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Interview, Fireside Chat, Conference Presentation

Jovita Carranza, Administrator of the U.S. Small Business Administration

Goldman SachsJovita Carranza, David Solomon
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  • The Paycheck Protection Program (PPP) is viewed as a potential model for future crises, with funding caps of $349 billion potentially increasing based on Senate proposals.
  • The SBA team plans to scale operations "like never before" to manage future crises, which Administrator Carranza advises businesses to anticipate as inevitable.
  • Current projections indicate $100 billion in guaranteed PPP funds will suffice for the "next couple of weeks and then some days after," though processing 430 new lenders may require "more than a week to two weeks."
  • A processing bottleneck is anticipated where credit unions, regional banks, global banks, and CDFIs may face queues or spam filters while handling new lender applications.
  • The application deadline for PPP loans is set for June 30 of the current year.
  • Borrowers are permitted to apply for both PPP and Economic Injury Disaster Loan (EIDL) programs, provided funds from neither are used for the same purpose.
  • Small businesses expected to remain viable are projected to secure the earliest recovery benefits, with an immediate entrepreneurial rebound predicted following the pandemic.
  • The recovery phase will feature varied pacing, with some businesses ramping up slower than others to fill gaps in the corporate market.
  • Significant workforce challenges are forecasted, including the potential need for small businesses to replace many of their employees.