LEXINGTON, Ky. (WTVQ) – After a rocky start that saw billions of dollars funneled to big companies while small business got pushed aside, the Small Business Administration is working out the kinks in the Paycheck Protection Program, especially during the second round which began last week.
According to the SBA and Treasury Secretary Steven T. Mnuchin, 2.2 million loans totaling more than $175 billion were made to small businesses last week.
Of those, Kentucky received almost $1.1 billion, Mnuchin said in a statement.The numbers come after the highly touted program draw criticism in its first phase for money funneled to big companies, including billion-dollar operations such as the Los Angeles Lakers.
Once exposed, many of those companies have started returning the money.
In phase two, the average size of the loan has been $79,000, according to the SBA report.
In addition, nearly 500,000 of the loans were made by lenders with less than $1 billion in assets and non-banks as opposed to the financial giants that profited from the first round of loans. More than 850,000 loans—about one third of the 2.2 million loans—were made by lenders with $10 billion of assets or less.