Here’s when Round 2 of PPP could run out

COLUMBUS (COLUMBUS BUSINESS FIRST) — The pool of federal funding designed to keep small business afloat during the coronavirus pandemic is stretching further than expected in the second round of the Small Business Administration’s Paycheck Protection Program.

The program still has about $135 billion yet to be dispersed, SBA Great Lakes Administrator Rob Scott said in a Tuesday afternoon call with reporters. Scott said the SBA, which initially thought it would run out of money for loans around the middle of this week, now expects the funding to last until early next week.

That’s because the average size of loans in the second round has been much smaller, around $67,000 per loan versus about $207,000 per loan in the first round. About 5,300 lenders are now participating; SBA has published a list of financial institutions offering loans this round.

“The simple answer is the average loan size is down drastically, which is a very good sign,” Scott said. “I’m focused on the number of businesses getting loans. That’s telling me that … we’re not going through the funds as fast, but we’re reaching more businesses and nonprofits.”

For more, go to Columbus Business First.