MONTGOMERY, Ala. – The U.S. Small Business Association on Sunday released data from round two of the Paycheck Protection Program. The data shows in just the first five days of the second round of funding, Alabama banks approved nearly 27,000 loans totaling $1.42 billion. The report details PPP activity through Friday and shows that on a national level Alabama ranks 27th in terms of number of loans issued and 28th in overall dollar value.
Alabama’s average loan size during the second round of funding was $53,170 as opposed to the national average of $79,000. Since Congress passed this CARES Act in late March, the PPP has funneled nearly 55,000 loans valued at $6.28 billion into the state of Alabama keeping small businesses running and Alabamians at work.
“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,” ABA President and CEO Scott Latham said. “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.”
The report also shows that more than 2.2 million loans totaling more than $175 billion have been made across the country through the PPP during the second round of funding. Nearly 500,000 loans made during the second round of funding were made by lenders with less than $1 billion in assets.
The Alabama Bankers Association represents 126 banks. Banks in Alabama have combined deposits of more than $100 billion and have 1,466 locations across the state.
