The Second Round of the PPP Still Going as Demand Cools

Many people thought, including your LendIt editors, that the $310 billion allocated for the second round of the Paycheck Protection Program would be gone in days; but after almost two weeks there is still more than 40% of the funds remaining; there are several reasons for the drop in demand; many borrowers sought duplicate loans from several lenders with some lenders reporting 10% of their applications were duplicates; the Treasury Department also limited public companies and others who could obtain funding from elsewhere; but the biggest reason, according to the WSJ, is that the program does not meet the needs of all small businesses; some small business owners are waiting clarity on the loan forgiveness program, some have low payroll costs compared to other expenses and others are having difficulty hiring back their team; Senator Marco Rubio (R-FL), the main architect of the PPP, said that he is pushing Treasury to issue clear guidance on loan forgiveness for the 75% payroll requirement. The Wall Street Journal

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