PPP Loans Net Positive for Rural Communities

WASHINGTON, DC – The effects of the Paycheck Protection Program (PPP) continue to show positive results in rural communities according to data recently released by the American Bankers Association (ABA).

The 2020 Community Reinvestment Act (CRA) requires banks with more than $1.3 billion in assets to report data on lending to small businesses, small farms, and community development.

With 687 banks reporting, there was an almost 10 percent increase in loans originated, though small farm loan originations fell nearly 2 percent in 2020 compared to 2019.

More than 40 percent of the reported small business loans and 56 percent of the farm loans were made to businesses with less than $1 million in annual revenue.

In addition, 621 banks reported a 52 percent increase in lending activity focused on community development totaling nearly $169 billion in 2020.
(SOURCE: All Ag News)