As companies with big dollars continue returning funds meant for small businesses in need, we are learning more about where that money will go. According to the SBA, “more than $2 billion of Paycheck Protection Program funding was either declined or returned and will be made available during the current application period.” Carlos Condarco, a spokesperson with Congresswoman Donna Shalala’s (D-FL) office tells News & Guts:
“My understanding is that the money that these companies are returning will go back into the PPP fund and will be redistributed to true small businesses that have applied for loans.”
We are told no decision has been made about whether the banks will have to return fees they received for distributing the now returned funds. But USA Today reports:
Wells Fargo… has said the fees generated by the program will be distributed as charitable grants to nonprofits that support small businesses. JPMorgan Chase wouldn’t comment.
The big banks are getting shut out from submitting applications for a period tonight. The SBA sent out an alert stating:
To ensure access to the PPP loan program for the smallest lenders and their small business customers, starting at 4 p.m. today EDT through 11:59 p.m. EDT, SBA systems will only accept loans from lending institutions with asset sizes less than $1 billion dollars.
As for the businesses that aren’t returning their big loans, SBA Administrator Jovita Carranza writes that there will be oversight:
To further ensure #PaycheckProtectionProgram loans are limited to eligible borrowers, @SBAgov has decided, in consultation with @USTreasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate.