemic. The CARES Act provided $349 billion for the program, and lawmakers are currently considering whether to fund it with an additional $250 billion.
With guidance from the U.S. Treasury and SBA, financial institutions across the state are helping their customers gain access to funding from this program.
“Alabama banks remain hard at work assisting small business owners in keeping Alabamians employed with Paycheck Protection Program loans,” ABA President and CEO Scott Latham said. “According to this latest report, Alabama ranks 21st in the number of PPP loans provided and 22nd in the total value of loans issued. Despite challenges with backlogs of applications along with systems delays across the nation, Alabama banks are persevering to provide much needed help to workers all across our state. Small business owners are encouraged to remain in close contact with local bankers to take advantage of this and other opportunities available during this pandemic.”
A report from the SBA shows that on a national level 70 percent of these loans are for $150,000 or less. The top five industries receiving funding from the Paycheck Protection Program thus far are: construction; professional, scientific and technical services; manufacturing; health care and social assistance; and accommodation and food services.
For an explanation about the PPP or other financial resources available to cope with the COVID-19 pandemic, read our April 10 cover story.
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