An interesting article by the Wall Street Journal detailing who is getting the Small Business Loans, what industries, and how much they are getting.
and 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.