More than 130,000 small businesses in Texas received the most Paycheck Protection Program loans in the country, worth $28.4 billion; 112,967 small businesses in California received loans totaling $33.4 billion and 88,997 small business owners in Florida received PPP loans amounting to $17.8 billion, according to an SBA report.
The report was released last week after the federal relief program ran out of its $349 billion that funded loans for an estimated 1.6 million small businesses, which accounts for only 5% of the 30.2 million small companies in the U.S. On Tuesday, the U.S. Senate passed legislation for a second round of funding that would earmark $30 billion of PPP loans to banks, credit unions and Minority and Community Development Financial Institutions with less than $10 billion in assets. Another $30 billion would be set aside for financial institutions with assets of between $10 billion and $50 billion.
The SBA report also showed that New York small businesses secured the fourth most PPP loans in the nation, 81,075 loans worth $20.3 billion, followed by Illinois small companies that got 69,893 loans valued at $15.9 billion.
Small businesses in the five states that received the least number of loans and funds were Alaska (4,842, $921 million), Delaware (5,171, $1 billion), Vermont (6,983, $1 billion), West Virginia (7,861, $1.3 billion) and Wyoming (7,618, $837 million).
Following the program’s launch on April 3, the SBA said it processed more than 14 years’ worth of loans worth more than $342 million (of net approved dollars) in less than 14 days, which was authorized by the CARES Act to provide loans for small companies to keep their workers employed during the coronavirus crisis shutdown. Net approved dollars do not reflect the amount required for reimbursement to lenders per statute within the CARES Act, the SBA noted.
The report said nearly 5,000 lenders participated in the program, including what the federal agency described as “significant lending by community banks and credit unions.”
The SBA’s press statement, however, did not specify how many credit unions and community banks participated in PPP or the aggregate number of approved loans and their total value that were processed by them.
The SBA’s office did not provide specific information regarding credit unions or community banks as requested by the CU Times.
Nearly 20% of the amount approved was processed by lenders with less than $1 billion in assets, and approximately 60% of the loans were approved by financial institutions with $10 billion of assets or less, according to the SBA. No lender accounted for more than 5% of the total dollar amount of the program.
The average loan size was $206,000.
According to the SBA report, 1.2 million PPP loans were $150,000 or less, while 427,062 businesses received loans that ranged from just over $150,000 to $5 million, and 4,412 companies each got a loan of more than $5 million.
About 67% of the loans went to businesses in construction, professional, scientific and technical services, manufacturing, health care and social assistance, accommodation and food services and retail trade, the SBA report showed.