As the PPP federal loan program ran out on last Thursday, there has been a hope of additional funding to further help the small businesses receive the much-needed capital infusion. Positive news is the second wave of distribution is in the pipeline and there is a lot of progress as on Sunday the 19th per the relief funding news. There has been also an interim final rule on April 14th by the SBA, to facilitate participation in PPP by self-employed individuals, eligibility of businesses that receive revenue from legal gaming and many more – as mentioned in this policy guidance by SBA. Also there is a talk about money for hospitals, testing firms along with small businesses (refer this).
This only means more applications being expected from businesses that were not covered in the first wave. Obviously for many small and mid-sized banks and credit unions this is a huge opportunity to capture the market. The Big Banks will understandably address their existing bigger clients and so for many smaller, local companies, access to this capital is via smaller community banks and credit unions.