Predicts This Round Of Funding Gone By May 1
April 27, 2020
Richard Hunt, CEO of The Consumer Bankers Association, predicts a quick end to available funds for the Paycheck Protection Program. Hunt also says Congress needs to provide an additional $300 million in funding, or a grand total of $1 trillion.
Speaking to CNBC, Hunt said, “This is an unprecedented situation — the demand for this product is off the charts.” He told the cable business news outlet it will take $1 trillion to meet the demand from small businesses. About $670 million was allocated in two rounds of funding by Congress.
Hunt predicts the second round of funding to run out in about four days, and that’s if the system doesn’t break down due to the huge demand. He expects 1.3 million loans will go to the SBA for approval, on top of the 1.6 million that were approved before funding ran out last time.
Small business owners that did not apply during the first round are not as likely to get funding this time due to the backlog of applications, Hunt said. He understands the frustration among small business owners, but said the banks are working as quickly as they can to process all the applications.
“We have moved heaven and earth over the last three weeks working in round-the-clock shifts 24/7 to get the process up so people are helped during this crisis,” Hunt said.
Read more about PPP needs and expectations.