Following Congressional action last week, President Biden signed a two-month extension on the Paycheck Protection Program into law on Tuesday afternoon. This extension will give Mississippi small businesses time to work through “hold codes” and other technical challenges that have impacted some borrowers and will also allow self-employed individuals time to take advantage of recent program rule changes. Mississippi banks have worked with small business owners to originate new Paycheck Protection Program (PPP) loans since the popular program reopened in early January, and more than 6,000 new PPP loans were made in the last week of March alone, the most in a week since the program reopened in January.
So far, banks in Mississippi have assisted in securing 36,841 loans totaling $1.3 billion for small businesses across the state, as of data released by the SBA on March 28, 2021. The average loan amount is $36,347 this year. This is in addition to the 48,010 loans totaling $3.2 billion processed during the first round of PPP.
“The Mississippi Bankers Association commends Congress and the Administration for extending PPP. Extending this bipartisan program gives many self-employed Mississippians time to take advantage of recent rules changes,” said Gordon Fellows, President and CEO, Mississippi Bankers Association.
“The increase in the amount of loans processed last week as well as the decline in the average loan amount are probably good indicators that these loans are now going to self-employed individuals as intended, and it demonstrates that there is still a need for the program. Mississippi banks continue to make new PPP loans every day. The As the economy continues to approach more normal levels, Mississippi bankers will continue to focus on helping Mississippi businesses going forward.”
The deadline for applications is now May 31, and the SBA has through the end of June to process loan applications. The MBA encourages anyone seeking more information to contact their bank with any questions or to start the process for a PPP loan application.