NEW YORK/WASHINGTON (Reuters) – The two largest U.S. banks, JPMorgan Chase & Co and Bank of America, said on Thursday that they submitted almost half a million applications worth nearly $46 billion to the Small Business Administration’s Paycheck Protection Program for small businesses hurt by the coronavirus shutdown.
So far, fewer than 30,000 loan applications in total from both banks have been approved by the SBA, the banks said just one day after the government temporarily shut the program to big banks in order to create “fair access” for smaller lenders.
The decision by the SBA only to accept applications from banks with less than $1 billion in assets from 4 p.m. to midnight on Wednesday frustrated several big banks who said they also submitted applications for small businesses and did not know the status of most of them.
Bank of America, which submitted 250,000 applications totaling $28 billion, said its average loan size was around $100,000 and that three-quarters of applications came from businesses with fewer than 10 employees.
JPMorgan, which submitted about 220,000 applications worth $17.8 billion, said its average loan size was around $81,000. Roughly half of the applications were filed by businesses with fewer than five employees, a bank spokeswoman said.
About 40% of JPMorgan’s applications were for less than $25,000, the bank said.