SBA and the U.S. Treasury Department have released PPP loan funding figures detailing how the loans were distributed
The Paycheck Protection Program (“PPP”), which provided low-interest loans that are eligible for forgiveness, exhausted its funding on April 17, 2020, and the Small Business Administration shut down the program and ceased enrolling new lenders into the program. The rollout of the program was described as messy and chaotic by both small businesses and many of the lenders that participated.
Now, the Small Business Administration and the U.S. Treasury Department have released PPP loan funding figures detailing how the loans were distributed by industry, state and loan amount. The average approved loan amount was $206,000, and 74% of loan amounts were under $150,000. The total dollar amount of approved loans was less than the $349 billion public number because it doesn’t include reimbursements to the lenders.
Here’s the breakdown of the available PPP loan data:
|State/Territory||Approved Loans||Loan Dollar Total|
|Northern Mariana Islands||56||$12,619,835.00|
|Sector||Approved Loans||Approved Loan Dollars||Percentage of Total|
|Professional, Scientific, and Technical Services||208,360||$43,294,713,938||12.65%|
|Health Care and Social Assistance||183,542||$39,892,493,481||11.65%|
|Accommodation and Food Services||161,876||$30,500,417,573||8.91%|
|Other Services (except Public Administration)||155,319||$17,707,077,167||5.17%|
|Administrative and Support and Waste Management and Remediation Services||72,439||$15,285,814,286||4.47%|
|Real Estate and Rental and Leasing||79,784||$10,743,430,227||3.14%|
|Transportation and Warehousing||44,415||$10,598,076,231||3.10%|
|Finance and Insurance||60,134||$8,177,041,995||2.39%|
|Arts, Entertainment, and Recreation||39,670||$4,939,280,138||1.44%|
|Agriculture, Forestry, Fishing and Hunting||46,334||$4,374,343,877||1.28%|
|Mining, Quarrying, and Oil and Gas Extraction||11,168||$3,894,793,207||1.14%|
|Management of Companies||3,211||$1,170,748,130||0.34%|
Size of loan
|Loan Size||Approved Loans||Approved Dollars||Percentage of Total Loans||Percentage of Total Loan Dollars|
|$150K and Under||1,229,893||$58,321,791,761||74.03%||17.04%|
|>$150K – $350K||224,061||$50,926,354,675||13.49%||14.88%|
|>$350K – $1M||140,197||$80,628,410,796||8.44%||23.56%|
|>$1M – $2M||41,238||$57,187,983,464||2.48%||16.71%|
|>$2M – $5M||21,566||$64,315,474,825||1.30%||18.79%|
As these loan funds are spent in the coming weeks, borrowers are again urged to be mindful of the approved uses which allow the loan amounts to be eligible for forgiveness. The general rule remains that 75% of the funds should be spent on payroll, including benefits, and not more than 25% may be spent on rents, utilities and mortgage interest payments. It remains to be seen whether the forgiveness phase of the PPP will be fraught with similar uncertainties that plagued the program’s initial rollout. There are significant unresolved questions surrounding the proper calculation of allowable forgiveness and further SBA guidance is anticipated.
Meanwhile, Congress remains deadlocked on replenishing the program. Treasury Secretary Steven Mnuchin said he was discussing a package that could include $300 billion in additional funds for the Paycheck Protection Program, $75 billion for hospitals and $25 billion to expand national testing efforts, though the exact sums appear to be fluid and as of the time of this writing there is not yet any Congressional agreement.