JPMorgan Chase said Friday it has secured roughly $15 billion in the second round of Paycheck Protection Program funding, with about $8.4 billion of that going to small businesses in the Tri-State Area.
The nation’s biggest lender started notifying clients in the wee hours of the morning that their emergency funding from the Small Business Administration had been approved overnight, helping desperate employers meet payroll as the COVID-19 pandemic takes an unprecedented toll on the local economy.
As The Post reported on Thursday, many local businesspeople were anxious to hear the news after losing out on round-one funding while a number of public companies received millions and seeing news reports that smaller banks were getting preferential treatment in the program.
“They finally let the big banks’ apps get processed, I guess,” a relieved Chaim Homnick told The Post after learning that he will get some relief to keep things going at his two businesses in the Five Towns on Long Island.
Comparing how Chase fared in round-one versus round-two offers some eye-popping contrasts.
The $2.6 trillion megabank only managed to get 27,000 PPP loans through the first round, totaling about $14 billion at an average loan size of roughly $500,000.
While the bank got only $1 billion more in round two, it serviced about seven times as many clients. New York alone almost doubled the number of clients that Chase got loans for nationwide in the first round.
Sources close to the megabank indicated that a clearer understanding of the process and better guidance from the SBA were key to getting the money where it was needed most.
But for local business owners, just getting the money is what mattered most.
“Finally!” said one attorney in private practice who got his good news in the middle of the night. “The amount? Definitely NOT in the millions.”