Data released Monday by the U.S. Trump administration showed that businesses in big states such as California and Texas received the most in loans from the government’s small business relief program, with health care, professional services and construction among the sectors that have tapped the largest amount of funding.
Of the US$521-billion allocated through the Paycheck Protection Program, about $68.2-billion – roughly 13 per cent – went to companies in California. Another US$41.1-billion flowed to Texas businesses, based on data released Monday by the Treasury Department and Small Business Administration, which are administering the program.
Nearly 5,000 companies received individual loans between US$5-million and US$10-million, according to the data. While the administration included ranges for the loan amounts, it did not include specific figures.
The information released Monday included names and employment data for companies that received more than US$150,000 in loans. It also provided ZIP codes, industries and the number of “employees retained” at the companies, along with the lender that gave them the loan and the date it was approved.
The figures did not include details on the roughly US$30-billion in loans that were returned as companies realized they were not eligible for the program, worried they could not meet program requirements or gave back the money after public outcry about big firms getting funds.
The administration said the money allocated through the program so far had helped support more than 50 million jobs. The share of overall small business payroll supported per state ranged from 72 per cent in Virginia to 96 per cent in Florida, according to the Treasury release.
The data showed that 601 companies said they would be retaining 500 employees, exactly the program limit.
The Paycheck Protection Program offers businesses with 500 or fewer employees loans that can be forgiven if the employer meets certain conditions, such as using the bulk of funds to pay employees. An initial round of program funding was rapidly exhausted, but a second round saw slower demand, leaving the program with about US$131.9-billion in its coffers. President Donald Trump on Saturday signed legislation that extends the application deadline, originally June 30, to Aug. 8.
After initially refusing to disclose detailed information about borrowers, the Trump administration reversed course in mid-June, saying it would provide more data amid pressure from lawmakers and watchdog groups.
Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.