As Bloomberg reports, the pace of processing loans from the Paycheck Protection Program (PPP) has "slowed abruptly," suggesting the second round of relief could soon be exhausted.
The first round of PPP was quickly depleted in April in under two weeks. The total size of the program was about $349 billion, which fed $30 billion in emergency loans to companies affected by virus-related shutdowns each day for the duration of the 13 days of operation. The program was relaunched on April 27, with about $320 billion for companies, exhausting about 55% of the funds in the first five days. The daily pace of loan processing has dramatically slowed from $35 billion to $11 billion to now a daily pace of about $2.3 billion.
Many questions remain as to why the rapid decline in loan processing has been seen: