An interesting article by the Wall Street Journal detailing who is getting the Small Business Loans, what industries, and how much they are getting.
Authors – Anthony DeBarros and Yuka Hayashi April 15, 2020
Most of the federally guaranteed small business loans approved so far are for less than $350,000, with the construction industry the biggest beneficiary, according to data released by the Small Business Administration.
A greater proportion of businesses in Midwest states have received SBA loans, even though larger-population states are getting more money overall.
Through Monday, more than 85% of approved loans were for amounts smaller than $350,000, with loans of that size accounting for 29% of all approved funds, the SBA said this week. More than 3,000 companies received loans of $5 million or more—accounting for 9.2% of dollars loaned so far.
Dollars approved for Paycheck Protection Program loans by loan size
Source: Small Business Administration
Construction companies are so far the largest beneficiary of the program collecting about 14% of funds, followed by the professional, scientific and technical services category. The accommodation and food services category ranks fifth, receiving 9.2% of all funds; retail trade was sixth with 8.6% of funds approved.
The data released this week is the first comprehensive account of the loan program since the launch of the SBA’s $350 billion Payroll Protection Program April 3. The program is aimed at providing short-term relief to small businesses so they can sustain operations and keep their workers employed.
Businesses with 500 or fewer employees are eligible to apply for up to $10 million in funds, and some or all of the loan and the interest may be forgiven if the money is spent on payroll and other essential expenses.