There's still plenty of federal cash readily available for small , medium-sized businesses (SMBs) in need of help up through the COVID-19 crisis.
In a study released Monday (July 6), the U.S. Treasury Department and Sba (SBA) indicated the Paycheck Protection Program (PPP), the forgivable loan initiative, still has nearly $132 billion waiting to be borrowed. The remaining amount was printed at the end of the 18-page report.
Of that number, more than $30 billion in approved PPP loans continues to be returned or canceled by businesses, a senior administration official told CNBC.
At no more May, PYMNTS reported at least $20 billion in PPP loans have been canceled, many by smaller businesses afraid they couldn't spend the money in ways that would be eligible for a loan forgiveness.
In his remarks with the discharge of the information, Treasury Secretary Steven Mnuchin centered on the dollars which were distributed.
\”The PPP is providing much-needed relief to countless American small businesses, supporting a lot more than 51 million jobs and over 80 % of small business employees, who are the drivers of monetary development in our country,\” he said in a statement.
He said 27 % from the program's loans were distributed to companies in low- and moderate-income communities.
Overall, the average loan dimensions are $107,000 and 86.Five percent of the loans were less than $150,000, the report said.
Breaking down the loans, the amount of companies that received a loan of $50,000 or under was 3.2 million, 67 percent of the total number of contracts. About 674,000 firms took loans in amounts of $50,000 to $100,000, or 14 percent from the total.
Loans from $100,000 to $150,000 totaled 291,000 businesses, or 6 %. For loans from $150,000 to $350,000, the number of companies totaled 376,000, or 8 percent. Nearly 200,000 companies borrowed between $350,000 and $1 million, or 22 percent from the total.
The Top 5 sectors to obtain loans were healthcare, at 12.9 percent; professional, scientific and technical services a close second at 12.7 percent; construction, 12.3 percent; manufacturing at 10.3 %; and accommodation and food services, 8 percent.
The PPP is \”an indisputable success for smaller businesses, especially towards the communities in which these employers serve as the primary job creators,\” SBA Administrator Jovita Carranza said inside a statement. \”In 3 months, this administration could act quickly to obtain funding in to the hands of those that faced enormous obstacles because of the pandemic. Today's data implies that small businesses of all and across all industries taken advantage of this unprecedented program. The jobs numbers released a week ago reinforced that PPP is working by keeping employees on payroll and sustaining countless smaller businesses through this time around.\”
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