The Trump Administration released details yesterday on the success of the Paycheck Protection Program (PPP). They also released the names of the businesses that took out loans from the program.
The program was signed into law in late March as part of the CARES Act. It offered forgivable loans to small businesses in an effort to keep them afloat and their employees on the payroll. The program came as the coronavirus forced the US economy to shut down. Originally, the business had to use 75% of the loan amount to keep employees on the payroll. However, that was later reduced down to only 60% of the loan amount.
The program originally had $349 billion as funding to help small businesses. After those funds ran out, the government replenished the program with an additional $310 billion.
With information provided by the Treasury and Small Business Administration, the White House released the list of companies that received a loan of at least $150,000. Loans of that amount or greater represent nearly 75% of the total dollar amount lent out by the program.
The vast majority of loans, however, were for a much smaller amount. Nearly 87% of the loans approved as part of the PPP were for $150,000 or less, according to the SBA.
PPP Funding and Other Figures
Looking at the information provided by the White House, more than half of funding went to businesses in just five industries. The health care and social assistance industry received just under 13% of the money, while professional and technical services received 12.7% of the funds. 12.4% went to the construction industry, 10.3% went to the manufacturing industry and 8.1% went to restaurants, bars, hotels and other food- and hospitality-service employers.
Other notable figures from the report:
- The program has approved 4.9 million loans for a total of more than $521 billion.
- According to the companies receiving the funds, the program has saved or supported more than 51 million jobs.
- The program has about $132 billion in funding remaining.
- The average loan size is $107,000.
- California-based businesses received the most money overall at $68.2 billion. Texas was second at $41.1 billion and New York third at $38.3 billion.
- Businesses in economically distressed areas as designated by the SBA got nearly 23% of the loan money, while companies in rural areas received about 15% of the funds.
Additionally, public outcry helped return more than $30 billion dollars to the fund. Ruth’s Hospitality Group, which owns the Ruth’s Chris Steak House chain, AutoNation, ShakeShack and even the NBA’s Los Angeles Lakers are among those that took out PPP loans that were ultimately returned.
The administration just extended the program, but it has already proven to be a huge success.
“The PPP is an indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators,” SBA Administrator Jovita Carranza said in a statement. “In three months, this Administration was able to act quickly to get funding into the hands of those who faced enormous obstacles as a result of the pandemic.”