Detailed data shows the full picture of jobs retained by PPP loans in the district

In response to a Freedom of Information Act lawsuit, on December 1, 2020, the US Small Business Administration (SBA) released additional details regarding loans received through the Paycheck Protection Program (PPP), including the names of beneficiaries as well as the exact amounts of the loans. On the other hand, the previous disclosure included only loan ranges for loans over $ 150,000 and company names retained for loans under $ 150,000.

The updated data shows that a total of 13,335 small businesses (businesses with less than 500 employees) in the district have been approved for a collective $ 2.14 billion in PPP loans. Of these 13,335 businesses, 10,528 (79%) received loans of less than $ 150,000 and 2,807 (21%) received larger loans.

According to the data, 86.3 percent of all loans received at DC were for $ 250,000 or less and accounted for less than 30 percent of the total amount of money. Loans over $ 1.5 million accounted for only 1.8 percent (241 firms) of the total number of loans, but these firms received the largest share (30.6 percent) of the total amount. money provided in the district. Of all the borrowers, only two received the maximum loan amount of $ 10 million allowed under the program – Cava Mezze Grill and the American College of Cardiology Foundation.

The program retained a total of 168,317 jobs in the district. Jobs in the accommodation and food services sector constitute 20.1 per cent of the jobs preserved, holding the largest share among all sectors. 35.7 percent of the jobs retained were from loans under $ 250,000 and 22.8 percent were from loans between $ 2.5 million and $ 5 million.

The data shows that the reported number of jobs retained for 15.1 percent of businesses is listed as zero and missing for 6.3 percent of businesses.

Restaurants in the district have been among the hardest hit businesses, many of which were closed at the start of the pandemic and continue to be affected by various COVID-19 restrictions. Data shows that 763 full-service restaurants (representing 5.7% of borrowers) received $ 164.3 million in PPP loans, the largest share among industries (7.7%), with an average of 215,000 dollars per loan. District law firms obtained the second largest share of the total loan amount, receiving $ 145.1 million in loans at 688 firms.

The Paycheck Protection Program was designed as part of the CARES Act in March to help small businesses, which can use the funds for wage costs, rent, and utility payments. Loans will be fully forgiven if 75 percent of funds are used for salary costs. Program terms have changed several times before stopping accepting new applications in August and exposing the inequitable access banks for small businesses and businesses owned by people of color or women. Lawmakers are considering another newly introduced relief package, which includes nearly $ 300 billion in additional funding for a second round of PPP and other SBA programs, targeting the hardest-hit companies. With the number of COVID-19 cases increasing and questions over vaccine availability, small businesses remain uncertain about their survival.

Featured photo by Ted Eytan (The source).

Sunaina Kathpalia is a research assistant at the DC Policy Center.

DC Policy Center Fellows are freelance writers and we welcome the expression of a variety of perspectives. The views of our fellows, published here or elsewhere, do not reflect the views of the DC Policy Center.

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