The Paycheck Protection Program (PPP) resumed accepting applications on July 6, 2020, in response to the Paycheck Protection Program Extension Act. The new deadline to apply for a PPP loan is now August 8, 2020.
PPP loans are designed to provide incentive for small businesses to keep their workers on the payroll. The SBA will forgive loans if all employee retention criteria are met, and the funds are used for eligible expenses.
The SBA and the Treasury Department released detailed loan-level data on the loans made under the PPP today. About 4.9 PPP loans have been made since the passage of the CARES Act, the coronavirus pandemic stimulus packaged passed by Congress and signed by President Trump.
“The PPP is providing much-needed relief to millions of American small businesses, supporting more than 51 million jobs and over 80% of all small business employees, who are the drivers of economic growth in our country,” said Treasury Secretary Steven T. Mnuchin.
The Treasury Secretary added that he is particularly pleased that 27% of the program’s reach was in low and moderate income communities. The average loan size is approximately $100,000, demonstrating that the program is serving the smallest of businesses.
“Today’s release of loan data strikes the appropriate balance of providing the American people with transparency, while protecting sensitive payroll and personal income information of small businesses, sole proprietors, and independent contractors,” Mnuchin added.
WASHINGTON, DC – JUNE 10: Jovita Carranza, administrator of the U.S. Small Business Administration … [+]
SBA Administrator Jovita Carranza agrees that the program has been a success.
“The PPP is an indisputable success for small businesses, especially to the communities in which these employers serve as the main job creators,” Carranza said. “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.”
Small businesses of all types and across all industries benefited from this unprecedented program. The jobs numbers released last week reinforce that PPP is working by keeping employees on payroll and sustaining millions of small businesses.
The data released today includes loan-level data, such as business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, name of lender, jobs supported, and loan amount ranges as follows:
- $5-10 million
- $2-5 million
- $1-2 million
- $350,000-1 million
These categories account for nearly 75% of the loan dollars approved. For all loans below $150,000, SBA is releasing all of the above information except for business names and addresses. The loans have reached diverse communities proportionally, across all income levels and demographics through participating banks, community development financial institutions (CDFIs), minority depository institutions, Farm Credit System institutions, fintechs and other non-bank lenders.
Click here to view the data.
Although PPP is largely credited with saving many companies that might otherwise have gone under, there were certainly things that could have been done differently. It the beginning of the program, big banks lent primarily to large companies that oftentimes were their own customers. Many companies, such as Shake Shack and the LA Lakers, decided to give the money back after being publicly shamed for taking small business loans.
PARIS, FRANCE – MARCH 02: Kanye West is seen leaving a restaurant after his show on March 02, 2020 … [+]
The SBA and Treasury made some adjustments to give broader distribution of the funds to truly small businesses, and with $130 billion left in the funding pool, companies still have an opportunity to secure financing. Controversy remains, however. CNBC reports that financial services firms were among the corporations that accepted PPP funding. Additionally, the New York Post reported that Kanye West’s Yeezy apparel brand received as much as $5 million in small business loans. West, who announced his intentions to run for President, has a net worth of $1.3 billion.