PPP loan update: PPPs are still making a comeback, but they are now at record low interest rates, according to an analysis from the Federal Reserve Bank of San Francisco.
PPP lending has grown by more than $30 billion since September, according the Fed’s monthly PPP Loan Report.
But that growth slowed in November.
That was the first month since January that PPP rates were not higher than they were before the recession.
PPG rates have been steady since October, when they rose to 5.7% from 4.7%.
The average PPG loan is now $1,071, according a Fed statement.
And interest rates on PPP and PPG loans remain about 3% higher than the Fed says they should be, which is not good news for borrowers who want to borrow at lower rates.
The Fed report is part of the Fed Chair Janet Yellen’s monthly budget review.
Here’s how the report breaks down the economic data: November PPP Loans: The average loan is $1.2 million.
Interest rates on loans are set at the Federal Funds rate.
November PPG Loans: Average loan is approximately $2.2 billion.
Interest rate on loans is set at 5.6% per annum.
PPP Loans are not yet back at their highs of the late 1990s, and their growth is slowing.
PPLO loans have seen a slight rebound, up by $28 billion to $2,847 billion in the month.
PPT loans are still at record lows, with rates set at 3.4% and 2.9%.
The Fed says the recovery in PPP borrowers is driven by higher interest rates and by a pickup in loan volumes, but PPP debt has declined.
The PPP PPLOs are still a growing share of total loan portfolios, but their share is not quite as large as it once was.
The largest PPLo is for auto loans at about $1 billion.