If you haven’t completed a Paycheck Protection Program (PPP) loan application by the previous deadline, you’re in luck. On July 4, President Donald Trump extended the deadline for PPP loan applications by more than a 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 for businesses in the United States. The PPP loan was created following the COVID-19 pandemic. Its aim was to keep employers in touch with their employees throughout the duration of any government-ordered business closures.
PPP loans can be forgiven entirely if the businesses receiving the money spend it within a certain time frame and for 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 around 4.9 million loans to businesses across the country. More than $521 billion has been borrowed, according to the US Small Business Administration.
Who gets these loans? The PPP loan program has come under criticism, mainly when it was revealed that some large companies were approved for PPP loans. The program was designed specifically for the millions of small businesses across the country.
The SBA and the Treasury Department hoped to fix those loopholes that allowed a company like the Los Angeles Lakers to get a PPP loan when a second round of financing was approved.
According to the SBA, healthcare and social assistance businesses got the most PPP loans, based on the amount borrowed.
Here are the top 10 NAICS industry sectors by 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 ($40.3 billion)
- Other services ($31.1 billion)
- Wholesale ($27.7 billion)
- Administrative and support services and waste management and remediation services ($26.4 billion)
- Transportation and warehousing ($17 billion)
California businesses have received the most PPP loan funding, with $68.2 billion to date. 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 reports that 4,840 loans above this amount have been approved. But this only represents a tenth of approved loans. And the more than $33 million approved in these loans represents 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 this size represent 66.8% of all PPP loans approved.
The SBA says the average PPP loan is $107,000. And 86.5% of all PPP loans were under $150,000.
Image: United States Small Business Administration