UPDATED 4/27/2020: The original piece analyzed the first $247 billion in PPP loans, and has been updated to reflect updated numbers provided by the SBA.
The Small Business Administration (SBA) announced that as of April 16, 1.66 million loans had been approved through the Paycheck Protection Program (PPP) put in place by the CARES Act. Intended for businesses to cover payroll costs without paying the government back for a large portion, the loans were worth $342 billion. According to SBA leadership, the agency processed more than 14 years' worth of loans in less than 14 days.
The SBA ran out of the $350 billion allotted for the program just 13 days after its establishment. As the PPP reopens with an additional $321 billion funding from Congress, here's a look at where the original $350 billion allocated by the CARES Act went.
Which states received the most in SBA Loans?
Texas received a greater number of PPP loans than any other state: more than 134,000 loans as of April 16. California received 113,000 loans. Other states, such as Illinois, New York, and Florida, which have been significantly impacted by COVID-19, also received a large number of loans.
Related: What does the PPP mean for small business?
Considering the total loan amount received in each state per capita, less populated states received a significant amount more per head than heavily populated states like California, Florida, and New York. North Dakota received the most at $2,037 per capita. California and New York received $845 and $1,041 per capita, respectively.
How big were the loans?
The largest proportion of dollars were given out through loans between $350,000 and $1 million. The largest loans, those over $5 million made up 9% of the total loan amount. The largest possible loan amount was $10 million.
Which sectors received the most?
Construction sector small businesses received more in PPP loans than any other industry: 13% of the $350 billion. Professional services and manufacturing followed, receiving 13% and 12%, respectively. Some sectors particularly hard hit by closures received less, such as the arts, entertainment, and recreation sector, which received only 1.5% of the $350 billion.
PPP loans by industry
Looking forward
As the Paycheck Protection Program reopens with an additional $321 billion funding from Congress, it is critical to understand how the initial funding was distributed. Whether the distribution of the next $321 billion in PPP loans will mirror that of the first round of loans remains to be seen.
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