Third of PPP Loans Were Over $1 Million
This article is published in collaboration with Statista
by Willem Roper
The U.S. Small Business Administration has released preliminary data on the usage of their $650 billion Paycheck Protection Program for small businesses across the country. The data shows that over a third of all loans taken out by small businesses were for over $1 million, with many going to business and financial service firms rather than other industries hit hard by COVID-19 like hospitality, food and transportation.
The data also shows how many small businesses most in need have failed to receive a large amount of money allocated by the PPP. According to the Wall Street Journal, only 4.6 million loans have been approved, contrasted with a total 31 million small businesses in the U.S.
Some analysts say that while PPP loans have helped create a healthier economy and unemployment rate in the short term, they may simply be hiding longer-term economic problems. It’s currently too early to tell how PPP has affected businesses when re-hiring employees.
By location, much of the loan amounts went to small businesses in the Midwest, with smaller, disproportionate amounts going to the West and East Coast of the U.S.
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