New Report Highlights the Contributions of Community Banks to the Paycheck Protection Program

An analysis of call report data from FDIC-insured banks finds that community banks are playing a vital role in supporting small businesses through the Small Business Administration’s Paycheck Protection Program (PPP). Community banks hold nearly a third of all bank-held PPP loans, compared to holding only 15 percent of all bank loans, according to a new FDIC report, “The Importance of Community Banks in Paycheck Protection Program Lending,” which is published in FDIC Quarterly.

Specifically, the FDIC found that as of June 30, 2020:

  • FDIC-insured banks held $482 billion, or 92 percent, of total PPP loans.
  • FDIC-insured community banks held $148 billion or 31 percent of bank-held PPP loans, compared to their 15 percent share of all bank loans.
  • More than 75 percent of community banks in nearly every state and U.S. territories are participating in the PPP.
  • Through their participation in the PPP, community banks reported an increase in their share of small business loans to 29 percent from 25 percent one year ago.