April 27, 2020
By: Caity Witucki
Contributing Editor, Main Street Monday
Main Street Monday – Distribution of Initial PPP Funding Among Small Businesses
Last week, USAFacts released a report detailing how the initial funding of the first round of Paycheck Protection Program (PPP) loans was distributed among small businesses across the country. The study took into consideration the states that received the most PPP loans, how the funds were distributed per capita, the size of the loans, and the industries that received the most loans.
The data was gathered with the intent of helping lawmakers and lenders understand how the second round of PPP funding might be distributed.
Here are the highlights from USAFacts’ report:
- Texas small businesses received the greatest number of PPP loans (more than 88,000 loans).
- North Dakota received the most in loans per capita ($1,824 per capita).
- California and New York received $527 and $600 per capita, respectively.
- The largest proportion of dollars was given out through loans between $350,000 and $1 million.
- The largest loans, those over $5 million, made up less than 10% of the total program.
- Small businesses in the construction sector received more dollars through PPP loans than any other industry, receiving nearly 14% of the total aid.
- Professional services and manufacturing received the second and third highest amounts of PPP finds at 12.26% and 12.25% respectively.
- Unfortunately, some sectors hit particularly hard by closures, such as the arts, entertainment, and recreation sector, received only 1.5% of the funds.
To ensure the second round of PPP funding is fairly distributed, lawmakers have set aside $30 billion for smaller banks, credit unions and community development financial institutions with less than $10 billion in assets. This not only ensures that smaller institutions get their fair share of the program but also helps local small businesses who may already have a relationship with a community bank.