01/25/2021: St. Louis lenders see strong PPP interest, but not as big as first round
Though it’s early in the latest round of the federal Paycheck Protection Program (PPP) for small businesses hurt by the pandemic, St. Louis lenders report strong interest but far less than what they saw in the first round.
Bank of Belleville expects to make $10 million to $15 million in PPP loans this round, compared with $50 million last year. “The majority of borrowers from our first round of PPP loans will not qualify this time because of the revenue decline test. I estimate that 35% to 40% of the borrowers will qualify,” said Ron Stephens, president and CEO. “We are also seeing a decline in the average loan amount although this is hard to quantify at this time.”
