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 will be published in an upcoming 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.