If you didn’t complete an application for a Paycheck Protection Program (PPP) loan before the previous deadline, you’re in luck. On July 4, President Donald Trump extended the deadline for PPP loan applications for more than another month.
The new deadline for PPP loan applications is August 8.
PPP Loan Deadline Extended to August 8
The previous deadline of June 30 came and went but there was still more than $130 billion available to businesses in the US. The PPP loan was created in the wake of the COVID-19 pandemic. Its goal was to keep employers connected to their employees through the length of any government-ordered business shutdowns.
PPP loans can be totally forgiven if the businesses awarded the money spend it within a certain time frame and on limited business expenses, namely payroll.
READ MORE: PPP Loan FAQs
PPP Loan Data
So far, the 5,461 banks and other lenders participating in the PPP loan program have approved about 4.9 million loans to businesses across the country. More than $521 billion has been borrowed, according to the US Small Business Administration.
Who’s getting these loans? There’s been some criticism of the PPP loan program, mostly when it was revealed that some larger companies were getting approved for PPP loans. The program was designed specifically for the millions of small businesses across the country.
The SBA and Treasury Dept. hoped to solve those loopholes which allowed a company like the Los Angeles Lakers to get a PPP loan when a second round of funding was approved.
According to the SBA, health care and social assistance companies have gotten the most PPP loans, based on the amount borrowed.
Here are the top 10 NAICS industry sectors based on PPP loan amounts:
- Health care and social assistance ($67.3 billion)
- Professional, scientific, and technical services ($66.4 billion)
- Construction ($64.5 billion)
- Manufacturing ($54 billion)
- Accommodation and food services ($42 billion)
- Retail trade ($40.3 billion)
- Other services ($31.1 billion)
- Wholesale trade ($27.7 billion)
- Administrative and support and waste management and remediation services ($26.4 billion)
- Transportation and warehousing ($17 billion)
Businesses in California have received the most PPP loan funding, getting $68.2 billion so far. Texas has the second-highest total at $41.1 billion and New York is third at $38.3 billion.
PPP Loan Size
Of the nearly 5 million PPP loans approved (through June 30), some were for more than $5 million. In fact, the SBA says 4,840 loans for more than that amount have been approved. But that represents just one-tenth of the loans approved. And the more than $33 million approved in those loans is about 6.5% of the amount borrowed.
The overwhelming majority of PPP loans have been for $50,000 or less. The 3.2 million loans of that size represent 66.8% of all the PPP loans approved.
SBA says the average PPP loan is $107,000. And 86.5% of all PPP loans were less than $150,000.
Image: US Small Business Administration