Delaware ranks dead last in loan approvals as Paycheck Protection Act is quickly drained of funds

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Delaware ranked dead last in funds approved under the Paycheck Protection Act.

The state trailed behind states with smaller populations, according to Small Business Administration figures released earlier this week. Delaware has about 975,000 residents.

As of Thursday morning, media reports stated that the fund had run out of money.

Total loans for Delaware came in at under $600 million.Wyoming received $100 million more in loans, despite having 300,000 fewer people than Delaware. Sparsely settled North Dakota scooped up more than $1.3 billion in loan approvals.

Lenders in Delaware have worked overtime to process loan applications under the $349 billion program that is expected to run out of funds in the near future.

Applications were taken by lenders under guidance from the Small Business Administration.

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The Delaware SBA office on Wednesday issued a release noting that1,035,086 and counting Paycheck Protection Program loans have been approved nationwide, totaling $247,543,393,521 nationwide and $590,422,870 in Delaware.

“On many levels, the Delaware small business community is a tight-knit one,” said John Fleming, SBA Delaware Director. “For generations, Delawareans have taken pride in personal relationships with neighbors and friends who head the start-ups and long-standing mom-and-pops that make the First State home. Through the Paycheck Protection Program, SBA is proud to stand together with participating lenders to help sustain the jobs and hometowns – the very legacies –those small businesses create by providing them with quick access to the capital that they need; right here and right now.”

An Email was sent to Fleming seeking further comment.

The Paycheck Protection Program provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed.

SBA forgives the portion of Paycheck Protection loan proceeds used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest. Loan payments may be deferred for one year.

Paycheck Protection program loans are available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020. Paycheck Protection loans are available through participating SBA 7(a) lender, bank, and credit unions.

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