United States processes more than $ 500 billion in small business loans to stem coronavirus fallout

FILE PHOTO: George Washington is seen with a medical mask imprinted on the dollar bills in this illustration taken March 31, 2020. REUTERS / Dado Ruvic / Illustration / File Photo

(Reuters) – The United States has provided more than $ 500 billion in loans to small businesses hit hard by the coronavirus pandemic, and about $ 145 billion remains in the congressional-approved fund, the Small said on Sunday. Business Administration and the United States Department of the Treasury.

The SBA has processed about 2.2 million loans worth more than $ 175 billion since Congress last month authorized additional funding for the Paycheck Protection Program, which is part of nearly Spending $ 3 trillion to combat the heavy economic toll of the pandemic, which has left an estimated 30 million Americans out of work.

The second round of funding was launched on Monday, allowing lenders to provide government-guaranteed forgivable loans to small businesses shut down by the outbreak.

The average loan amount in the second round of PPP loan processing was $ 79,000, according to the statement released on Sunday.

The US government’s $ 660 billion small business bailout program has been plagued by missing documents, technology failures and the misallocation of funds to large companies. He also faces the hurdle of forgiving these hastily arranged loans.

The latest data released by the government does not address complaints about the transparency of the program. For example, it does not include a breakdown of industries that received loans.

The pandemic, which has killed more than 66,000 people in the United States, has shut down large swathes of American life, shutting down many businesses and schools and leaving hundreds of millions of people largely to take refuge in their homes. Over the past week, some US states have started allowing some businesses to reopen.

Reporting by Kanishka Singh in Bengaluru and Howard Schneider in Washington; Editing by Lisa Shumaker

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