Big US banks set to earn huge PPP loan fees
The largest banks in the US will earn hundreds of millions of dollars in transaction fees under the federal government's Paycheck Protection Program.
JPMorgan Chase processed the most PPP at $28.8 billion of loans as of June 20, yielding it over $800 million in fees. Next was Bank of America, which issued $25.2 billion.
Banks with assets under $250 million would also get a significant windfall.
According to Rick Wayne, president and CEO of Northeast Bank, a community bank, processing PPP loans was enormously profitable for them, "maybe the most profitable thing" they've done.
Northeast Bank is set to collect $9.8 million in fees from PPP loans.
Fees range from one to five percent, depending on the loan.
The PPP is meant to help smaller American businesses survive the pandemic-triggered recession and form part of the country's $2 trillion economic stimulus package.
But the Small Business Administration revealed that the loans had been doled out to billionaires like Kanye West, large chain restaurants, and Washington lawmakers.