Louisiana banks complete 26635 PPP loans totaling $5.1 billion

Louisiana banks complete 26635 PPP loans totaling $5.1 billion

Louisiana banks complete 26635 PPP loans totaling $5.1 billion

A breakdown of the PPP program provided by the Treasury Department's Small Business Administration shows that the five states receiving the highest amount in loans were California ($33.4 billion), Texas ($28.5 billion), NY ($20.3 billion), Florida ($17.9 billion) and IL ($16 billion). The program, which is aimed at encouraging small businesses to keep their employees on the payroll, ran out of money last Thursday, less than two weeks after banks began accepting applications. Funds can also be used to pay interest on mortgages, rent and utilities.

While the program has nearly run out of the $349 million allocated to it, and critics have said it has fallen short in the industries and states most battered by the coronavirus crisis, Treasury Secretary Steven Mnuchin insisted it has been a success. Those loans meant to keep small businesses afloat instead went to major companies like Shake Shack, Ruth's Chris, Potbelly Sandwich Shop, Taco Cabana, J. Alexander's, the coal company, Hallador Energy, and the largest sushi chain in the nation, Kura Sushi USA Inc., among others.

The most recent such suit was filed late Sunday by a California company and comes as Democrats and the White House say they are close to a deal that would replenish the $349 billion paycheck protection fund created by the March 27 CARES Act with $400 billion. Congress is working on the next stimulus package, which would include another round of funding for the loan program.

The LBA said in a news release that it supports Congress appropriating additional funds for PPP as many small businesses are waiting to have their applications processed. "What a slap in the face to the untold thousands of legitimate small businesses that will not survive this crisis, many because they couldn't get the help they were promised from the president soon enough, if at all".

In all, SBA said it approved more than 1.6 million loans.

New Jersey has more than 861,000 small businesses, the 11th highest in the US, according to the state Business Action Center.

The overall average loan size is $206,000, but 74% of the loans were for under $150,000, "demonstrating the accessibility of this program to even the smallest of small businesses", according to Mnuchin.

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