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United States processes over $ 500 billion in small business loans to stem coronavirus fallout | Money

The average loan size in the second round of PPP loan processing was US $ 79,000. Reuters photo

WASHINGTON, May 4 – The United States has provided more than US $ 500 billion (RM 2.15 trillion) in loans to small businesses hit hard by the coronavirus pandemic, and approximately US $ 145 billion remains in the fund approved by Congress, the US Small Business Administration and Treasury Department said yesterday.

The SBA has processed about 2.2 million loans worth more than $ 175 billion since Congress authorized additional funding for the Paycheck Protection Program last month, part of nearly 3 Trillion dollars in spending to combat the heavy economic toll of the pandemic, which has thrown an estimated 30 million Americans out of work.

The second round of funding was launched today, allowing lenders to provide government-guaranteed forgivable loans to small businesses shut down by the outbreak.

The average loan amount in the second round of PPP loan processing was US $ 79,000, according to the statement released yesterday.

The US government’s $ 660 billion small business bailout program has been plagued by missing documents, technology failures and the misallocation of funds to large companies. He also faces the hurdle of forgiving these hastily arranged loans.

The latest data released by the government does not address complaints about the transparency of the program. For example, it does not include a breakdown of industries that received loans.

The pandemic, which has killed more than 66,000 people in the United States, has shut down large swathes of American life, shutting down many businesses and schools and leaving hundreds of millions of people largely to take refuge in their homes. Over the past week, some US states have started allowing some businesses to reopen. – Reuters