How Many U.S. Businesses Received PPP Loans?
Last week, the U.S. Small Business Administration (SBA) and the U.S. Department of the Treasury released updated data for its Paycheck Protection Program (PPP), a loan program designed to help small businesses struggling to keep their doors open during the coronavirus pandemic. The Treasury SBA data showed that, as of August 8, 2020 – the date the program expired:
- More than 5.2 million businesses received loans;
- $525 billion in loans were approved;
- Lenders with less than $10 billion in assets distributed more than one million additional PPP loans than lenders with more than $50 billion in assets (on a total net dollars basis, small lenders lent $43 billion more than large lenders);
- The average loan given was $101,000; and
- $143 billion was left unused.
Federal lawmakers currently are debating how to use the untapped funds. In related news, the SBA also issued an Interim Final Rule that provides additional guidance on the treatment of owners and forgiveness of certain nonpayroll costs under the Paycheck Protection Program. The rule provides that certain owner-employees with less than five percent ownership stake are not subject to the owner-employee compensation rule of the PPP limiting loan forgiveness for owner compensation.
Loan forgiveness also may not include:
- Amounts attributable to tenant, subtenant or household expenses;
- Most rent payments to a related party; or
- Mortgage interest payments to a related party.