The window for Alabama small businesses to access federal relief dollars reopened on April 27, and tens of thousands took advantage of the opportunity, according to the Small Business Administration (SBA).
Under the Paycheck Protection Program (PPP), eligible small businesses may receive relief funds through government-backed loans from banks and credit unions. PPP is administered through SBA.
Congress originally appropriated $350 billion to PPP. Those funds were depleted within days.
Under a second round of funding, Congress replenished the fund with $310 billion.
In a release on Monday, SBA stated that 26,724 loans had been issued in the state, totaling $1,420,911,674, as part of the second round. The average loan size in Alabama this round is $53,170.
These figures placed Alabama 27th among all states for its number of loans and 28th in overall dollar value.
Scott Latham, president and CEO of the Alabama Bankers Association, noted that some of the state’s smallest businesses were getting relief during this round of PPP.
“During the first wave of lending the average loan size approved for Alabama banks was more than three times higher than in the second round,” Latham said in a statement from his organization. “The decreased average loan size during the second round of funding shows that sole proprietors, independent contractors and even smaller businesses received much-needed funding during this critical time. I am thankful for Alabama bankers who have remained steadfast and diligent in working around the clock to serve their customers’ needs.”
Ahead of the second round of PPP, North Alabama banker Macke Mauldin explained to Yellowhammer News that the ability to help some of the state’s smallest businesses was the primary reason why he saw a need for additional PPP funding.
“What we’ve seen is the ones who applied toward the end of the request period were smaller and smaller requests,” said Mauldin, president of Bank Independent. “But they’re just as needed as if it was a million dollar request to that small business. It is just as needed for the smallest of small businesses.”
SBA announced there is still approximately $140 billion remaining in the PPP fund.
Tim Howe is an owner of Yellowhammer Multimedia
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