The housing industry’s race to receive PPP loans
In today’s Daily Download episode, HW+ Managing Editor Brena Nath discusses the Housing industry’s scramble to receive loans from the Payroll Protection Program.
For some background on the story, here’s what has happened in the industry so far:
From April 3 to April 13, about 14% of real estate companies in the U.S. – including sales, leasing and maintenance firms – got funding in the first round of the Payroll Protection Program created by Congress to rescue small businesses, according to loan data from the Small Business Administration.
The loans are intended to help companies keep employees on their payrolls amid the worst public health crisis in more than a century. But the program was beset with complications from the beginning, with lenders unable to process initial requests to provide the loans, small businesses unable to properly request PPP funding, and some banks even reportedly favoring their own clients over non-clients.
On April 9, Senate Majority Leader Mitch McConnell attempted to add $250 billion to the program using a legislative technique known as unanimous consent. In the end, the bill approved by the Senate on April 22 had $320 billion of additional funding for PPP, with $60 billion earmarked for community banks and small lenders.
But because of the way the loan distributions were initially handled, the industry-share numbers could change and for many small businesses trying to get a loan, the experience has felt a bit like being in a mosh pit – those areas at heavy metal concerts where body slamming is the rule.
Following the main story, HousingWire Digital Producer Alcynna Lloyd covers a Fannie Mae forecast that projects U.S. refinance volume hitting a 7-year high, The Labor Department’s data that shows another 3 million Americans have now filed jobless claims, and Freddie Mac’s Primary Mortgage Market survey that indicates the average mortgage rate is 3 basis points away from another all-time low.
The Daily Download examines the most captivating articles reported from the HousingWire newsroom. Each afternoon, HousingWire provides its readers with a deeper look into the stories that are not only chronicling the biggest announcements within the housing finance industry but are also helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd.
HousingWire articles covered in this episode: